AT A GLANCE
Four records every NGO team should connect
- STEP 1
Funds received
Donor or grant record.
- STEP 2
Funds used
Invoice and programme purpose.
- STEP 3
Accounts
Reconciled financial records.
- STEP 4
Reporting
Approvals, returns and receipts.
A Section 8 licence does not complete your compliance
Section 8 is a company-law route for specified charitable or other non-profit objects. It does not automatically provide income-tax exemption, donor deduction eligibility, permission to receive foreign contributions or CSR project funding. The organisation must separately check each permission and condition relevant to its activities.
An annual corporate review normally starts with books, financial statements, auditor records, directors and members, meetings and annual filings. Section 8 exemptions and their conditions should be reviewed for the company before using a standard private-company checklist. This avoids both missing an obligation and preparing unnecessary documents.
Corporate and financial workstreams
A scoped engagement can include accounting reconciliation, coordination of financial-statement preparation, meeting documentation and agreed ROC submissions. Management should maintain programme records alongside invoices and bank statements so expenditure can be linked to the organisation’s objects.
- Review the incorporation certificate, Section 8 licence, MOA/AOA and director records.
- Organise income, grants, donations, expenses and restricted-fund schedules.
- Coordinate auditor inputs, management approvals and agreed annual filings.
- Record event-based changes in directors, address, capital or governing documents.
- Keep the filed version, acknowledgement and subsequent query together.
Check the tax year and the applicable form system
India’s tax forms are changing with the Income-tax Act, 2025 and Rules, 2026. The current official portal provides regular non-profit registration and donation-approval applications through Form 105 under sections 332/354. Earlier periods and legacy approvals may still require reference to the former 12AB/80G framework.
Select the period and application purpose before choosing a form. Registration, donor approval, tax return, audit report and donation statement are different tasks. Form 10B was an audit report under the earlier framework; it must not be presented as the 80G approval application. Foreign contribution and CSR requirements need separate review where relevant.
Documents that make a review useful
A neat ledger alone may not explain a restricted grant or a donation intended for a specific activity. Keep donor details, grant conditions, utilisation records, receipts and programme evidence with the accounting records. Establish who verifies donor identities and who approves the use of funds.
If approvals are expiring, activities have changed or foreign money has been received, flag this at the start. Ask the reviewer to confirm the appropriate reporting route and any conditions. Submissions should rely on genuine records; LIQUETAX cannot create donor details, project activity or expenditure evidence that does not exist.
₹ fees, scope and exclusions
The written quote should separate professional preparation, bookkeeping, audit or certification, government filing charges and GST where applicable. Work for one year should name the covered returns and the volume of accounting transactions. Past-year reconstruction, donor-data correction, approval renewal and event-based changes may require additional work.
Statutory audit, FCRA advice, project impact evaluation, grant applications and representation in proceedings are excluded unless expressly agreed. Funding or donor-tax benefits cannot be guaranteed. Any professional signing a certificate must independently review the required records and satisfy the relevant conditions.
Plan the calendar around your actual dates
AGM and filing dates should follow the company’s position and current provisions, including any applicable extension. Tax return and audit due dates also depend on the relevant period and rules; an old fixed 30 September table should not be copied into every year.
Agree an internal close date for accounts, a donor-data review and a deadline for management signatures before the statutory submission date. The most common delays are unreconciled bank entries, missing grant conditions, donor PAN errors and late auditor inputs. Ask for a status report showing completed filings and specific outstanding records.
What to prepare before you contact us
- Incorporation certificate, Section 8 licence and MOA/AOA.
- Books, bank statements, receipts, invoices and grant conditions.
- Donor register and donation-purpose or restricted-fund details.
- Current tax registration/approval orders and application history.
- Audited financials, auditor appointment records and previous returns.
- Meeting minutes, director/member details and authorisations.
- CSR or foreign-contribution records where relevant to the engagement.
Start with your requirement and current stage. We will agree the document-sharing method before you send confidential records. Keep passwords, OTPs and digital-signature credentials with the authorised person.
How LIQUETAX can help
Set the period
Confirm the year, activities and relevant approval systems.
Review records
Reconcile accounts, donor data, grants and existing orders.
Agree scope
List corporate, tax and other workstreams with exclusions.
Prepare and certify
Obtain management approval, auditor inputs and authorised signatures.
File and retain
Store acknowledgements, query responses and the next calendar actions.
Your questions, answered
Does Section 8 status automatically make income tax-free?
No. Company incorporation and income-tax registration are separate. Eligibility and continuing conditions need period-specific review.
Do we need the same forms as last year?
Not necessarily. Confirm the relevant period and current portal. The 2025 Act and 2026 Rules introduce new form references.
Are bookkeeping and audit the same service?
No. Bookkeeping prepares records; statutory audit is an independent professional responsibility and must be separately included.
Can a company with no activities ignore annual compliance?
A no-activity year still requires an applicability review and accurate nil or other records where relevant. Do not assume there is no filing work.
Official references for this guide
AI-assisted editorial research checked on 7 October 2026. The applicable route, rule and charges depend on your facts. For individual professional advice, have your facts and documents assessed before filing. No named professional review is claimed.