NGO Audit — Form 10B and Form 10BB
A registered trust, society or Section 8 company that claims income-tax exemption must get its accounts audited by a chartered accountant and file the audit report in Form 10B or Form 10BB before its ITR-7. For FY 2025-26 the report is due by 21 October 2026. We audit, prepare the report and upload it on the Income Tax e-filing portal.
What it is
An NGO audit is the income-tax audit of a charitable or religious organisation that wants its income to stay tax-free. A chartered accountant checks the books and how much income went to the objects, then reports in a prescribed form. Without it, the exemption is at risk.
For FY 2025-26 the Income-tax Act, 1961 still applies. Section 12A(1)(b) makes the audit a condition of exemption under sections 11 and 12 once total income, computed before the exemption, crosses the maximum amount not chargeable to tax. Here is the catch: the test uses income before the exemption, so even an NGO that spends every rupee usually needs the audit. CBDT Notification No. 7/2023 split the report into two forms from AY 2023-24: Form 10B for larger or foreign-funded NGOs and Form 10BB for the rest. From tax year 2026-27, under the Income-tax Act, 2025, the report becomes Form 112 (section 348, Rule 188).
Who it applies to
You run a registered trust or society
Public charitable trusts and societies registered under section 12A/12AB (now section 332) whose income, before exemption, is above the basic limit.
You run a Section 8 company
A Section 8 company already has a statutory audit under the Companies Act. If it claims exemption, it also needs the income-tax audit report in Form 10B or 10BB, filed alongside ITR-7.
You received foreign or large funding
Any NGO that received foreign contribution under FCRA during the year, even a small amount, or whose income before exemption exceeds ₹5 crore, must use the longer Form 10B.
Why it matters
Keeps your income tax-free
The exemption under sections 11 and 12 depends on the report reaching the portal in time. Miss it and the year’s income can be taxed.
Supports renewal of registration
Renewal in Form 105 asks for annual accounts of earlier years. Clean audited accounts make it straightforward.
Builds donor and CSR trust
CSR committees and grant-giving departments want audited statements. A Faridabad Section 8 company pitching a skilling project to a manufacturer’s CSR team will be asked for them before anything else. They can verify the UDIN themselves.
Documents required
Registration papers
- Trust deed, society bye-laws or MoA/AoA
- PAN of the organisation
- 12A/12AB or section 332 registration order
- 80G approval and FCRA certificate, if any
Books and bank records
- Cash book, ledger and journal for the year
- All bank statements, including the FCRA account
- Donation receipts and donor list
- Fixed asset and investment details
Programme records
- Project-wise spending and grant agreements
- Corpus donation letters
- Details of payments to trustees and their relatives
- Earlier Form 9A/10 filings, if any
Form 10B or Form 10BB: which one applies
| Test | Form 10B | Form 10BB |
|---|---|---|
| Total income before exemption | Above ₹5 crore | ₹5 crore or less |
| Foreign contribution in the year | Any amount received | None |
| Income applied outside India | Yes | No |
| Level of disclosure | Detailed annexures | Shorter format |
One “yes” in the Form 10B column is enough. Picture a Faridabad education trust with ₹40 lakh of local donations that receives a single grant from an overseas alumni group. That one foreign receipt moves it from Form 10BB to Form 10B for the whole year. We settle this before the audit begins.
How it works
Close and reconcile the year’s books
We reconcile every bank account, including the FCRA account, and tie donation receipts to the donor list. If your books are behind, our bookkeeping team brings them up to date first.
Prepare the financial statements
We draw up the balance sheet, income and expenditure account and receipts and payments account. Then we work out how much income actually went to the objects.
Audit the records and pick the form
We test vouchers, corpus receipts, payments to related persons and investments, and confirm whether Form 10B or Form 10BB applies.
Upload the report with UDIN
Our chartered accountant generates the UDIN and files the report on the Income Tax e-filing portal.
File ITR-7 and the accumulation forms
We file Form 9A or Form 10 where needed, then ITR-7 on the audited figures.
Timelines
Upload the FY 2025-26 report by 21 October
The report is due one month before the return due date. With the CBDT extension of 28 September 2026 moving audited returns to 21 November 2026, Form 10B/10BB falls due by 21 October 2026.
File ITR-7 by 21 November 2026
21 November 2026 for organisations whose accounts must be audited. Form 9A and Form 10 go in on or before this date.
Switch to Form 112 from 2026-27
Form 112 replaces 10B/10BB. The normal due date is 30 September 2027, with the return by 31 October 2027.
What happens if the audit report is late
You can lose the year’s exemption
The audit report is a condition under section 12A(1)(b). If it is not filed in time, the department can deny the exemption under sections 11 and 12 and tax the year’s income.
Condonation is discretionary
CBDT Circular No. 6/2024 (18 November 2024) covers condonation of delay in Forms 9A, 10, 10B and 10BB for AY 2018-19 onwards. It needs an application and a genuine reason, and it is not automatic.
The wrong form invites questions
Filing Form 10BB where Form 10B applied can get the report treated as defective.
Frequently asked questions
Is an audit compulsory for every registered NGO?
An audit is compulsory once the NGO’s total income, computed before the exemption, exceeds the maximum amount not chargeable to tax. That is the condition in section 12A(1)(b) of the Income-tax Act, 1961. Because the test uses gross income before exemption, most NGOs that run any real programme cross it. A trust with only nominal receipts may fall below it. We check your figures at the start of the year and tell you early, well before the audit season.
What is the difference between Form 10B and Form 10BB?
Form 10B is the detailed report for NGOs with income above ₹5 crore before exemption, or with any foreign contribution, or with income applied outside India. Form 10BB is the shorter report for everyone else. Both were introduced by CBDT Notification No. 7/2023 from AY 2023-24. If even one of the three Form 10B tests applies, you file Form 10B. We confirm the right form before the audit starts, so the report is accepted first time.
What is the due date for the FY 2025-26 audit report?
The audit report for FY 2025-26 is due by 21 October 2026. The report must reach the portal one month before the return due date, and the CBDT’s 28 September 2026 extension moved the return date for audited cases to 21 November 2026. The formal notification was still to follow when the extension was announced. We plan to upload well before the date, so a late notification does not leave you exposed.
Does a Section 8 company need Form 10B if it already has a company audit?
Yes, a Section 8 company claiming exemption needs the income-tax audit report as well as its Companies Act audit. The statutory audit supports the AOC-4 filing with the ROC. The Form 10B or 10BB report supports the exemption claimed in ITR-7. One chartered accountant can do both from one set of audited figures, so your numbers match on both portals.
What changes under the Income-tax Act, 2025?
From tax year 2026-27 the audit report is filed in Form 112 under section 348 and Rule 188, replacing Forms 10B and 10BB. The normal due date is 30 September after the tax year, so 30 September 2027 for the first year. Registrations valid on 1 April 2026 continued under section 332. FY 2025-26 is still audited under the old Act. We handle both sets of forms for you.
Our NGO missed the audit report deadline. What now?
File the report as soon as possible and apply for condonation of delay. CBDT Circular No. 6/2024 dated 18 November 2024 covers condonation for Forms 9A, 10, 10B and 10BB for AY 2018-19 onwards. You must explain the delay, and approval is discretionary. We prepare the application with supporting papers and track it with the department.
Does foreign contribution change the audit?
Yes, any foreign contribution received in the year makes Form 10B compulsory, whatever the amount. Section 19 of the FCRA, 2010 also requires a separate account of foreign contribution and a record of how it was used. Those FCRA books feed the income-tax audit and the FC-4 annual return. We audit the FCRA account alongside the main books, so the figures in both returns agree.
Who can sign the NGO audit report?
Only a chartered accountant in practice can sign Form 10B or Form 10BB. The CA generates a UDIN on the ICAI portal for the report and uploads it on the Income Tax e-filing portal against the organisation’s PAN. Anyone receiving a copy, such as a CSR donor, can verify the UDIN. Our chartered accountants sign and file the report, and we keep the working papers ready in case the department asks questions.
How long does an NGO audit take?
An NGO audit with up-to-date books usually takes one to two weeks of working time. The longer part is often collecting missing vouchers, donation receipts and bank statements. In practice, a society running one school, with its bank accounts reconciled every month, is done quickly. A trust that last reconciled its bank in December takes longer. If you share your records by August, we can file comfortably before the October due date.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Ready to begin?
Send us your books for FY 2025-26 and we will have your Form 10B or 10BB on the portal before 21 October 2026.