Document Required for filing Tax Audit and ITR & for registration under 12A and 80G (of Charitable/ Religious Institution)

Are you running a Charitable organisation and need to get it audited? Confused on what all documents are required? Read below to know more.

Document Required for filing Tax Audit and ITR & for registration under 12A and 80G (of Charitable/ Religious Institution)

So, when does a charitable organization needs to get audited?

Income of a trust or institution is allowed exemption under sections 11 and 12 of Income-tax Act, 1961. To avail the exemption, such trusts or institutions are required to satisfy the conditions prescribed u/s 12AB.

One of such condition is, where the total income of the trust or institution as computed under this Act without giving effect to the provisions of Section 11 and Section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have been audited by an accountant.

So, Summarising: If you have to claim the exemption of Sec 11 and 12 and before giving effect of Sec 11 and 12 the income crosses 2.5l, audit has to be done.

Now what does an auditor require to audit the trust? The documents so required are mentioned below:

1. Books of accounts (ERP/ Tally/ SAP backup). The books should provide:

   
   

   1. Balance Sheet.

   2. Income and Expenditure Account

   3. Receipts and Payments Account

      
      

2. To vouch the accuracy of the expenses & payments:

   
   

   1. Bank payment advice and Bank statement

   2. Expense invoices etc.

      
      

3. With regards to donations & receipts, details needed are:

   
   

   1. The details of anonymous donations

   2. Doner register (Which contains Name, PAN, Address, Mode of donation and Amount of donation of each doner)

   3. Details of any ancillary business done from the Trust.

   4. Note: the donations have to be bifurcated between

      1. Donation from Government

      2. Donation under CSR

      3. Any specific grant or

      4. General donation

         for both domestic & foreign contributions separately.

         
         

4. To check the existence of assets: 

   
   

   1. Fixed Asset register.

   2. Purchase invoice of all the new assets.

   3. Depreciation workings.

      
      

5. Governing Body details:

   
   

   1. Details of all the members (Name, Address (Inc Pin code), Mail ID, Ph No., PAN, Aadhar Number)

   2. Minutes of all the meetings

      
      

6. Login credentials:

   
   

   1. IT PAN Login

   2. IT TAN Login, If any

   3. IT Traces Login, If any

   4. GST Login cred, If any

      
      

7. Permanent documents:

   
   

   1. Copy of the Trust Deed/bye-laws/Memorandum of Articles

   2. Financials and Computation of previous three years.

   3. Registration certificate for registration under DARPAN, FCRA, CSR, 12A, 80G Etc.

      
      

The above is just the preliminary requirements, the detailed requirement shall be asked once the above data is received and analyzed.

The points as mentioned from 2 to 7 are needed for registration under 12A and 80G.

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Regards

CA Umang Jain

Harshpreet Singh

+ 91 96323-32850

umang@caumang.com

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