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Section 8 Complainces

🌱 Section 8 Company Compliances in India

(Non-Profit / NGO Entities under Companies Act, 2013)

A Section 8 Company is a non-profit organization formed to promote charitable activities such as education, art, science, social welfare, environment protection, and more. While these companies enjoy tax and legal benefits, they are still required to comply with multiple statutory requirements under the Companies Act, Income Tax Act, and other applicable laws.

Maintaining proper compliance is essential to retain the company’s non-profit status and credibility.

📌 Key ROC Compliances for Section 8 Companies

Compliance
Description
Timeline
Board Meetings
Minimum 2 meetings in a year (for small companies) or 4 (for others)
As applicable
Annual General Meeting (AGM)
Required to be held annually
Within 6 months from financial year-end
Filing of Annual Return – MGT-7
Details of members, shareholding, etc.
Within 60 days of AGM
Filing of Financials – AOC-4
Audited financials must be submitted
Within 30 days of AGM
Director KYC – DIR-3 KYC
KYC of directors
By 30th September annually
MBP-1 & DIR-8
Disclosures by directors regarding interest and disqualification
First Board Meeting of the financial year
Appointment of Auditor – ADT-1
Auditor appointment filing
Within 15 days of AGM

💼 Income Tax & Audit Compliances

Compliance
Description
PAN & TAN
Mandatory for all Section 8 companies
Income Tax Return (ITR-7)
Mandatory even if income is exempt
Audit of Accounts
Mandatory under Section 12A(b) of Income Tax Act
80G & 12A Registration
Required for tax exemptions for the company and donors
Quarterly TDS Returns
If TDS is deducted, file returns (Form 24Q/26Q)
Form 10B
Audit report for institutions claiming exemption under Section 12A

🧾 Other Important Compliances

  • CSR (if applicable) – Required for companies meeting CSR criteria (though rare for Sec 8s)
  • FCRA Registration – Mandatory for receiving foreign donations
  • Professional Tax / GST / IEC – As applicable based on state laws and business activity

⚠️ Penalties for Non-Compliance

  • Penalty of up to ₹1,00,000 for the company
  • Directors may be fined up to ₹25,000 each
  • In severe cases, the license under Section 8 may be revoked

💡 Why Compliance Matters for NGOs and Sec 8 Companies

  • Maintains credibility with donors, authorities, and stakeholders
  • Ensures smooth operations without legal interruptions
  • Essential to retain tax benefits and fundraising capabilities

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