Why is Compliance Important?
- Ensures smooth functioning and legal protection.
- Maintains eligibility for tax exemptions under 12A & 80G.
- Builds credibility for fundraising and CSR grants.
- Avoids penalties and risk of de-registration.
- Mandatory for receiving government and private funding.
Trust Deed Compliance
- A trust must operate as per the objectives and rules mentioned in the registered Trust Deed.
- Any amendments in the deed must be approved by the Charity Commissioner or Registrar.
Annual General Meeting (AGM) & Trustee Meetings
- Conduct an AGM to review financials, activities, and future planning.
- Maintain proper minutes of the meeting.
- Non-compliance can lead to legal challenges and scrutiny.
Annual Filing with Charity Commissioner / Registrar
Trusts must submit annual reports to the respective authority.
Required Documents:
Audited Financial Statements
List of Trustees & Governing Members
Activity Report of the Trust
Non-compliance can result in penalties or suspension of trust registration.
Income Tax Compliance for Trusts
Filing of Income Tax Return (ITR-7)
- Mandatory for trusts claiming tax exemptions.
- Due Date: 31st October every year.
- Penalty: ₹1,000 to ₹10,000 for late filing.
Form 10B – Audit Report
- Mandatory for trusts availing tax exemptions under Section 12A & 80G.
- Due Date: Before filing ITR-7.
Form 10BD – Donor Information Filing
- Trusts receiving donations must file Form 10BD annually.
- Due Date: 31st May every year.
- Penalty: ₹200 per day for non-filing.
Form 10BE – Donation Certificate to Donors
- Trusts must issue Form 10BE to donors for claiming tax exemptions.
- Must be provided after Form 10BD submission.
GST Compliance (If Applicable)
- If a trust carries out commercial activities exceeding ₹20 lakh (₹10 lakh in special category states), GST registration is required.
- Monthly/Quarterly GST Return Filing as per turnover.
- Penalty for Late Filing: ₹50 per day for Nil return and ₹100 per day for regular return.
