Charities, Trust and NGO Audits
Audit and compliance services for charitable and non-profit organizations
Ashish Jayalata and Associates provides audit and compliance services for charitable trusts, societies, and Section 8 companies in Ghaziabad, Sahibabad, and across the NCR. The practice handles statutory audit of NPO accounts, 12A and 80G registration and renewal, annual compliance filings, FCRA advisory, and donation utilisation reporting, ensuring that the organization meets its statutory obligations and maintains its tax-exempt status.
What This Includes
- Trust and NGO Audit: Audit of accounts of charitable trusts, societies, and Section 8 companies under Section 12A(b) of the Income Tax Act and under the Companies Act 2013 (for Section 8 companies), including verification of income, expenditure, assets, and liabilities, and reporting on compliance with the trust deed or MOA.
- 12A Registration and Renewal: Application for registration under Section 12A of the Income Tax Act, 1961 (Form 10A) for income tax exemption, and renewal of 12A registration upon expiry, with updated documentation and compliance verification.
- 80G Registration and Renewal: Application for registration under Section 80G (Form 10G) to allow donors to claim deductions on donations, and renewal of 80G registration, including compliance with the conditions for maintaining 80G status.
- Annual Compliance Filings: Preparation and filing of annual return (Form 10B for 80G entities), income tax return (Form ITR-7 for charitable trusts), and other applicable statutory filings.
- FCRA Advisory: Advisory on Foreign Contribution Regulation Act 2010 requirements, including FCRA registration or prior permission, maintenance of designated bank accounts, reporting of foreign contributions, and annual FC-4 return filing with the Ministry of Home Affairs.
- Donation Utilisation Reporting: Preparation of utilisation certificates and reports showing how donations and grants have been utilised for the stated charitable purposes, as required by donors, government agencies, and regulatory authorities.
- Financial Statement Preparation: Preparation of financial statements (income and expenditure account, balance sheet, receipt and payment account) in accordance with the applicable accounting framework for non-profit organizations.
Who It Is For
This service is relevant for charitable trusts registered under the Indian Trusts Act or state trust acts, societies registered under the Societies Registration Act 1860, Section 8 companies incorporated under the Companies Act 2013, and any non-profit organization that is required to undergo audit or comply with 12A, 80G, or FCRA requirements. It covers organizations operating in Ghaziabad, Sahibabad, and the NCR region.
Our Process
1
Understanding the Entity -- Reviewing the trust deed or MOA, understanding the nature of charitable activities, reviewing 12A/80G certificates and FCRA status, and identifying compliance requirements.
2
Audit Planning -- Developing the audit plan with scope, materiality levels, and audit procedures, based on the entity size, risk profile, and regulatory requirements.
3
Fieldwork -- Conducting audit procedures including verification of income and expenditure, examination of donation records, bank reconciliation, asset verification, and compliance testing.
4
Reporting and Compliance Filings -- Preparing the audit report, financial statements, and all applicable compliance filings (Form 10B, ITR-7, FC-4), and advising on any corrective actions required.
Documents Required
- Trust deed or society MOA and rules and regulations
- 12A and 80G registration certificates (if already obtained)
- Bank statements for all accounts (including foreign contribution account)
- Donation records -- receipts, registers, and donor details
- Utilisation certificates for grants received
- Previous year financial statements and audit reports
- FCRA registration certificate and annual returns (if applicable)
- Records of charitable activities and expenditure
Frequently Asked Questions
Which trusts and NGOs need an audit?
A trust or NGO whose income exceeds the prescribed limits must get its accounts audited under the Income Tax Act. Audit is also required under the Companies Act for Section 8 companies, and for entities claiming 12A/80G benefits in many cases. We confirm which audit applies based on your income and registration type.
How is a trust audit different from a regular audit?
A trust audit under the Income Tax Act has two parts: the normal audit of accounts and a special report in Form 10B (or 10BB for certain taxpayers) that certifies the trust is applying its income for charitable purposes. This is what protects the 12A/80G exemptions. We prepare both parts together.
Which forms are used in a trust audit?
A trust audit report is filed in Form 10B, with Form 10BB for taxpayers who opt for the alternative regime. The audit also covers the maintenance of books and the application of income for charitable or religious purposes. We ensure the forms are completed accurately and uploaded before the due date.
What annual compliance does a registered NGO need?
A trust or NGO must maintain books of accounts, file income tax returns, file the audit report where applicable, and, if registered under 12A/80G, file the annual return in Form 10B or 10BB. Donation receipts must be issued to donors. Missing these filings can lead to cancellation of exemptions.
How much does a trust audit cost in Ghaziabad?
Trust audit fees depend on the size of the trust, the number of transactions, and whether the Form 10B special report is involved. We quote a fixed fee after reviewing the accounts. Because exemptions depend on the audit, we complete it in time for the prescribed filing deadline.
What documents do I need for a trust audit?
We need the trust deed and registration documents, books of accounts, bank statements, income and expenditure details, donation receipts, and records showing how income was applied for charitable purposes. For 12A/80G entities, we also review the compliance with exemption conditions.
Do FCRA-registered NGOs have separate audit rules?
Yes. An NGO registered under FCRA must have its foreign contribution accounts audited and file an annual return in Form FC-4 on the FCRA portal. This audit is separate from the income tax audit. If your NGO receives foreign funds, we handle both audits to keep every filing compliant.
Need help with trust or NGO audit, 12A/80G registration, or FCRA compliance in Ghaziabad, Sahibabad, or NCR? Contact the office to discuss your requirement.
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