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Annual Compliance of Trust, Society, Section 8 Company

Know the minimum annual compliances to be followed by a Trust, Society or Section 8 company

    Trust, Society, Section 8 Company

    People have a general idea that Non-Government entities like Trusts, Societies, Section 8 Companies have very less or rather no annual compliance to follow. However, it is not true.

    Annual Report and the updated List of the members of Governing Body

    An annual report can be an in-depth and comprehensive report on the activities carried out by the NGO during the previous year. It basically outlines the accomplishments made by the organization.

    Income Tax Returns

    It is mandatory for a trust referred to in Sections 139(4A), 139(4C), 139(4D) and 139(4E) to file the return of income.

    Further, a trust (not covered in above provision) is required to file return of income if its gross total income exceeds the maximum amount which is not chargeable to tax.
    A trust who is required to furnish return of income in accordance with provision of Sections 139(4A), 139(4C), 139(4D) and 139(4E) shall file its return of income in ITR 7 otherwise in ITR 5.
    The due date for filing ITR by a trust who is required to get its accounts audited under the Income-tax Act or under any other law is 31st October. In case the trust is required to furnish a report in Form No. 3CEB under section 92E, the due date comes to 30th November. In any other case it is 31st July of the assessment year.
    The due date for filing ITR by aSection 8 company or a Charitable Society is 30th September.

    Compliance under the FCRA, 2010

    Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donation from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. After obtaining registration, the Trusts, Societies, Section 8 Companies have to comply with the Rules and regulations as applicable to them under the Act.

    Financial Statements

    The financial statements of a Section 8 Company shall be filed in the appropriate form (AOC-4), within 30 days from the date of annual general meeting,

    Annual Return

    The annual return containing all the information like management details, shareholders’ details will be filed in Form MGT-7 with Registrar of Companies (ROC), within 60 days from the date of the annual general meeting.