Balance Sheet Threshold for Organizations
The threshold limit for balance sheet reporting varies for different types of organizations in India. Non-profit organizations, including charitable and social service entities, have specific requirements based on their annual income and activities.
For organizations, charitable trusts, and social service entities in India, the threshold limit for balance sheet reporting depends on their annual income:
◘ Small Charitable and Social Service Organizations:
Non-profit organizations with annual income up to a certain limit are considered “”small organizations.”” As of the last update, organizations with an annual income of Rs. 2,50,000 or less are exempt from filing income tax returns and balance sheets under Section 12A of the Income Tax Act.
Such entities still need to maintain proper books of accounts and financial records. Balance Sheet threshold
◘ Tax-Exempt Status:
Charitable and social service organizations seeking tax exemption under Section 12A and 80G of the Income Tax Act must provide a balance sheet along with their annual income and expenditure statement.
This balance sheet is necessary to demonstrate transparency and accountability in their financial activities.
◘ Audit Requirements:
Organizations with an annual income exceeding the threshold limit are required to get their accounts audited by a chartered accountant.
The audit report and the audited balance sheet are then submitted to the relevant authorities. As of my last update, the threshold for mandatory audit was Rs. 10,00,000 of annual income for charitable and social service organizations.
Please note that It’s essential to consult the latest resources or a financial expert for the most up-to-date and accurate information regarding threshold limits for balance sheet reporting for charitable and social service organizations in India.
Always refer to the latest official government notifications and guidelines to ensure compliance with the law.
To visit: https://www.mca.gov.in/
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