Balance Sheet Audit & Tax Queries


As per Sec 12A every Charitable Organization or Trust must audit their accounts by a Chartered Accountant as defined in the explanation of Sub-Sec (2) of Sec 288 & secondly every charitable organization should apply for registration within 1 year from the date of creation. If they fails to apply then they should submit Audit Reports for the past three years or as may be available.

As per Taxation Law Amendment Act,2006 it is mandatory for every organization to get its accounts audited where its income exceeds the minimum exemption limit i.e. Rs. 1,50,000 as per Finance Act 2008

Filing of Return

Every Charitable Organization / Non-Profit Organization should file their return of income when the organization exceeds the minimum exemption limit during the previous year. It should be filed with the income Tax Officer or the Assessing officer of their local jurisdiction. Return should be filled as per the provisions of Sec 139 4A & 139 4C in the manner provided in Sec 139 of this Act.

The Finance Act 2002 has clearly instructed and it is mandatory for all organization to file Annual Returns under Sec 139 (1). This is mandatory for all organizations registered under section 10(21), 10(22B), 10(23A), 10(23B), 10(23C) etc.

Forms and Due Date

Every Charitable organization or Trust should file their Annual return in Form No. 3A by 30th Sep of the Assessment year. Annual return should be accompanied with Audit Report in the Form 10B prescribed under Rule 17B of the Income-Tax Rule, 1962.

If any organization fails to submit their annual return then they can use the bonus time i.e they can submit their return before the expiry of 1 year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier. For Example:- Return of Income for Year 2010 -11 can be submitted upto 31st Mar 2013


If any charitable organization fails to furnish the return of Income or fails to furnish within allowed time, which is required under sub-sec 4A, 4C of Sec 139 then they should pay Rs 100 as penalty everyday during which the failure continues.


One set of the following documents are required to be attached with the annual return:

  1. Audit Report in Form 10B.
  2. Balance Sheet.
  3. Income and Expenditure Account.
  4. Receipt and Payment Account.
  5. Copy of the Registration Certificate.
  6. In case the organisation has accumulated income, resolution for accumulation.
  7. Form 10 in which application for accumulation is made.

We have specialized team of Chartered Accountants and Tax Consultants to look after your Balance Sheet , Audit Report, and other Tax Queries.

If you need our service for Balance Sheet Audit or if you have any tax related queries kindly mail us at or visit our office personally.


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