Is an ITR-7 required even if the trust has no taxable income?
Yes. A trust claiming exemption under sections 11 and 12 must file ITR-7 regardless of whether tax is payable, if its income before applying the exemption exceeds the basic exemption limit. Not filing can lead to the denial of exemption for the year.
What is Form 10BD?
Form 10BD is the statement of donations a trust with 80G registration files with the department. It lists each donor, PAN and amount. Without a 10BD, donors cannot get credit for their deduction. After filing, the trust issues a Form 10BE certificate to each donor.
Do I need a CA to audit the trust accounts?
Yes. If income before applying exemption exceeds the basic exemption limit, the accounts must be audited and the report in Form 10B or 10BB signed by a practising Chartered Accountant who generates a UDIN. The audit report must be filed before the return.
How long does 12AB registration last?
Registration under 12AB is normally valid for five years and must be renewed before expiry. Provisional registration lasts for three years and must be converted to regular registration within six months of commencement of activities or three years, whichever is earlier.
Are donations to a trust always tax-free?
Voluntary contributions to a registered trust are generally not taxed if they are applied to its objects, but corpus donations, anonymous donations and donations from related persons are treated differently. We classify each receipt and keep the supporting record.
Can an NGO receive foreign donations?
Only if it holds FCRA registration, and foreign contributions must be received in a designated FCRA bank account and reported in annual returns. FCRA is a separate law from the Income-tax Act, and the two compliances need to be consistent. We coordinate the income tax side with your FCRA team.
Who must get a tax audit done under section 44AB?
Businesses with turnover above ₹1 crore (₹10 crore if cash receipts and payments are each 5% or less of the total) and professionals with gross receipts above ₹50 lakh need an audit. Taxpayers who opt out of presumptive taxation and earn below the basic limit, and some others, also fall in. We check every trigger before the year ends.
What is the due date for the tax audit report?
The audit report in Form 3CA/3CB-3CD is generally due by 30 September after the financial year, and the income tax return of an audit case is due by 31 October. Missing the audit date can attract a penalty under section 271B of 0.5% of turnover, capped at ₹1.5 lakh.
Is a UDIN required on a tax audit report?
Yes. Every tax audit report signed by a practising Chartered Accountant must carry a UDIN (Unique Document Identification Number) generated on the ICAI portal, and the UDIN is quoted when the report is uploaded. The report is signed by the practising CA, not by the platform or office staff that collects the documents.
