NGO Documents to be maintenance by NGO or Trust as per New Rule 17AA

Documents to be maintenance by NGO or Trust as per New Rule 17AA

Documents to be maintenance by NGO or Trust as per New Rule 17AA

NGO’s Books of account & other documents to be kept and maintained- New IT Rule 17AA

  • Central Board of Direct Taxes established new rule 17AA via income tax Notification No. 94/2022 dated August 10, 2022, which specifies the books of account and other documents that must be kept by each fund, institution, trust, university or other educational institution, hospital or other medical institution or non-governmental organization as required by section 12A(1)(b)(i) or or under clause (a) of tenth proviso to section 10(23C).
  • Ledger books & other records may be maintained in written form, digital form, electronic form, printouts of data saved in electronic form, digital form, or any other type of electromagnetic data storage device.
  • The registration office of non-governmental organization, or any other location in India that the management may decide by resolution and where such a resolution is adopted, shall be the site where the books of accounts & other documents shall be held and maintained by non-governmental organization. They must preserve books of accounts and other records in the format, location, and way that may be required.
  • However if a resolution has been adopted, we must inform the jurisdictional AO’s in writing within 7 days, providing the complete address of the other location.
  • Books of account & other documents must be stored and maintained for a minimum of 10 years After the completion of the relevant AY.
  • Non-governmental organization should be keep in mind that below adjustment was made by Finance Act of 2022:
  • Rule 17AA, a new regulation, mandates the maintenance and preservation of books of accounts and other records by all funds, organisations, trusts, colleges and other educational institutions, as well as hospitals and other healthcare facilities. In addition to the books of accounts, there are additional records for all projects and institutions, income from various sources, applications of income, income accumulated or set aside, money invested or deposited, voluntary contributions received, corpus received, loans and borrowings recorded, records of specific individuals recorded, etc.

Books of Accounts are required be maintained by NGO

Below books of accounts are Needed to be maintained by an trust or institution or non-governmental organization registered u/s 10(23C) or section 12A.

  • ledger; cash book; journal.
  • Original bills & receipts in respect of payments of NGO expenses
  • bills or counterfoils of receipts issued by the NGO/ Assessee
  • Any other book that may be needed to be keep to be maintained in order to provide a true and fair view of the state of the affairs which explain the transactions effected

Few other related documents are needed to be maintained by an trust/ institution or non-governmental organization registered U/s 10(23C) or section 12A.

  • Document and related Record of all the projects and institutions run by the person containing details of their name, address and objectives;
  • Any other record of income of person during the earlier year, including details of voluntary contribution, income from property held under trust & any other income.
  • The Document & related Records related to application of income
  • Records related to application out of accumulated income
  • The Document and related record of voluntary contribution made with a specific direction that they shall form part of the corpus
  • Records related to contribution received for the purpose of renovation or repair of religious institutions notified u/s 80G(2)(b) 
  • Document and related record of loans and borrowings
  • The Document and related record of properties held by NGO/ Assessee
  • Records of specified or related persons specified u/s 13(3) for NGO 

Conclusion 

  • Above said income tax provision is introduced in the line of mandatory maintenance of books of accounts by specified persons carrying on business or profession as per the provisions of income tax act section 44AA read along with Rule 6F under the Income tax Act or rules their under.
  • According to the Central Board of Direct Taxes notification of New Rule 17AA, the above accounts & books and related above documents are mandatory needed to be maintained by NGO or Trust in the specified form & manner & at the specified place of NGO office,
  • It should be noted that, except for those Trusts or NGOs whose donation income is less than Rs 250000 in a financial year, there is no distinction made between smaller or larger Trusts or NGOs with respect to the maintenance of the above-mentioned books of accounts and other records as per Rule 17AA. All charitable trusts and NGOs are expected to retain a long list of other documentation, which includes records of the projects they have undertaken, the donations of time or money they have received, information about the loans and investments they have made, and much more.
  • Small trusts and NGOs will undoubtedly find it challenging to adhere to Rule 17AA's comprehensive and detailed record-keeping requirements, which call for a Trust or NGO to maintain a variety of records. The cost of compliance will undoubtedly rise as a result, and smaller trusts and NGOs may find it difficult to comply.

  • These records do not necessarily need to be kept in an expensive piece of software. Even Excel Spreadsheets can be used to keep these records. Notwithstanding being regulatory requirements, one must abide by these rules.

Disclaimer: The content of this post isn't considered to be professional or legal advice, We aren't responsible for any damages arising from your access to the location content & must not be relied on or used as a substitute for legal advice from a lawyer professional in your jurisdiction. CARajput is among India's big digital compliance services platform which committed to helping people have started & developed their businesses. We had started with the goal of creating it easier for start-ups to start out their business. Our main aim is to assist the businessman with applicable laws & regulations compliance and providing support at each & every level to make sure the business stays compliant and growing continuously. For any query, help or feedback you may in touch on singh@carajput.com or Call or what’s-up on 9-555-555-480

Share This Post

Related Articles

Related Videos


NGO Compliance: NGO ?? | How to register NGO | NGO Registration Process

NGO Compliance: NGO ? | How to register NGO | NGO Registration Process

Published On: Dec 10, 2021 | By: RJA

Need help?

Request a call
from a RJA
Business Advisor.

LET'S TALK

Private Limited Company

Popular Categories

Browse Blogs

Recent Posts

Shift between old and new tax regime, Cant come back to old tax regime

Shift between old and new tax regime, Cant come back to old tax regime

India crypto TDS % on cryptocurrency trading

India crypto TDS % on cryptocurrency trading

Tax & Statutory Compliance Calendar for February 2023

Tax & Statutory Compliance Calendar for February 2023

Time Schedule for Filling of GST Refund Application

Time Schedule for Filling of GST Refund Application

Tax & Statutory Compliance Calendar for January 2023

Tax & Statutory Compliance Calendar for January 2023

Connect with a RJA Advisor

Fields marked with an * are required

Enquire Us

Please send us your query and we feel very happy helping you

Testimonials

  • Thank you very much for all your help in setting up my new company and clearing up all outstanding business in my sole trader accounts. For the first time in years I have peace of mind regards my business accounts. Your workforce are a credit to you, the girls at reception are so helpful and Chris has been brilliant. It is very much appreciated.

    A US consultancy group

  • Rajput Jain & Associates. are a tremendous value added to me as an executive and a busy parent. It just makes sense to delegate my tax file to them -- they are proactive, extremely service oriented, and most importantly, I am completely confident they are finding every dollar of tax savings available to me.

    A Leading Service Provider

  • We use Rajput Jain & Associates for all our accounting, Corporation tax, VAT and other compliance needs. The service is professional, courteous and prompt. I would recommend Rajput Jain & Associates to any company requiring a comprehensive accounting and tax service.

    A Leading Consultancy Firm in Dubai

Money Back Guarantee

Not happy with the service? You can request a refund at anytime within 30 days!

24/7 Support

Get support through phone, email, mobile app or live chat - 24/7, 365 days.

EMI Payment

Easily pay online with EMI payments, credit or debit card, net banking, PayPal and more.

Get In Touch--

Rajput Jain & Associates

Add: P-60, Connaught Circus, Connaught Place, New Delhi-110001

Email: singh@carajput.com

Phone: 9555555480

Legal Disclaimer--

The information contained on this website merely provides details of our firm to persons who have shown interest in knowing more about us and is not intended to solicit work or advertise our capabilities in any manner. The information provided on this website is general in nature and should not be used as a basis of decision-making without further professional advice. The third party site links are only provided for ready reference of the users and CA Rajput Jain & Associates neither controls their content nor undertakes any responsibility regarding them.

© 2016 Rajput Jain & Associates. All Rights Reserved | Sitemap

Call Email