Trust Audit Services

Trust audit is the independent examination of accounts, donations, and fund utilisation of public charitable, religious, and educational trusts to confirm that resources are being used in line with the trust deed, applicable state Trust Acts, and tax exemption conditions.

With closer scrutiny from the Charity Commissioner, Income Tax authorities, FCRA regulators, and donors funding CSR projects, every registered trust — small or large — needs a structured audit and compliance framework that protects exemptions and builds donor trust.

We offer end-to-end trust audit services covering statutory audit under state Trust Acts, Income Tax audit under Sections 12A and 10(23C), FCRA audits, and CSR fund-utilisation reviews — combining technical rigour with practical, sector-specific guidance for trustees and finance teams.

Our Trust Audit Services

Statutory Trust Audit

Audit of public charitable and religious trusts under state Trust Acts with reporting in prescribed schedules.

Income Tax Audit (10B / 10BB)

Audit under Sections 12A and 10(23C) of the Income Tax Act with timely filing of Form 10B or 10BB.

FCRA Audit & FC-4 Filing

Audit of foreign contributions, utilisation review, and filing of Form FC-4 with the Ministry of Home Affairs.

CSR Implementing Trust Audit

Verification of CSR funds received and utilised, end-use reporting, and support for utilisation certificates.

Donation & Receipts Audit

Audit of corpus donations, voluntary contributions, anonymous donations, and Form 10BD / 10BE compliance.

Application of Income Review

Review of 85% application of income, accumulation under Form 10, investments under Section 11(5), and inter-trust donations.

Internal & Special Audits

Internal audit, fund-flow reviews, and special audits on trustee or donor request to address specific concerns.

Compliance & Filings Support

Assistance with 12AB / 80G renewals, Charity Commissioner filings, change reports, and statutory registers.

Our Audit Process

Engagement & Trust Review

Review of trust deed, registrations, prior audit reports, and identification of applicable laws.

Records Verification

Examination of cash book, ledgers, donation receipts, vouchers, and bank statements.

Compliance Testing

Verification of object-wise utilisation, exemption conditions, and statutory thresholds.

Reporting

Audit report, Schedules under Trust Act, and tax forms with management observations.

Filings & Submissions

Filing with Charity Commissioner, e-filing of Form 10B / 10BB / FC-4 on respective portals.

Why Trust Audit Matters

✓ Mandatory under state Trust Acts and Income Tax Act

✓ Protects 12A, 80G, and 10(23C) tax exemptions

✓ Builds donor and stakeholder confidence

✓ Ensures funds are used for stated trust objects

✓ Supports FCRA and foreign contribution compliance

✓ Strengthens CSR partner credibility

✓ Detects misappropriation and irregularities

✓ Avoids penalties and de-registration risks

FAQs on Trust Audit Services

Which trusts are required to be audited?

Public charitable and religious trusts registered under state Trust Acts such as the Maharashtra Public Trusts Act, 1950 are required to get their accounts audited if their gross income exceeds the threshold prescribed by the respective state. Trusts claiming exemption under Sections 12A or 10(23C) of the Income Tax Act also need a tax audit.

What is the difference between Form 10B and Form 10BB?

Form 10B is the audit report for trusts and institutions claiming exemption under Section 12A or Section 10(23C) where total income exceeds prescribed limits or where foreign contributions or foreign application of income are involved. Form 10BB applies to other smaller trusts. The applicable form depends on income, foreign receipts, and nature of activities.

Who can audit a trust?

Only a Chartered Accountant in practice or a firm of Chartered Accountants can audit a public trust under both the Trust Act and the Income Tax Act. The auditor must be independent of the trustees and the day-to-day management of the trust.

What additional audits apply if the trust receives foreign contributions or CSR funds?

Trusts receiving foreign contributions must comply with the Foreign Contribution (Regulation) Act and submit annual audited accounts in Form FC-4. Trusts acting as CSR implementing agencies must maintain separate records of CSR funds, comply with Form CSR-1 registration, and provide utilisation certificates to donor companies.

What is the 85% application rule?

Trusts claiming exemption under Section 11 are generally required to apply at least 85% of their income for charitable or religious purposes during the relevant year. Where this is not possible, the trust may opt to accumulate the unutilised income subject to specific conditions, including filing of Form 10 within prescribed timelines.

What is the role of Form 10BD and Form 10BE?

Form 10BD is a statement of donations filed by trusts approved under Section 80G or Section 35, capturing donor-wise details of contributions received during the year. Form 10BE is the certificate of donation issued to donors based on Form 10BD, which they use to claim their tax deduction.

What happens if a trust does not get its accounts audited?

Non-compliance can lead to penalties under the applicable state Trust Act, denial of tax exemption under Section 12A or Section 10(23C), loss of 80G donor benefits, suspension or cancellation of FCRA registration, and personal liability of trustees for irregularities and misuse of funds.

Keep Your Trust Compliant, Credible, and Ready

Partner with our trust audit experts to safeguard exemptions, satisfy donors, and meet every regulatory requirement.

Talk to a Trust Auditor