ITR for a Section 8 Company — Which Form & Compliance
A Section 8 company (a non-profit under the Companies Act) must file its income tax return every year — being non-profit does not exempt it from filing. In fact, filing is essential to claim its tax exemption. This guide explains ITR filing for a Section 8 company.
Which ITR form does a Section 8 company file?
A Section 8 company registered under Section 12A/12AB files ITR-7 — the return for entities claiming exemption under the charitable/religious trust provisions (Sections 11 and 12). ITR-7 is used by trusts, societies and Section 8 companies that are registered charitable entities.
Why filing matters even though it’s non-profit
The income-tax exemption for a charitable entity is conditional — it must apply its income to its objects, file its return on time, and meet the compliance conditions. Missing the return can jeopardise the exemption, making the income taxable. So timely ITR-7 filing is not optional.
Audit report — Form 10B/10BB
Where the entity’s income exceeds the basic exemption limit (before exemption), it must get its accounts audited and file the audit report in Form 10B / 10BB before/with the return, within the prescribed time. This is in addition to the company’s statutory audit under the Companies Act.
Key compliance for a Section 8 company
- ITR-7 filed by the due date.
- Audit report (Form 10B/10BB) where applicable.
- Maintain 12A/80G registrations and apply income to objects.
- Plus the usual ROC annual filings (AOC-4, MGT-7) as a company.
TAXAJ handles NGO/Section 8 tax filing and compliance.
Frequently asked questions
Does a Section 8 company need to file an income tax return?
Yes — every year in ITR-7, even though it is non-profit; filing is needed to claim the exemption.
Which ITR form applies to a Section 8 company?
ITR-7, for entities registered under 12A/12AB claiming exemption under Sections 11 and 12.
Is an audit required?
Where income exceeds the basic exemption limit before exemption, an audit report in Form 10B/10BB is required, plus the company’s statutory audit.
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Related guides: Section 8 company · 12A & 80G · NGO tax filing
