ITR of Ngos

We make Income tax return filing very easy and simplified.

Running your NGO? Now, file your NGO’s Income Tax return with the help of Chartered Accountants who are Experts in Income Tax Law. Being a Trustee/Member/director of the NGO comes under your obligation under the Income Tax Act, 1961. You may have lots of confusion as it involves taxation aspect of your Non-Profit Organization. Request a call back here

At Compliance Calendar LLP, Chartered Accountants are qualified to resolve any query related to ITR filing, notice and other query related to Income tax. For any query or problem, you may have, our experts who will assess your NGO workings and advise you for your tax return issues.

E-mail us PAN and Financials at info@ccoffice.in

For inquiries, WhatsApp/Call us on 99 88 42 42 11

Income Tax Return is nothing but a prescribed form through which the particulars of income earned by a person (here in you case person means NGO) in a financial year and tax payable on such income is communicated to the Income tax department after the end of the relevant financial year.

The forms used to file details of income taxes payable and Paid with Government are known as Income Tax Returns. Income tax return forms are provided for different assessesee by the IT department. It is also a complete online procedure where you need not submit any physical form to the department.

The Central Board of Direct Taxes (CBDT) has made it mandatory to file Income Tax Returns for all NGOs irrespective of their income or loss. ITR-7 is prescribed form of ITR through which the particulars of NGO in a financial year is communicated to the Income tax department after the end of the relevant financial year.

Let us help you understand ITR filing for NGO in simple words:

An NGO has to file ITR-7 at the end of the relevant financial year.

Income Tax Return Form 7 or ITR 7 is an income tax return form that is to be submitted by tax assesses who are required to file returns under key sub-sections of Section 139 of the Income Tax Act, 1961.

ITR-7 is a form filed by those individuals and companies that fall under the following sections:

Section 139 (4A)
Section 139 (4B)
Section 139 (4C)
Section 139 (4D)

Taxpayers who are not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C) or Section 139 (4D) are not liable to file ITR-7 Form for Income Tax Return.

Online Tax returns are set up in an excel worksheet & Java Formats, where the income figures are used to calculate the tax liability of persons. Tax returns are to filed every year by NGO. We are here to help you to file ITR-7 to the Income tax department. Let our team of Chartered Accountants help you in filing your NGO Tax Returns.

Documents Required for ITR of Ngos

For filing Income Tax returns of your NGO, we need from you the accurate information on workings and TDS paid. Here is a checklist of what we need for e-Filing your Income Tax returns:

Financials: We need financials of your NGO to get accurate information.
Form 26 AS: If your NGO have previously filed ITR, we can access the same from Income Tax Login if you have login credentials. Form 26AS can also be downloaded through net banking if PAN is mapped to that particular account.
Details of bank accounts: We need bank account detail including the IFSC Codes. It is mandatory to give the details of all the bank account of NGO for filing income tax returns ITR-7.
It is important to note that no document should be provided with the return form when you file the ITR 7 Form. If such documents are attached to the ITR Form 7, they will be removed and handed back to you. You must match the amount of tax deducted, paid, or collected by you or on your behalf with the Tax Credit Statement in Form 26AS.

Legal Procedures for ITR of Ngos

Below are the Steps for e-Filing of Income Tax Return for NGO:

You submit all the required details and documents to us.
Our Compliance Manager (Chartered Accountant) will understand your NGO tax implication and liabilities over phone or video call.
Preparation of the Income Tax Return after discussing all the points in detail.
Filing of Income Tax Return with the Income Tax Department on your behalf.
On successful submission for form, ITR-V would be displayed.
Click on the link to download the ITR-V.
ITR-V will also be sent to the registered email.
E-verify the Income Tax Return by various methods available by looking at the most feasible one for you.
CCL Team will also send you the computation of income for your understanding.

Features & Benefits for ITR of Ngos

You must have heard or seen many advertisements which encourages the NGO to file the income tax return with the department. But wait, what is the benefit of filing the same. Well, here are the answer which will enlighten your knowledge and encourage you to file your NGO income tax return with the department. Some of them are given below:

Law Compliant NGO: The first and one of the most important benefits of filing of income tax returns is that, it ensures that the NGO is compliant with the Indian Income tax laws. By staying within the time lines, the NGO would be able to manage his financial affairs effectively.
Loan Requirement: If a loan (Term Loan or Working Capital Loan) is required to be obtained from any bank or financial institution, the tax returns would be required to prove the ability of the NGO to repay the loans. It also becomes a proof that the NGO have a regular income and have paid taxes on it and then Banks and other Financial Institutions feel comfortable in giving your NGO a loan of any nature including cash credit.
To get refund on excess tax paid (if any): If your NGO’s TDS has been deducted more than its tax liability, it becomes very important that your NGO file tax returns to claim tax refunds. Without filing the ITR, the Income Tax Department shall not issue tax refunds. Excess taxes paid by any NGO either by way of TDS on Fixed Deposit Interests, any other Tax Deductions or advance/self-assessment tax can be refunded only by filing income tax returns.
To carry forward the Loss: If your NGO have sustained a loss under the head “Capital Gains”, your NGO can carry forward the loss only if your NGO file the Income Tax Return by the due date. Therefore, if your NGO have sustained a loss, you must file the Income Tax Return of the NGO in time if you want to carry forward the loss for future adjustment with your NGO Income. If your NGO have any capital loss, you can carry it forward for the next eight consecutive financial years.
To avoid penalty: If you do not file your Income Tax Return, the Income Tax Department may impose a penalty. If your NGO do not file the Income Tax Return by the due date, you are liable to pay interest as well payable for every month after the due date till the date of filing the return.

Frequently Asked Questions

What is Income Tax Return or ITR?

An ITR is a form through which taxpayers declare their income, expenses, deductions and tax payments to the department. This procedure is called as income tax return filing. If you've paid more taxes or extra TDS gets deducted than needed, the department will refund the extra money to your bank account with the filing of your ITR only. If you have paid less tax for the year, you have to pay the taxes and then can file your return. Tax form ranges from ITR 1 to ITR 7, which are used for different types of incomes and for different persons. Each form demands different information, some forms require more info and some need less and some need additional information such as a complete balance sheet and profit and loss statement also.

Why do you have to file income tax returns?

Normal time is up to 2 working days subject to site working.

What forms are used for which persons?

Yes. If the NGO wants to have Government Grants, then it is must to have NITI Ayog Registration.

How can I file an income tax return?

Please refer the Documents section above.

Do we need to visit any department to register for NITI AYOG of the I-T Act?

No. Our Compliance Manger will be doing it for you in the complete procedure of NITI Ayog Registration which is online process.

Can NGOs registered under NITI Ayog accept foreign donations?

An NGO is allowed receive foreign donations only when NITI AYOG (Foreign Contribution Regulation Act 1976) registration has been obtained from Ministry of Home Affairs. NITI AYOG license is normally applied when the Society is minimum 3 years older (in exceptional cases can be allowed-T&C.)

What are the facilities provided by NGO Darpan ?

The NGO-PS helps NGOs to:

Get details of existing VOs / NGOs across India
Get details of the schemes of the participating Ministries/Departments/Government Bodies (mentioned at home page) offering grants to VOs / NGOs
Apply on - line for NGO grants
Track status of your applications for grants

How can one apply for NGO grants under NITI Ayog?

To apply for grants under NITI Ayog, Get your NGO registered under Dapan. NGO Representatives can approach Nodal Officers for the concerned scheme, from the website. Any queries regarding schemes or about how to proceed for schemes and grants will be clarified by the respective Nodal Officers.

Further Questions/ Confusion or anything bothering you?

Not to worry at all! Someone from our experienced team will resolve all your queries. Our Compliance Manager will help you to give you the best advice without any fees. Get in touch Write to us at info@ccoffice.in or WhatsApp/Call us +91 99 88 42 42 11.

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