Annual compliance for NGOs in India involves fulfilling legal and regulatory requirements to maintain the NGO's legal status, transparency, and accountability. The specific compliance obligations may vary based on the legal structure of your NGO (society, trust, or Section 8 company) and the laws applicable in your state. Here's a general overview of annual compliance for registered NGOs in India:
1. **Financial Statements:**
Prepare and maintain accurate financial statements, including income and expenditure statements, balance sheets, and cash flow statements.
2. **Audit Requirements:**
Depending on the nature of your NGO and its funding, you may need to conduct annual audits by a qualified chartered accountant. This audit report will be submitted to the relevant authorities.
3. **Annual Return Filing:**
Submit annual returns to the appropriate authority based on your NGO's legal structure:
– For societies: File an annual return with the Registrar of Societies.
– For trusts: Submit an annual statement with the relevant income tax authorities.
– For Section 8 companies: File annual returns with the Registrar of Companies (ROC) and income tax authorities.
4. **Income Tax Returns:**
File income tax returns using Form ITR-7, which is designed for NGOs. This is necessary to maintain your NGO's tax-exempt status.
5. **FCRA Compliance:**
If your NGO receives foreign contributions, comply with the Foreign Contribution (Regulation) Act (FCRA) requirements, including annual returns and audits.
6. **80G and 12A Renewal:**
If your NGO has obtained 80G or 12A certification for tax exemptions, ensure timely renewal of these certifications to continue offering tax benefits to donors.
7. **Board Meetings and Minutes:**
Hold regular board meetings as required by your NGO's governing documents. Maintain accurate minutes of these meetings.
8. **Annual Report:**
Prepare an annual report detailing your NGO's activities, achievements, financials