Section 8 Company Compliance Checklist (2025) – ROC, Income Tax, GST & More

  • Section 8 Companies (Non-Profit Organizations or NGOs) in India enjoy numerous tax and regulatory benefits. However, to retain their active status and avoid penalties, these companies must meet a strict set of compliance requirements under various laws—Companies Act, Income Tax Act, GST, and FCRA (if applicable).

    In this article, we’ll cover the complete annual compliance checklist for Section 8 companies, the consequences of non-compliance, and expert services available to help you stay compliant.

     


📋 What Is a Section 8 Company?

A Section 8 Company is registered under the Companies Act, 2013for charitable purposes such as education, healthcare, environment protection, or arts. It is a legaland tax-recognized form of NGO that does not distribute profits to its members.


  • 🗓️ Annual Compliance Requirements for Section 8 Companies

    Below are the key filings and obligations a Section 8 company must fulfill every year:

    🔹 ROC (Registrar of Companies) Compliance

    ComplianceDescriptionTimeline
    ADT-1
    Auditor Appointment
    Within 15 days of AGM
    AOC-4
    Filing of Financial Statements
    Within 30 days of AGM
    MGT-7 / 7A
    Annual Return
    Within 60 days of AGM
    Board Meetings
    Minimum 2 per year
    One in each half of the year
    AGM
    Annual General Meeting
    Within 6 months of financial year end

    🔹 Income Tax Compliance

    ComplianceDescription
    ITR Filing (Form ITR-7)
    Mandatory even if no income
    Audit under Section 12A/12AB
    If registered as a charitable institution
    Form 10B / 10BB
    Audit report under Income Tax
    80G Reporting
    Form 10BD for donation receipts

    🔹 TDS & TAN Compliance

    If your NGO deducts TDS on salary, contractor payments, rent, etc.:

    • Quarterly TDS Returns (Form 24Q/26Q)

    • TDS Payment (Challan 281) by 7th of the following month

    • Issue Form 16/16A to deductees

    🔹 GST Compliance (If Applicable)

    Applicable only if the company is registered under GST (usually if turnover exceeds ₹20 lakhs):

    • Monthly/Quarterly GST Returns (GSTR-1, GSTR-3B)

    • Annual GST Return (GSTR-9) if turnover > ₹2 crore

    🔹 FCRA Compliance (If Foreign Donations Received)

    ComplianceDescription
    FCRA Registration/Renewal
    Mandatory before accepting foreign funds
    Annual Return (Form FC-4)
    Filed by 31st December each year
    Quarterly Intimation
    If foreign contribution > ₹1 lakh per quarter

    ⚠️ Consequences of Non-Compliance

    Failing to comply with statutory obligations can lead to:

    • Revocation of Section 8 license

    • Heavy penalties and late fees

    • Disqualification of Directors

    • Prosecution and imprisonment in serious cases

    • Loss of tax exemption (12A/80G)

    ✅ Why Choose a Compliance Partner?

    Managing multiple filings across different departments (MCA, Income Tax, GST, FCRA) can be time-consuming and complex.

    At Akshay K Jain & Company, we offer end-to-end compliance support for Section 8 companies:

     

    🔧 Our Services Include:

    • Annual ROC Filings (ADT-1, AOC-4, MGT-7)

    • Income Tax Return & Audit Filing (ITR-7, 10B, 10BD)

    • TDS Compliance & GST Filings

    • FCRA Return Assistance

    • Maintenance of Statutory Registers

    • Advisory on 12A, 80G & CSR

    📞 Need expert help?
    📧 Email: caakshayj@gmail.com
    🌐 Website: www.caakshayjain.in
    📱 Call/WhatsApp: +91-7379998666

    🧠 FAQs

    1. Is it mandatory for Section 8 companies to file an income tax return?
    Yes, even if no income is earned, filing ITR-7 is mandatory.

    2. How many board meetings are required in a year?
    At least two board meetings in a calendar year.

    3. Can a Section 8 company receive foreign donations?
    Yes, but only after obtaining FCRA registration.


Annual Compliance Services for Private Limited Companies, OPC & Public Limited Companies in Varanasi

 Akshay K Jain & Company – Chartered Accountants in Varanasi, provides end-to-end Annual Compliance services for Private Limited Companies, One Person Companies (OPCs), and Public Limited Companies. As the Best CA in Varanasi, we ensure your company remains fully compliant with ROC and Income Tax laws, avoiding hefty penalties and ensuring peace of mind.

🔍 Why Annual Compliance is Important?

Companies registered under the Companies Act, 2013 are mandated to file annual returns and financial statements with the Ministry of Corporate Affairs (MCA) and Income Tax Department. Non-compliance leads to penalties, disqualification of directors, and additional fees.

✅ Our Annual Compliance Services Include:

1. Form AOC-4 – Filing of Financial Statements

  • Applicable to: All companies (Pvt Ltd, OPC, Public)

  • Due Date:

    • Within 30 days of AGM (usually by 30th October)

    • For OPCs (which have no AGM): within 180 days from end of financial year

  • Penalty for Non-Compliance:

    • ₹100 per day of delay (No upper limit)

    • Additional penalty may apply to officers in default

2. Form MGT-7 – Annual Return

  • Applicable to: All companies except OPC

  • Due Date: Within 60 days of AGM (usually by 29th November)

  • Penalty: ₹100 per day of delay

3. Form MGT-7A – Annual Return for OPC and Small Companies

  • Applicable to: OPCs and Small Companies

  • Due Date: Within 60 days of AGM or due date of AGM

  • Penalty: ₹100 per day of delay

4. Form ADT-1 – Appointment of Auditor

  • Applicable to: All Companies (except OPCs if auditor is appointed at incorporation)

  • Due Date: Within 15 days from the conclusion of AGM

  • Penalty: Additional fees and prosecution provisions in some cases

5. Form DIR-3 KYC / DIR KYC Web

  • Applicable to: All directors holding DIN

  • Due Date: 30th September every year

  • Penalty: ₹5,000 if not filed within the due date. DIN becomes deactivated until KYC is completed.

6. Income Tax Return (ITR) Filing

  • Applicable to: All Companies

  • Due Date:

    • 31st October for companies not requiring audit

    • 30th September for companies requiring audit

  • Penalty:

    • ₹5,000 for delay up to 31st December

    • ₹10,000 beyond that

    • Additional interest on tax dues

7. Statutory Audit

  • Conduct of audit under Companies Act by Chartered Accountants

  • Includes preparation of:

    • Auditor’s Report

    • Financial Statements

    • Notes to Accounts

  • Mandatory for all companies, irrespective of turnover

📌 Benefits of Choosing Us

  • ✅ Best CA in Varanasi with years of experience in ROC compliances

  • ✅ Timely reminders & filings

  • ✅ Expert team of Chartered Accountants & CS

  • ✅ Affordable & transparent pricing

  • ✅ PAN India services through online mode

📞 Get in Touch Today!

Ensure your company stays compliant and penalty-free. Contact Akshay K Jain & Company – Chartered Accountants in Varanasi for reliable Annual Compliance services.

📧 Email: caakshayj@gmail.com
🌐 Website: www.caakshayjain.in
📱 Call/WhatsApp: +91-7379998666

Tax Audit: An In-Depth Guide for Businesses and Professionals in Varanasi And India

 A tax audit is a systematic examination of an individual’s or organization’s financial records by a tax authority or a qualified Chartered Accountant (CA) to ensure accurate reporting and compliance with tax laws. In India, tax audits are governed primarily by Section 44AB of the Income Tax Act, 1961, and play a crucial role in maintaining transparency and discipline in financial reporting for businesses and professionals, including those operating in Varanasi.


What is a Tax Audit?

A tax audit involves reviewing tax returns, accounting records, and relevant financial documents to verify the correctness of income declared, deductions claimed, and taxes paid. This process is distinct from other statutory audits, as it is specifically aimed at ensuring compliance with the Income Tax Act and related regulations


Who is Required to Undergo a Tax Audit?

Under Section 44AB of the Income Tax Act, the following entities are required to have their accounts audited by a Chartered Accountant in Varanasi or elsewhere in India:

  • Businesses: If the total turnover or gross receipts exceed ₹1 crore in a financial year.

  • Professionals: If gross receipts from the profession exceed ₹50 lakh in a financial year.

  • Special Cases: Certain presumptive taxation schemes and other specific scenarios may also require a tax audit, even at lower thresholds

Objectives and Importance of Tax Audit

  • Legal Compliance: Ensures that businesses and professionals comply with statutory requirements, thereby avoiding penalties and legal complications.

  • Accuracy and Transparency: Promotes the accurate reporting of taxable income, deductions, and tax liabilities, reducing the risk of discrepancies or errors.

  • Credibility and Trust: An audit report prepared by a CA in Varanasi enhances the credibility of financial statements, which is vital for securing loans, attracting investors, and building trust with stakeholders.

  • Detection of Discrepancies: Helps identify and rectify inconsistencies in financial records before they escalate into larger issues or disputes with tax authorities.

  • Fair Taxation: Contributes to a fair and equitable taxation system by ensuring that all eligible taxes are paid, discouraging tax evasion


Process and Documentation

The tax audit process typically involves:

  • Examination of books of accounts, receipts, payments, and supporting documents.

  • Verification of compliance with applicable tax laws and regulations.

  • Preparation and submission of the tax audit report in the prescribed forms (Form 3CA/3CB and Form 3CD) by the due date—usually 30th September for most taxpayers.

Penalties for Non-Compliance

Failure to comply with tax audit requirements can result in significant penalties, including fines up to ₹1.5 lakh or 0.5% of total sales, whichever is lower. Timely and accurate completion of the tax audit is essential to avoid such penalties.

Role of Chartered Accountants in Varanasi

AKSHAY K JAIN AND COMPANY, Chartered Accountants (CAs) in Varanasi provide expert tax audit services, ensuring that businesses and professionals meet all regulatory requirements efficiently. Their deep understanding of local business practices and tax laws makes them valuable partners for compliance, financial planning, and audit services

📞 CONTACT US TO KNOW MORE

If you want to Get Your Business Tax Audited, let our experts help your business be tax complaint legally and efficiently.

📧 Email: caakshayj@gmail.com
📞 Phone: +91-9956948337/7379998666
🌐 Website: www.caakshayjain.in

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