NGO Compliance
Ensuring Complete NGO Compliance Across India
Keep your NGO fully compliant with expert guidance on FCRA, CSR, Income Tax, and ROC filings. Simplify annual statutory requirements, avoid penalties, and maintain operational transparency with Tax Pal Solutions.
Key Highlights:
- Complete NGO Compliance Checklist
- Guidance for FCRA, CSR & Financial Reporting
- Timely Statutory Filings & Documentation
- Dedicated Expert Support & Automated Reminders
- Trusted by 8,000+ NGOs Across India
Overview of NGO Annual Compliance
Annual compliance is crucial for transparency, credibility, and operational success. It ensures your NGO remains legally compliant, builds donor confidence, and maintains eligibility for CSR funds and foreign contributions.
Why Compliance Matters:
- Legal Protection
- Financial Health & Tax Exemptions
- Donor Trust & Funding Opportunities
- Reputation Management
- Operational Sustainability
Legal Framework Governing NGOs in India:
| Type of NGO | Governing Law | Key Compliance Requirements |
|---|---|---|
| Trusts | Indian Trusts Act, 1882 / State-specific Public Trust Acts | Income Tax Filing, Annual Audit, Books of Accounts |
| Societies | Societies Registration Act, 1860 | AGM, Annual Report, Income Tax Filing, Audit |
| Section 8 Companies | Companies Act, 2013 | Board Meetings, AGM, ROC Filings (AOC-4, MGT-7), Director KYC, ITR, FCRA & CSR Compliance |
| FCRA-Registered NGOs | Foreign Contribution (Regulation) Act, 2010 | FC-4 Filing, Separate FC Bank Account, Utilization Certificates |
Types of NGO Compliance
1. Compliance for Trusts
- File annual ITR
- Conduct annual audit
- Maintain books of accounts
- Renewal of 12A, 80G, or FCRA registrations if applicable
- Maintain compliance manual for trustees
2. Compliance for Societies
- Hold AGM within six months of FY end
- Submit annual report to Registrar of Societies
- File ITR annually
- Conduct audit if 12A registered or exceeding limits
- Renewal of society registration as required
3. Compliance for Section 8 Companies
- Conduct Board Meetings (2–4 per year)
- Hold AGM annually
- Prepare and file audited financial statements
- ROC filings: AOC-4 (30 days), MGT-7 (60 days), ADT-1 (15 days)
- File Director KYC by 30th September
- Ensure FCRA & CSR compliance if applicable
- Maintain a detailed compliance manual
Important Compliance Deadlines (FY 2024-25)
| Compliance Type | Due Date |
|---|---|
| Income Tax Return (ITR) | 31st July (non-audit) / 31st October (audit required) |
| ROC Filing (AOC-4, Section 8) | Within 30 days of AGM |
| ROC Filing (MGT-7, Section 8) | Within 60 days of AGM |
| FCRA Return (FC-4) | 31st December |
| GST Filing | Monthly/Quarterly, as per turnover |
| TDS Filing | Quarterly |
| Director’s KYC (DIR-3 KYC) | 30th September |
Documents Required for NGO Compliance
Common Documents for All NGOs:
- Registration Certificate (Trust/Society/Section 8)
- PAN Card
- 12A & 80G Certificates
- Bank Statements (domestic & foreign if applicable)
- Books of Accounts & Ledgers
- Income & Expenditure Statement
- Balance Sheet & Receipts/Payments Account
- AGM/Board Meeting Minutes
- Annual Report & Audit Report
Additional for Section 8 Companies:
- Certificate of Incorporation, MOA/AOA
- Board Resolutions & Statutory Registers
- Director KYC (DIR-3)
- Financial Statements (AOC-4) & Annual Return (MGT-7)
- Director’s Report & AGM Proof
FCRA-Registered NGOs:
| Document | Purpose |
|---|---|
| FCRA Registration Certificate | Legal approval for foreign funding |
| FC Bank Account Statements | Track foreign contributions |
| Form FC-4 | Annual reporting to MHA |
| Utilization Certificates | Verify proper fund usage |
| Donor Details | Complete records for audits & reporting |
Annual Compliance Checklist
1. Income Tax Filing (ITR)
- Mandatory every year
- File ITR-7 for 12A/80G registered NGOs
- Avoid penalties & maintain exemptions
2. Maintaining Books of Accounts
- Records of receipts, payments, grants, donations, assets
- Bank reconciliations & expenditure tracking
- Supports audits and stakeholder transparency
3. Audit by Chartered Accountant
- Mandatory for NGOs exceeding basic exemption limit
- Required for 12A/FCRA compliance
- Audit report attached with FC-4/10B/10BB filings
4. Annual General Meeting (AGM)
- Conduct AGM within six months of FY end
- Approve financial statements, discuss future plans
- Maintain minutes and documentation
5. Filing Annual Report/Return
- Section 8: AOC-4 & MGT-7
- Societies/Trusts: Annual report submission
- FCRA: FC-4 filing
- Ensures legal and financial transparency
Special Compliance: FCRA, 12A, 80G & CSR
FCRA Compliance
- File Form FC-4 by 31st December
- Maintain separate FC bank account
- Use funds strictly as per approved purposes
- Submit Utilization Certificates & donor details
12A & 80G Compliance
- Maintain tax exemption & donor deduction benefits
- File ITR on time
- Use funds for charitable purposes only
- Submit Form 10B/10BB & donation receipts
- Renew certificates before expiry
CSR Compliance
- Register via Form CSR-1
- Report CSR funds in financial statements
- Maintain utilization & progress reports
- Ensure funds used as per corporate agreements
Operational Compliances
- GST Registration & Filing: Mandatory if turnover exceeds ₹20 lakh
- TDS Deduction & Filing: On salaries, professional fees, and contracts
- Professional Tax: For employed staff, state-specific
- PAN & TAN Updates: Maintain updated information in all filings
Costs of NGO Compliance
| Component | Estimated Cost (INR) |
|---|---|
| Audit Fees | 10,000–50,000+ |
| Tax & ROC Filings | 5,000–20,000 |
| 12A/80G Registration | 10,000–25,000 |
| FCRA Registration & FC-4 | 10,000 + 15,000 consultancy; ~10,000 annually |
Factors Affecting Costs:
- Legal Structure (Trust vs Section 8)
- Turnover & Foreign Funding
- Number of Registrations (FCRA, 12A, 80G, GST)
- Professional Service Fees
- State-Level Compliances
Balancing government fees and professional service charges ensures efficient use of NGO funds while remaining compliant.
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