Is statutory audit mandatory for a charitable trust?

Audit is mandatory under s.12A(1)(b) read with Rule 17BA of Income-tax Rules 2022 if the trust's total receipts (income + voluntary contributions) exceed ₹2.5 lakh in a financial year. The audit is conducted by a CA in practice and reported on Form 10B. Below ₹2.5 lakh, audit is not mandatory.

What is Form 10AB and when is it filed?

Form 10AB is the application for regular registration under s.12AB (5 years validity), filed at least 6 months before expiry of the provisional registration (3 years). It is also filed 6 months before expiry of regular registration for renewal. Post Finance Act 2020, all charitable trusts must undergo this 3 + 5 year cycle.

What is Form 10BD and 10BE?

Form 10BD is the annual statement of donations received under s.80G(5) — filed by 31 May of the next FY. Form 10BE is the donation certificate issued to donors — also by 31 May. Donors cannot claim 80G deduction if these forms are not filed.

How much of its income must a trust apply to charitable objects?

Under s.11(1), a trust must apply at least 85% of its income to charitable objects in India during the financial year of receipt. Up to 15% may be accumulated for future application. Accumulated income must be applied within 5 years (s.11(2)); otherwise, tax @ 15% applies under s.115TD.

What is the due date for filing ITR-5 for a trust?

31 October (non-audit case — trusts with receipts ≤ ₹2.5 lakh) or 30 November (audit case — most trusts above ₹2.5 lakh). For AY 2026-27, these dates apply per Finance Act 2025.

What is FCRA registration and when does it renew?

FCRA registration allows a trust / NGO to receive foreign donations. Valid for 5 years; renewal application Form FC-3 must be filed within 6 months before expiry. Post the 2020 amendment, foreign contribution can only be received in SBI Main Branch, New Delhi (single designated account).

What happens if a trust fails to file Form 10AB before expiry of 12AB provisional?

The registration lapses; the trust's income is taxed at the maximum marginal rate (30% + surcharge + cess); donors cannot claim 80G deduction; the trust must re-apply for fresh registration (Form 10A → 10AB cycle).

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

Form 10B is the audit report for trusts registered under s.12AB (or s.12A prior to 2021). Form 10BB is the audit report for entities approved under s.10(23C) (educational institutions, hospitals, etc.) — separate filing. Both are filed before ITR-5.

Editor's pickCompliance

Trust Annual Compliance

Trust Annual Compliance requires precise documentation and timely submission. I-Pro Solutions manages the complete workflow including charitable trust returns and.

Statutory basis: Indian Trusts Act, 1882 (private trusts).

Turnaround

7–14 Working Days

₹

Starts from

₹5,799

Money-back accuracy

Guaranteed

Total starting from

₹5,799

Professional fee (no government fee)

Professional fee₹5,799 starts with

Government fee (est.)No fee

Turnaround7–14 Working Days

Money-back accuracy. CA/CS specialist. Tracked client portal.

CONFIRMEDverified 25 Aug 2026

Dedicated specialist

CA-led, named point of contact

Tracked client portal

Real-time status, end-to-end

Money-back accuracy

Refile-free if our error

Flat-fee pricing

No hidden charges, ever

About this service

Trust Annual Compliance is a key regulatory filing administered by Charity Commissioner / Sub-Registrar of Assurances (state-level trust registration); CBDT (Income-tax — s.12AB / s.80G); Ministry of Home Affairs (FCRA).. Filing is executed via - **Form 10A** (provisional registration under s.12AB — 3 years validity; filed at trust registration). under Indian Trusts Act, 1882 (private trusts); State Public Trusts Acts — Bombay Public Trusts Act, 1950 (Maharashtra); Karnataka Hindu Religious Institutions and Charitable Endowments Act, 1997; Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959; Gujarat Public Trusts Act; Income-tax Act, 1961 — **Section 12A** (registration of charitable trust — replaced by s.12AB w.e.f. AY 2021-22); **Section 12AB** (registration procedure — provisional 3 years + regular 5 years under Finance Act 2020); **Section 80G** (donor tax deduction — Form 10A/10AB); **Section 11** (exemption of income applied to charitable purposes); Section 13 (violation — denial of exemption); Section 115TD (tax on accumulated income — 15% on unapplied income); Section 115TF (TDS — 30% on conversion of trust into non-charitable form); FCRA 2010 (Foreign Contribution Regulation Act) — Form FC-3 (registration / renewal — every 5 years); FCRA Rules 2011; Form FC-4 (annual return — by 31 December).. Our specialist-led team ensures full compliance with statutory documentation, eligibility verification, and expedited government approval.

Eligibility & thresholds

Minimum

Valid identity & address proof of applicant
Active PAN & registered business premises
Authorized representative authorization

Maximum

Compliant under applicable regulatory laws
No pending statutory disqualifications
Valid across authorized operational jurisdictions

Statutory floor

Pre-filing statutory documentation verification
Official statutory fee schedule as per authority
Mandatory periodic compliance filings post-approval

What's included

Everything in one transparent fee — no add-ons, no surprises.

Investor-Centric AOA Drafting

If you plan to raise institutional funding, standard Articles of Association (AOA) will not suffice. Venture capitalists demand specific clauses regarding right of first refusal (ROFR), tag-along/drag-along rights, and anti-dilution provisions. Our elite corporate lawyers draft sophisticated AOAs that anticipate future funding rounds, preventing costly and time-consuming structural overhauls when you secure term sheets.

Complex Multi-Founder Structuring

Co-founder disputes are the leading cause of early-stage startup failure. We don't just register your company; we advise on optimal equity splits, director roles, and authorized capital distribution. We provide templates for Co-Founder Agreements and vesting schedules, ensuring that the foundational relationship between partners is legally documented and aligned for long-term stability.

Rapid SPICe+ Processing Engine

Time is of the essence for startups. We utilize an advanced compliance engine that preemptively validates all data entered into the SPICe+ (INC-32) form. By cross-referencing PAN databases, checking DIN eligibility, and formatting registered office proofs perfectly, we eliminate typographical errors that typically cause frustrating ROC resubmission delays, ensuring first-pass approval.

Strategic Authorized Capital Advisory

Determining your initial Authorized Share Capital is a delicate balance. Set it too low, and you'll immediately face high fees to increase it during your first seed round. Set it too high, and you pay unnecessary upfront government stamp duty. We analyze your 12-to-18-month funding roadmap to recommend the exact optimal capital structure that minimizes immediate costs while accommodating your immediate growth.

ESOP Implementation Framework

Attracting top-tier talent in the startup ecosystem often requires offering Employee Stock Ownership Plans. A Private Limited Company is the only structure that efficiently supports this. As part of our premium advisory, we structure your initial cap table to accommodate a future ESOP pool seamlessly, ensuring you are ready to incentivize your founding team.

Comprehensive Post-Incorporation Toolkit

Receiving the Certificate of Incorporation is just the starting line. Within the first 30 to 180 days, you must open a bank account, appoint a statutory auditor (ADT-1), and file the Commencement of Business (INC-20A). We provide a complete post-incorporation execution service, handling these mandatory compliance milestones so you can focus entirely on product development and sales.

Government Fee Breakdown

Government charges only — separate from I-Pro's professional fee. All figures verified as of 25 August 2026.

Fee Component	Amount (₹)	Basis / Authority
Trust Annual Compliance Statutory Filing	₹0 (No government fee)	Government fee is Nil / exempted under applicable statutory rulesOfficial Regulator
Total Government Fee	No fee	(for default assumptions stated below)

Government charges only — separate from I-Pro's professional fee. Verified 25 August 2026.

Required documents

Each list identifies exactly what to provide — and what you do not need to submit. Use the accordions to expand.

›Audited financial statements (Balance Sheet, Income & Expenditure Account, Receipts & Payments Accou — Audited financial statements (Balance Sheet, Income & Expenditure Account, Receipts & Payments Account);
›Trust deed (registered copy with Sub-Registrar); — Trust deed (registered copy with Sub-Registrar);
›**Form 10B audit report** under s.12A(1) — **Form 10B audit report** under s.12A(1)
›read with Rule 17BA — by CA in practice; — read with Rule 17BA — by CA in practice;
›**Form ITR-5** income-tax return; — **Form ITR-5** income-tax return;
›**Form 10BD** (donations under 80G — by 31 May); — **Form 10BD** (donations under 80G — by 31 May);
›**Form 10BE** (donation certificate to donors — by 31 May); — **Form 10BE** (donation certificate to donors — by 31 May);
›State PTA annual return (e.g. Schedule VIII for Maharashtra trusts — by 31 March); — State PTA annual return (e.g. Schedule VIII for Maharashtra trusts — by 31 March);
›FC-4 (annual FCRA return — by 31 December, if FCRA registered); — FC-4 (annual FCRA return — by 31 December, if FCRA registered);
›Trustee resolutions authorising filings. — Trustee resolutions authorising filings.

How it works

Each step is labelled with who performs it — Customer, I-Pro, or the Regulator. Form names are linked to the official portal.

1
Customer⏱ Day 1
Requirement Review & Eligibility Check
Initial consultation to verify statutory eligibility and compile required prerequisites.
2
I-Pro⏱ Day 1–2
Document Verification & Pre-Scrutiny
Comprehensive audit of applicant KYC, business records, and address proofs.
3
I-Pro⏱ Day 2–3
Statutory Form Preparation & Drafting
Drafting official application forms, affidavits, and supporting declarations.
4
I-Pro⏱ Day 3–4
Submission on Competent Portal
Electronic filing on official department portal with fee payment and receipt generation.
5
Regulator⏱ Day 4–7
Authority Scrutiny & Liaison
Tracking department scrutiny, responding to officer queries, and milestone alerts.
6
Government⏱ Day 7–10
Final Approval & Certificate Delivery
Official statutory certificate delivery along with ongoing compliance guidance.

Post-registration compliance

What to file next. I-Pro handles these as part of the annual compliance package.

Filing	Form	Deadline
Commencement of Business (Form INC-20A) Penalty: ₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)	`One-time mandatory`	Within 180 days of incorporation after bank capital deposit
First Auditor Appointment (Form ADT-1) Penalty: Statutory non-compliance; prosecution of defaulting officers	`5-year tenure`	Within 30 days of incorporation by Board of Directors
Annual Financial Statements (Form AOC-4) Penalty: ₹100 per day of delay per form with no statutory ceiling	`Annual`	Within 30 days of AGM (by 29 October annually)
Annual Return (Form MGT-7) Penalty: ₹100 per day of delay per form with no statutory ceiling	`Annual`	Within 60 days of AGM (by 29 November annually)
Director KYC Verification (DIR-3 KYC) Penalty: ₹5,000 statutory fee per DIN + deactivation	`Annual`	Every designated partner / director holding active DIN by 30 September

Penalties for non-compliance

Statutory penalties under governing regulatory provisions. Avoid non-compliance delays.

Non-compliance	Provision	Penalty
Commencement of Business (Form INC-20A)	One-time mandatory	₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)
First Auditor Appointment (Form ADT-1)	5-year tenure	Statutory non-compliance; prosecution of defaulting officers
Annual Financial Statements (Form AOC-4)	Annual	₹100 per day of delay per form with no statutory ceiling
Annual Return (Form MGT-7)	Annual	₹100 per day of delay per form with no statutory ceiling
Director KYC Verification (DIR-3 KYC)	Annual	₹5,000 statutory fee per DIN + deactivation

Common mistakes to avoid

Avoidable filing errors that cause delays or rejection. Each can be resolved before submission.

1
Mismatched applicant legal name or identity details across KYC proofs
Why: Government verification APIs cross-check with UIDAI and MCA databases and automatically flag discrepancies in spelling or dates.
Fix: Our specialists pre-validate your documents against official government databases before portal filing.
2
Submitting outdated utility bills or non-notarized commercial leases
Why: Premises proofs older than 60 days or defective landlord NOCs trigger statutory scrutiny queries and multi-week processing delays.
Fix: We verify recent billing dates and provide pre-formatted, legally vetted landlord NOC and lease formats.
3
Selecting incorrect classification, turnover slab, or statutory activity code
Why: Applications filed under inappropriate classifications attract show-cause notices and potential rejection without statutory fee refund.
Fix: We conduct a statutory scope assessment to align your application with the exact regulatory requirements.

Frequently asked questions

Everything you need to know about this service.

Client feedback

What clients say

Real reviews from founders, finance leads and operators who used our Trust Annual Compliance service.

No reviews yet

Be the first to share your experience with Trust Annual Compliance.

Recommended Bundles

Instead of buying these services separately, get them together as a package.

Premium

Full Secretarial Premium Pack

Annual + ROC + Secretarial audit + Statutory audit + Sec-8 compliance + Strike-off — complete corporate secretarial suite.

Individual Total₹79,993

Bundle Price₹66,275

You save ₹13,719 (20%)

What's included

Get Started →

Growth

Director Changes Growth Pack

Director changes + KYC + Office change + Capital increase + Annual compliance.

Individual Total₹29,194

Bundle Price₹25,460

You save ₹3,735 (15%)

What's included

Get Started →

Starter

Annual Compliance Starter Pack

Annual compliance + ROC filings + DIR-3 KYC + Statutory audit — minimum annual must-dos.

Individual Total₹32,695

Bundle Price₹29,576

You save ₹3,120 (10%)

What's included

Get Started →

All Services More in Compliance