Audit under the Trust Act — Trusts, NGOs & Section 8 Companies
Statutory audit for public and private trusts, charitable organisations, NGOs and Section 8 companies — Charity Commissioner-ready reports and full compliance with Sections 12A, 12AB and 80G of the Income Tax Act.
A trust audit is the independent examination of a charitable or private trust's accounts — mandatory under the Indian Trusts Act, 1882 (for private trusts) and state-level public trust legislation (e.g., Maharashtra Public Trusts Act, 1950). Additionally, trusts and NGOs registered under Sections 12A / 12AB of the Income Tax Act must get their accounts audited and file Form 10B or 10BB to claim exemption on income applied to charitable purposes. Failure to audit results in the trust losing its tax-exempt status and becoming taxable on all income. The Classic Partners LLP conducts trust audits end-to-end — including Charity Commissioner submissions and annual Income Tax compliance.
Trust audit that protects your tax-exempt status and donor credibility
A trust's audit is not just a legal formality — it is the document that preserves your 12A/12AB exemption, underpins your 80G donation receipts and gives donors, CSR committees and government grant bodies confidence in your financial stewardship.
We examine receipts and payments, corpus fund usage, investment compliance, related-party transactions, application of income and the critical question of whether the trust's activities remain within its stated charitable objects. The signed audit report is prepared for Charity Commissioner submission and Income Tax portal filing (Form 10B/10BB) by the relevant deadline.
- Applicable to all registered public trusts, private trusts and charitable organisations
- Income Tax Act Sections 12A/12AB and 80G compliance verified
- Form 10B (turnover ≤ ₹5 crore) or Form 10BB (turnover > ₹5 crore)
- Charity Commissioner-ready report and annual statement
- Application of income test — at least 85% of income applied to objects
- Corpus fund segregation, investment pattern and Section 11(5) compliance
When does a trust need an audit?
Key triggers under trust law and the Income Tax Act.
| Requirement | Trigger | Authority / form |
|---|---|---|
| Public trust audit | Every registered public trust — mandatory regardless of income | Maharashtra Public Trusts Act / state charity law |
| Section 12A/12AB audit | Trust income exceeds basic exemption limit (₹2.5 lakh) before exemption | Income Tax Act — Form 10B or 10BB |
| Section 12A(b) compliance | Accounts must be maintained and audited to retain 12A registration | Income Tax Act |
| 80G donor receipts | Trust must be audited to remain eligible to issue 80G donation receipts to donors | Income Tax Act — Sections 80G / 80GGA |
| FCRA audit | NGOs receiving foreign contributions under FCRA must file an annual return with audited accounts | FCRA, 2010 — Form FC-4 |
| Section 8 company audit | Companies incorporated under Section 8 (not-for-profit) are subject to Companies Act statutory audit regardless of income | Companies Act, 2013 |
Not sure which form or law applies to your trust? Send us your details — we'll confirm in one call.
What our trust audit covers
From receipts-and-payments to Charity Commissioner submissions — all in one engagement.
Receipts & Payments Audit
Verification of all income sources — donations, grants, corpus receipts, interest and programme income — against bank statements and supporting vouchers.
Application of Income Test
Verification that at least 85% of income earned has been applied to the charitable objects of the trust in the same year or lawfully accumulated.
Corpus Fund Segregation
Confirmation that corpus donations are kept separate, invested in specified modes under Section 11(5) and not treated as income applied.
Form 10B / 10BB Filing
Preparation and portal filing of the audit report in the prescribed form — Form 10B for trusts with turnover up to ₹5 crore; Form 10BB above.
Charity Commissioner Report
Annual accounts and audit report in the format required by the Maharashtra Charity Commissioner (or relevant state authority) — filed by the prescribed due date.
FCRA Compliance Support
Audited accounts for FCRA annual return (Form FC-4), foreign contribution register verification and FCRA bank account reconciliation for NGOs receiving foreign funds.
Our four-stage trust audit process
Structured around the Charity Commissioner and Income Tax filing calendars.
Scoping & data request
Engagement letter, tailored document checklist — trust deed, registration certificate, prior-year accounts, donor records and bank statements.
Substantive testing
Receipts-and-payments verification, application-of-income calculation, corpus fund check, investment mode review and related-party transaction scrutiny.
Report preparation
Audit report in the prescribed format, draft Form 10B/10BB, Charity Commissioner annual statement — reviewed with trustees before sign-off.
Filing & submissions
Form 10B/10BB uploaded on Income Tax portal; Charity Commissioner filing coordinated; management letter with compliance gaps issued.
Trust audit that keeps your exemption intact
Partner-led, fixed-fee and familiar with the Charity Commissioner's requirements.
12A/12AB expertise
We understand the application-of-income test, accumulation provisions and the implications of a failed audit on your tax-exempt status.
Charity Commissioner filing
Maharashtra-specific Charity Commissioner submissions handled in the correct format — no back-and-forth between auditor and trustees.
FCRA compliance
NGOs receiving foreign contributions get FCRA account reconciliation and Form FC-4 support alongside the statutory trust audit.
Fixed fee, written upfront
A written quote after the scoping call — no hourly billing and no end-of-year surprises for trustees managing tight budgets.
80G donor-receipt protection
We flag anything that could jeopardise your 80G status — so your donors keep their deduction and you keep their trust.
Integrated tax support
Trust ITR (ITR-7), TDS compliance and CSR grant reporting handled by the same team — one point of contact for all filings.
Trust audit questions trustees and NGO managers ask us
Need your trust audit done before the Charity Commissioner deadline?
Tell us your trust type, annual receipts and the state of registration. You'll get a fixed quote and a partner-level contact within one working day.
