Audit & Assurance · Trust Act

Trust Audit for charitable, religious & private trusts.

Statutory audit of trusts registered under the Bombay Public Trusts Act, receiving FCRA funds, or holding 12A/80G registration — conducted by ICAI-registered Chartered Accountants with all required compliance reporting.

Trusts in India operate across a complex web of statutes — the Bombay Public Trusts Act, 1950 for Maharashtra-registered trusts, the Income Tax Act for 12A/80G exemptions, and the Foreign Contribution Regulation Act for entities receiving foreign funds. Each statute imposes its own audit requirements, its own reporting forms, and its own timelines. Non-compliance with any one of them can result in cancellation of registration, loss of tax exemption, and prosecution of trustees.

The trust audit is not merely a formality. It is the primary mechanism through which donors, beneficiaries, the Charity Commissioner, and the Income Tax department receive assurance that the trust's funds have been applied for the stated charitable or religious objects. For FCRA-registered organisations, the audit report must also confirm compliance with the foreign contribution utilisation norms and annual FC-4 reporting.

At Beyonte Compliances, we handle trust audits across all applicable statutes in one co-ordinated engagement — examining receipts and payments, verifying application of income, reviewing investments, and preparing the audit report and filing documentation for the Charity Commissioner and income tax authorities.

What Our Trust Audit Covers

Bombay Public Trusts Act Audit

Statutory audit of trusts registered with the Charity Commissioner, Maharashtra — covering receipts and payments, income and expenditure, and balance sheet in the prescribed format with the Schedule VII statement.

Income Tax Audit for Trusts

Audit and Form 10B/10BB filing for trusts claiming exemption under Sections 11 and 12 — verifying that income has been applied for charitable purposes in the manner required for 12A/80G compliance.

FCRA Audit

Audit of foreign contribution receipts and utilisation for entities registered or granted prior permission under the Foreign Contribution Regulation Act — including FC-4 annual return support and designated account verification.

Charitable Application Review

Verification that at least 85% of income has been applied for charitable objects during the year, and that accumulations and set-asides comply with the conditions prescribed under Sections 11 and 12 of the Income Tax Act.

Investment Compliance Check

Review of trust investments to confirm compliance with Section 11(5) — ensuring funds are invested only in the modes specified by the Income Tax Act and trust deed provisions.

Related Party & Trustee Transaction Review

Examination of transactions involving trustees, settlors, and related persons — identifying payments that could attract disqualification of exemption under Section 13.

Corpus & Accumulation Verification

Confirmation that corpus donations have been separately identified and invested, and that permissible accumulations have been properly disclosed and applied within the five-year window.

Audit Report & Regulatory Filing

Preparation of the signed audit report, Form 10B/10BB for income tax, Schedule VII for the Charity Commissioner, and FC-4 support for FCRA entities — with all filings co-ordinated and tracked.

Our Process

Registration & Statute Review

Identifying all applicable statutes — Charity Commissioner registration, 12A/80G status, FCRA registration — and the audit and filing obligations attached to each.

Books & Records Collection

Receipt and review of receipts and payments accounts, income and expenditure statements, balance sheet, bank statements, investment records, and trustee minutes.

Application of Income Verification

Computing the application of income for charitable purposes, identifying shortfalls, and confirming compliance with the 85% application requirement and permissible accumulation provisions.

Compliance & Reporting

Verification of investment compliance, related party transactions, FCRA utilisation norms, and all other items required for the audit report and Form 10B/10BB or FC-4.

Filing & Submission Support

Preparation and filing of the audit report with the income tax portal and Charity Commissioner, with FCRA annual return support where applicable.

Why It Matters

✓Covers Bombay Public Trusts Act, Income Tax Act, and FCRA in one engagement

✓Protects 12A/80G exemption through timely and accurate compliance

✓Verifies charitable application meets the 85% requirement

✓FCRA audit and FC-4 support keeps foreign contribution registration intact

✓Identifies Section 13 violations before they trigger exemption cancellation

✓Investment compliance review prevents inadvertent loss of exemption

✓Strengthens donor and CSR funder confidence in the trust's governance

✓All Charity Commissioner and income tax filings handled end-to-end

Frequently Asked Questions

All trusts registered with the Charity Commissioner under the Bombay Public Trusts Act are required to have their accounts audited annually. Trusts holding 12A registration are required to file Form 10B or 10BB — which must be prepared by a Chartered Accountant. FCRA-registered entities must have their foreign contribution accounts audited separately. The applicable requirements depend on your trust's registrations.

A trust claiming exemption under Sections 11 and 12 of the Income Tax Act must apply at least 85% of its income for charitable or religious purposes in the same year. Income not applied in the year can be accumulated for up to five years with proper disclosure — or set aside for specific projects with the approval of the income tax authority. The audit verifies compliance with this requirement.

Form 10B is the audit report required for trusts whose total income before exemptions exceeds ₹5 crore, or that have received foreign contributions, or that have applied for accumulation. Form 10BB is required for all other 12A-registered trusts. We determine the applicable form at the start of each engagement.

The FCRA audit covers receipts and utilisation of foreign contributions received in the designated FCRA bank account, compliance with permitted purposes and utilisation limits, maintenance of separate books of account for foreign funds, and preparation of the FC-4 annual return. The audit must be conducted by a Chartered Accountant.

Keep your trust's exemptions and registrations intact.

Talk to our team about a comprehensive trust audit covering all your statutory and regulatory obligations.