What are Maharashtra Charity Commissioner audit requirements?

Trusts with annual income above ₹5,000 must get accounts audited by a CA and file with the Charity Commissioner within 6 months of the financial year end through the Maharashtra Public Trust portal.

Audit of Trusts — Trust Act and Income Tax Act

Q: Is audit mandatory for a charitable trust registered under Section 12A?

Yes, if total income before exemption exceeds the basic exemption limit. The audit report in Form 10B or 10BB must be filed before 31 October of the assessment year.

Q: What is the difference between Form 10B and Form 10BB?

Form 10B is for trusts with total income above ₹5 crore, foreign contributions, or large accumulations. Form 10BB is for all other trusts. Both are certified by a CA and filed online.

Q: What is the 85% application of income requirement?

A charitable trust must apply at least 85% of its income to charitable purposes in India to claim Section 11 exemption. Up to 15% can be accumulated. Further accumulation for 5 years is possible via Form 10 under Section 11(2).

Q: What happens if a trust's accounts are not audited?

The trust may lose Section 11 tax exemption for the year, face Section 271B penalty, and risk cancellation of 12A/12AB registration. State Act non-compliance may also attract penalties and affect registration renewals.

Charitable trusts, religious trusts, educational institutions, and other public trusts are subject to specific audit requirements under state Trust Acts, the Income Tax Act, and the Charity Commissioner's regulations. We provide complete trust audit services ensuring your organisation retains its tax-exempt status, meets Charity Commissioner obligations, and maintains the highest standards of financial accountability.

Trust Audit (Section 12A/12AB)

Audit of income and expenditure accounts of charitable and religious trusts registered under Section 12A/12AB of the Income Tax Act, required for claiming tax exemption under Section 11.

Form 10B / 10BB Filing

Preparation and certification of Form 10B (for trusts with income above ₹5 crore or with FCRA registration or foreign income) and Form 10BB for other trusts, filed along with the income tax return.

Charity Commissioner Audit

Preparation and submission of annual accounts and audit report with the Charity Commissioner under state Public Trusts Acts (such as the Maharashtra Public Trusts Act, 1950).

Application of Income Verification

Verifying that the trust has applied at least 85% of its income to charitable or religious purposes in India as required under Section 11 to maintain tax exemption status.

FCRA Compliance Audit

Special audit for trusts receiving foreign contributions under FCRA, ensuring compliance with the Foreign Contribution (Regulation) Act, 2010 and timely filing of FC-4 annual returns.

80G Compliance Verification

Verification that the trust's activities and accounts comply with conditions for 80G approval, enabling donors to claim income tax deductions on contributions made to the trust.

What is a Trust Audit?

A trust audit is an independent examination of a trust's financial accounts by a Chartered Accountant to verify that income has been correctly disclosed, funds have been applied for the stated charitable or religious objectives, and all statutory requirements have been met. Trust audits cover two main dimensions: the income tax audit requirements under the Income Tax Act for trusts claiming Section 11 exemption, and the Charity Commissioner audit requirements under applicable state Trust Acts.

Trust audits are also closely connected to income tax audits, 12A/12AB registration maintenance, and Companies Act audits where trusts operate through Section 8 companies. The audit report is a prerequisite for filing the trust's income tax return and for annual submissions to the Charity Commissioner.

Which Trusts Require Mandatory Audit?

Charitable and religious trusts registered under Section 12A/12AB of the Income Tax Act claiming exemption under Section 11
Trusts with total income exceeding the basic exemption limit before application of exemption under Section 11
Trusts registered under state Public Trusts Acts (Maharashtra, Gujarat, Rajasthan, Karnataka, etc.) for Charity Commissioner compliance
Trusts registered under FCRA receiving foreign contributions — mandatory audit and FC-4 filing
Educational institutions, hospitals, and research institutions claiming exemption under Section 10(23C)
Trusts with Darpan registration for government grants and CSR funding

Why Choose Us for Trust Audit Services?

Our team has extensive experience in trust audits across charitable trusts, religious institutions, educational bodies, and NGOs. We handle the full compliance cycle — from Form 10B/10BB preparation and income tax return filing to Charity Commissioner submissions and FCRA returns — ensuring your trust remains compliant and retains its exemptions and registrations.

If you are searching for "trust audit services in India" or "Section 12A trust audit and compliance," we provide comprehensive, end-to-end support that protects your trust's tax-exempt status and governance standing.

Frequently Asked Questions

Is audit mandatory for a charitable trust registered under Section 12A?

Yes. A charitable or religious trust registered under Section 12A/12AB that claims exemption under Section 11 must get its accounts audited if its total income before claiming exemption exceeds the basic exemption limit (₹2.5 lakhs). The audit must be conducted by a Chartered Accountant and the audit report in Form 10B or Form 10BB must be filed before the due date of the income tax return — typically 31 October of the assessment year.

What is the difference between Form 10B and Form 10BB?

Form 10B is the audit report for trusts or institutions that have total income exceeding ₹5 crore, or that have received foreign contributions during the year, or that have applied for accumulation of income exceeding ₹1 crore under Section 11(2). Form 10BB is a simpler audit report for all other trusts that do not meet these criteria. Both forms must be certified by a Chartered Accountant and filed online through the Income Tax e-filing portal.

What is the 85% application of income requirement for trusts?

Under Section 11 of the Income Tax Act, a charitable trust must apply at least 85% of its income to charitable or religious purposes in India during the financial year to claim tax exemption on that income. If less than 85% is applied, the unapplied portion is taxable. Trusts that cannot apply 85% in the current year may accumulate up to 15% automatically, and can apply for further accumulation under Section 11(2) for up to 5 years by filing Form 10 with the Income Tax Department.

What are the Charity Commissioner audit requirements for trusts in Maharashtra?

Under the Maharashtra Public Trusts Act, 1950, trusts with gross annual income above ₹5,000 must get their accounts audited annually by a Chartered Accountant or a person authorised by the Charity Commissioner. The audited accounts along with the audit report must be filed with the Charity Commissioner's office within 6 months of the end of the financial year. Trusts with income above certain thresholds must also submit the accounts to the Charity Commissioner online through the Maharashtra government's Public Trust portal.

What happens if a trust's accounts are not audited as required?

Failure to audit trust accounts and file the required forms can have serious consequences: the trust may lose its Section 11 tax exemption for the relevant year, making all income taxable at maximum marginal rate. The trust may also face penalty under Section 271B of the Income Tax Act and potential cancellation of its 12A/12AB registration. For Charity Commissioner non-compliance, the trust may face penalties under the applicable state Trust Act and difficulties in renewal of registrations or certificates.

Keep Your Trust Compliant and Tax-Exempt

Complete trust audit services — Form 10B/10BB, Charity Commissioner filings, and FCRA compliance — all under one roof.

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F.A.Q.

What is GSTR-9 and why is it required?

GSTR-9 is an annual GST return that summarizes all transactions reported during the financial year. It is required to ensure proper reconciliation and compliance with GST laws.

Who is required to file GSTR-9?

All regular GST-registered taxpayers are required to file GSTR-9, except composition dealers, casual taxable persons, and non-resident taxpayers.

What is the due date for filing GSTR-9?

The due date is generally 31st December following the end of the relevant financial year, unless extended by the government.

What details are included in GSTR-9?

It includes details of outward supplies, inward supplies, input tax credit claimed, taxes paid, and adjustments made during the year.

Is GSTR-9 mandatory for all taxpayers?

GSTR-9 is mandatory for most regular taxpayers, but certain small taxpayers may get exemptions based on turnover thresholds notified by the government.

What happens if GSTR-9 is not filed on time?

Late filing may result in penalties and late fees, along with potential compliance issues or notices from GST authorities.