Non-governmental organizations (NGOs) and trusts have unique income tax requirements, and it’s crucial to file accurately to maintain tax exemptions. This guide covers how trusts and NGOs can file their income tax returns in India.
Eligibility and Documentation
NGOs registered under Sections 12A and 80G are eligible for tax exemptions. The primary documents required include financial statements, registration certificates, and donation receipts.
Filing Process for Trusts and NGOs
- Choose the Right Form: Typically, NGOs file ITR-7.
- Declare Income Sources: Include donations, grants, and other sources of income.
- Report Exemptions and Expenses: Accurately report expenses related to charitable activities, as they may impact tax liability.
For NGOs, the “Best CA Firm in Delhi” can provide guidance on maintaining compliance and maximizing tax benefits.
