Clarification about filing NGO Tax Return

Dear sir,

Our NGO registered under societies Act is working since 2005 , We does not take any financial contribution. NGO activities mostly related to awareness building and advocating efficient water use practices & educating primary class students and village farmers about economic use of water. we also give our suggestions to Govt & local bodies on the issues related to water.

our yearly income from personal contribution by members & supporters remains under Rs.50000/-& all expenses are vetted and approved in general body meeting.

Presently we are filling our work report with annual balance sheet to Collector & Registrar of Societies

Do we require to file a tax return ? and to apply for PAN & to get audit our balance sheet through a CA.

please advice.


Resource Person -Waterpeople
Water Resource Consultancy firm
45-A-Subash Nagar
Ajmer Road

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5 Responses to Clarification about filing NGO Tax Return

  1. earanna s p says:

    sir filling of it return is good for ngo so that u can get 80g application in future. it is advisable to get pan and furnish return

  2. Subhash Mittal says:

    I think Deepak Bansal has covered the issue not only adequately and precisely. Hope this would help all those who had doubts on applicability of Income Tax on NGOs.

  3. Dhiraj Satnalika says:

    Every organization which is registered with Income Tax Department u/s. 12A to avail tax exemption, need to file e-Return (ITR-7) compulsory along with audit report.

    Not only, Income Tax Return, but Audit Report and all the annexed statements must be filled in e-Format along with e-Return.

    Thus, you need to apply for PAN also.


    Dhiraj Satnalika

  4. Amitra Sudan Chakrabortty says:

    no, return is not compulsory but it is advisable to file return, get PAN and get the accounts audited by the CA for availabling several benefits in future.

    Amitra Sudan Chakrabortty
    B.Com(Hons), LL.M, Ph.D(pursuing)
    Assistant Professor of Law
    Glocal School of Legal Studies and Research
    The Glocal University
    Saharanpur, Uttar Pradesh

  5. Deepak Bansal says:

    Dear Sir

    The Income of a society / trust is exempt from Income tax only if the Society is registered u/s 12AA of Income Tax act 1961.

    In cases , where society is not registered u/s 12AA, it is treated as AOP and then marginal rate of Tax @30% is charged on the net surplus arising from its activities and in this case filing of IT return ( u/s 139(1) is must irrespective of any monetary ceiling.

    Though in some cases, some courts had held that tax rate @ 30% shall become applicable only on the income over and above Rs. 2lacs ( i.e. tax exemption limit available to an individual).

    Regarding the audit , you pl. refer back to your Bye laws, there should be a clause which stipulates that each year ending 31st March , accounts should be audited.

    I hope that your query is adequately responded.

    Deepak Bansal
    Subhash Mittal & Associates
    Chartered Accountants
    512 A, Deepshikha Building,
    8 Rajendra Place, New Delhi – 110008.

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