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JASMINE KAUR HUDA

Chartered Accountant

Published on: Mar 27, 2026

Filing of Form 10BB for Section 8 Companies – A Practical Guide

Section 8 companies,  main focus is usually on social work, education, healthcare, or other charitable activities. However, to continue enjoying income tax exemption, certain compliances must be followed every year. One of the most important among them is filing Form 10BB.

Many Section 8 companies lose their tax exemption not because they did anything wrong, but simply because this form was missed or filed late.

What Exactly is Form 10BB?

Form 10BB is an audit report issued by a Chartered Accountant. Through this report, the Income Tax Department checks whether your Section 8 company is genuinely using its income for charitable purposes and not for personal or commercial benefit.

In simple words, Form 10BB answers three basic questions:

  • How much income did the company earn?
  • Where was the money spent?
  • Was it spent only for the approved charitable objects?

When is Form 10BB Required?

Form 10BB must be filed if your Section 8 company:

  • Is registered under Section 12AB, and
  • Claims income tax exemption under Sections 11 and 12

If exemption is claimed, filing Form 10BB is compulsory. There is no escape from this compliance.

Due Date for Filing

The due date for filing Form 10BB is 30th September of the relevant Assessment Year, unless the government extends it.

For example, for FY 2024–25, the form must be filed by 30 September 2025.

Missing this deadline can convert your entire income into taxable income.

What Information is Checked in Form 10BB?

During the audit, the CA verifies:

  • Whether income is applied in India for charitable purposes
  • Whether any income is kept aside (accumulated) properly
  • Whether any benefit is given to directors, trustees, or related parties
  • Whether investments are made only in permitted modes
  • Whether foreign donations, if any, are properly disclosed

If anything is found to be against the law, exemption can be denied.

How is Form 10BB Filed?

Form 10BB is filed online on the Income-tax e-filing portal.

The process is simple:

  • The Chartered Accountant uploads the form using their DSC
  • The Section 8 company logs in and accepts the form
  • Only after this, the Income Tax Return can be filed smoothly

What Happens if Form 10BB is Not Filed?

This is where many Section 8 companies get into trouble.

If Form 10BB is not filed or is filed late:

  • Exemption under Sections 11 and 12 may be rejected
  • Entire income may become taxable
  • Income tax notices may be issued
  • Penalties and interest may apply

Even genuine NGOs face tax demands just because this one form was ignored.

Practical Advice for Section 8 Companies

Do not treat Form 10BB as a last-minute formality. Keep proper records of:

  • Donations received
  • Expenses incurred
  • Bank statements
  • Investment details

When records are clean, audit becomes easy and filing is stress-free.

Final Words

Form 10BB is the backbone of tax compliance for Section 8 companies. It protects your tax exemption and shows that your organisation is transparent and compliant.

If handled on time and properly, it is a smooth process. If ignored, it can create unnecessary tax and legal issues.

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