Audit of accounts
Audit of the balance sheet, income and expenditure account and receipts and payments account, with an independent audit report.
NGO, Trust & Society Audit in Kochi, Kerala
T K Chandy & Associates audits NGOs, charitable trusts, societies and section 8 companies in Kochi and across Kerala. We prepare and audit the accounts, file the income-tax exemption audit report (Form 10B or 10BB for FY 2025-26, Form 112 from tax year 2026-27), certify FCRA accounts for Form FC-4, and help keep registration, donation and society filings in order.
- Led by a chartered accountant since 1994
- Member of SGA World International
- Kakkanad, Kochi
At a glance
NGO and trust audit at a glance
- Who needs it: Charitable and religious trusts, societies and section 8 companies registered for income-tax exemption whose income before exemption exceeds the basic exemption limit, and every FCRA-registered organisation.
- Which report: Form 10B or 10BB for FY 2025-26 under the 1961 Act; a single Form 112 under section 348 of the Income-tax Act, 2025 from tax year 2026-27.
- Key deadlines: Audit report one month before the return due date; FCRA annual return Form FC-4 by 31 December (nine months after the year end).
- Our role: Accounts, audit, exemption and FCRA reporting, and registration renewals handled by one team, so every filing tells the same story.
Charities and non-profits answer to more people than most businesses: the Income Tax Department, which grants their exemption; the Ministry of Home Affairs if they receive foreign contributions; the Registrar under which they are formed; and the donors and members who fund them. A clean, timely audit is what keeps the exemption, the FCRA registration and the donors' trust in place.
At T K Chandy & Associates, our chartered accountants in Kakkanad audit charitable trusts, societies, educational and medical institutions, religious bodies and section 8 companies. We understand fund accounting, corpus and restricted grants, the application of income rules and FCRA account-keeping, and we plan the audit around your income-tax, FCRA and society filing dates.
NGO audit services
Which Non-Profit Organisations Do We Audit?
We work with non-profits of every size across Ernakulam and Kerala, from small local charities to institutions with large grants and staff. Each audit is led and signed by a chartered accountant.
- Public charitable and religious trusts formed by trust deed
- Societies registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 or the Societies Registration Act, 1860
- Section 8 companies under the Companies Act, 2013
- Educational institutions and hospitals run on a non-profit basis
- FCRA-registered NGOs receiving foreign grants
- Church, temple and community bodies and welfare associations
What the engagement covers
What Does Our NGO and Trust Audit Include?
Income-tax exemption audit
Form 10B or 10BB for FY 2025-26, and Form 112 from tax year 2026-27, uploaded on the e-filing portal before the deadline.
FCRA accounts and FC-4
Separate audit and certification of foreign contribution accounts, and support with the annual return in Form FC-4.
Application of income review
A check that income is applied to the objects within the limits, with accumulations, corpus and restricted funds properly tracked.
Section 8 company audit
Statutory audit under the Companies Act, 2013 with ROC filings, alongside the income-tax exemption audit.
Registrar and donor reporting
Audited accounts for the Registrar of Societies, grant utilisation certificates and donor reports.
Income-tax audit
Which Income-Tax Audit Form Does Your Trust Need?
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Exempt non-profits are now called registered non-profit organisations, registered under section 332 and audited under section 348. The form depends on the year:
| Year and situation | Audit report form |
|---|---|
| FY 2025-26: larger trusts (income before exemption above ₹5 crore, or any foreign contribution, or income applied outside India) | Form 10B |
| FY 2025-26: other trusts and institutions | Form 10BB |
| Tax year 2026-27 onwards: all registered non-profit organisations that need an audit | Form 112 (single form) |
| Income before exemption within the basic exemption limit | No audit report under the Income-tax Act, though the law under which you are formed may still need audited accounts |
The audit report is due one month before the due date of the income-tax return. The Form 112 detail is based on the forms and guidance published by the Income Tax Department; we confirm the final requirements for each year before filing.
Our process
How Does an NGO Audit Work With Us?
Step01
Engagement and records review
We review your trust deed, bye-laws or memorandum, registrations, FCRA status and last year's reports, and agree the timetable.
Step02
Books and fund accounting
We check that general, corpus, restricted and FCRA funds are separately accounted for, and help finalise the books if needed.
Step03
Audit fieldwork
We vouch receipts and donations, test expenditure against objects and grants, verify bank accounts and assets, and review related-party payments.
Step04
Reports and certificates
We issue the audit report, the income-tax audit form, FCRA certificates and grant utilisation certificates, each with UDIN.
Step05
Filing support
We help file the income-tax return, FC-4, Registrar returns and ROC forms for section 8 companies on time.
Compliance calendar
What Are the Key Filing Deadlines for NGOs and Trusts?
For an organisation with a financial year ending 31 March:
Income-tax audit report
- Due date
- One month before the return due date
- Law
- Form 10B / 10BB (FY 2025-26); Form 112 from tax year 2026-27
Income-tax return
- Due date
- Due date notified for audit cases
- Law
- Income-tax Act
FCRA annual return
- Due date
- By 31 December (nine months after the year end)
- Law
- Form FC-4, FCRA 2010
Section 8 company accounts and annual return
- Due date
- 30 and 60 days after the AGM
- Law
- AOC-4 and MGT-7, Companies Act 2013
Society returns and audited accounts
- Due date
- As required by the Act and your bye-laws
- Law
- Registrar of Societies, Kerala
Be audit-ready
What Documents Should an NGO Prepare for the Audit?
Keeping these ready shortens the audit and avoids last-minute queries:
- Trust deed, bye-laws or memorandum and articles
- Income-tax registration and donation approval orders
- FCRA registration certificate, if any
- Cash book, ledgers and bank statements
- Separate FCRA account and utilisation account statements
- Donation receipts and donor list
- Corpus and restricted grant agreements
- Grant utilisation reports to donors
- Fixed asset register and title documents
- Salary and payment records for staff
- Minutes of trustee or governing body meetings
- Previous year's audit reports and returns
Foreign contributions
What Does FCRA Require From Your Audit?
An organisation registered (or granted prior permission) under the Foreign Contribution (Regulation) Act, 2010 must receive foreign contribution only in its designated FCRA account at the State Bank of India, New Delhi Main Branch, and keep separate books for it. Every year it must file the annual return in Form FC-4 within nine months of the year end, that is by 31 December, with the balance sheet, income and expenditure account and receipts and payments account of the foreign contribution, certified by a chartered accountant. A return is needed even if no foreign contribution was received in the year.
We audit the FCRA accounts separately from your local funds, check that foreign contribution is used only for the purposes and within the limits allowed, and certify the statements for FC-4. FCRA rules and limits change from time to time, so we check the Ministry of Home Affairs portal for the current position before every filing.
Worked example
Example: Audit of a Kochi Educational Society
A society registered under the 1955 Act runs a school and a vocational training centre in Ernakulam district. Its income before exemption was about ₹2.8 crore, including a foreign grant for the training centre.
- Because it received foreign contribution in FY 2025-26, its income-tax audit report had to be in Form 10B, not 10BB.
- The foreign grant had been credited to the general bank account for a few weeks before being transferred, which we reported and the society corrected with the bank's help.
- Capital expenditure on new classrooms was correctly treated as application of income, but a fixed deposit created from school fees had not been recorded as an accumulation, so the required statement was prepared and filed in time.
- We certified the FCRA statements for FC-4 and prepared the audited accounts for the Registrar.
The audit report and return were filed before the due dates, the exemption remained intact, and the society now keeps the FCRA and local funds in separate ledgers throughout the year.
Fees and timing
How Much Does an NGO or Trust Audit Cost in Kochi?
There is no fixed scale. The fee depends on the size of income and number of transactions, the number of projects, grants and bank accounts, whether there is foreign contribution needing FCRA certification, whether we also write up the books, the number of institutions or branches run by the organisation, and whether it is a section 8 company needing a Companies Act audit as well. A small trust with organised books needs only a few days; an institution with grants and FCRA funds needs longer. We quote a fixed fee in writing after reviewing last year's accounts.
Glossary
Key terms for NGOs and trusts
- Registered non-profit organisation
The term the Income-tax Act, 2025 uses for a trust, society, section 8 company or institution registered for income-tax exemption.
- Application of income
Spending on the organisation's charitable or religious objects in India. The law requires a minimum share of income to be applied each year.
- Accumulation
Income set aside for specific purposes and applied later, within the conditions and time limits in the Act.
- Corpus donation
A donation given with a specific direction that it forms part of the organisation's permanent fund.
- Foreign contribution
Money, articles or securities received from a foreign source, regulated by the FCRA, 2010 and reported in Form FC-4.
Why T K Chandy & Associates
Why Choose Us as Your NGO and Trust Auditor in Kochi?
CA-led since 1994
Every report is reviewed and signed by an experienced chartered accountant familiar with non-profit accounting.
We understand non-profits
Fund accounting, corpus, restricted grants and donor reporting, explained clearly to trustees and governing bodies.
Planned around your deadlines
Audit timed for the income-tax audit report, FC-4, Registrar and AGM dates, without last-minute rush.
Up to date on the new tax law
We guide you through the move from the 1961 Act to the Income-tax Act, 2025 and the new Form 112.
Based in Kochi
Our Kakkanad office is easy to reach from across Ernakulam, and we visit institutions elsewhere in Kerala.
Independence and confidentiality
Strict ICAI ethics and careful handling of donor and beneficiary information.
Related services
Which Other Services Help Non-Profits?
Accounts outsourcing
Fund-wise books kept up to date and ready for audit.
Income tax filing
Return filing for trusts and institutions, and replies to notices.
Payroll services
Staff salaries, PF, ESI and TDS on salaries.
TDS compliance
TDS on payments to contractors, professionals and staff.
ROC / MCA compliance
Annual filings for section 8 companies.
Company registration
Forming a section 8 company for a new charitable venture.
Get a quote
Request an NGO or trust audit quote
Tell us the type of organisation, its annual income, whether it receives foreign contribution and its year end. We will reply with the scope, timetable and a fixed fee.
Prefer to talk now? Call +91 484 354 1530 or email [email protected].
Who prepared this page
Written and reviewed by chartered accountants at T K Chandy & Associates
This page is prepared by the audit and tax team at our Kakkanad, Kochi office and checked against the Companies Act, the Income-tax Act, GST law and ICAI standards. It is reviewed whenever the rules change.
- Last reviewed 29 October 2026
- Led by T K Chandy Vaidyan, chartered accountant since 1994
- Member of SGA World International
Have a question about your business?
Tell us your entity type, what you need and any deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
NGO, trust and society audit in Kochi – frequently asked questions
Short answers to the questions clients in Kochi ask us most. Still unsure?
Talk to our team01.Is audit compulsory for a charitable trust?
Under the Income-tax Act, a registered trust or institution must get its accounts audited if its total income, before claiming the exemption, exceeds the basic exemption limit. Many trust deeds, society laws and donors also require audited accounts regardless of income.
02.What is Form 10B and Form 10BB?
They are the income-tax audit reports for exempt trusts and institutions under the 1961 Act. Form 10B applies to larger organisations, with income before exemption above ₹5 crore, any foreign contribution or income applied outside India; Form 10BB applies to the rest. They still apply for FY 2025-26.
03.What is Form 112?
Form 112 is the audit report for registered non-profit organisations under section 348 of the Income-tax Act, 2025. It replaces Forms 10B and 10BB from tax year 2026-27 and is filed electronically by the chartered accountant.
04.What is the due date for the trust audit report?
The audit report must be filed one month before the due date for filing the income-tax return. We recommend finishing the audit well before that so the return can be prepared from the final figures.
05.What replaced section 12A and 12AB registration?
Under the Income-tax Act, 2025, trusts, societies, section 8 companies and similar bodies apply for registration as a registered non-profit organisation under section 332. If you were registered under the 1961 Act, we check how your existing registration carries over and when it falls due for renewal.
06.What happens to 80G approval under the new Income-tax Act?
Approval allowing donors to claim a deduction continues under the Income-tax Act, 2025 with its own provisions and forms. We check the validity of your existing approval and help with renewal and the annual statement of donations.
07.Which law governs societies in Kochi?
Societies in the former Travancore and Cochin areas, including Kochi, are generally registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955. Societies in the Malabar area are registered under the Societies Registration Act, 1860.
08.What is FC-4 and when is it due?
FC-4 is the annual return under the FCRA, 2010. It must be filed within nine months of the end of the financial year, by 31 December, with the balance sheet, income and expenditure account and receipts and payments account of the foreign contribution certified by a chartered accountant.
09.Do we need to file FC-4 if we received no foreign contribution?
Yes. An FCRA-registered organisation must file the annual return even if no foreign contribution was received during the year.
10.Where must foreign contribution be received?
Foreign contribution must be received only in the designated FCRA account at the State Bank of India, New Delhi Main Branch. It can then be moved to separate utilisation accounts, and the accounts must be kept separately from local funds.
11.Does CARO 2020 apply to a section 8 company?
No. Section 8 companies are excluded from CARO 2020. They still need a statutory audit under the Companies Act, 2013 and must file AOC-4 and MGT-7 after the AGM.
12.What is application of income for a trust?
It is the amount spent on the organisation's charitable or religious objects during the year. The Income-tax Act requires a minimum share of income to be applied, with the balance either accumulated under the prescribed conditions or taxed.
13.Can a trust lose its exemption because of a late audit?
Late or missing audit reports can lead to denial of the exemption for that year, and repeated non-compliance can put the registration at risk. Filing the audit report on time is one of the most important compliance steps for a trust.
14.Can you also maintain our books?
Yes. Our team can keep fund-wise books and prepare the accounts. Where we also act as auditor, we follow ICAI's independence rules on the services we can provide together.