Tax Work

Income Tax Filing- NPO/Charitable Trusts

Income Tax Filing NPO/Charitable Trusts

Income tax filing for NPOs and charitable trusts involves reporting donations received, funds utilized, and adherence to regulations governing tax-exempt status. Proper filing ensures continued eligibility for tax benefits and compliance with legal requirements.

Requirements

For Income Tax Filing for NPOs/Charitable Trusts, you will need:

  • Registration: The NPO or Charitable Trust must be registered under the relevant law (e.g., Societies Registration Act, Trust Act, or Companies Act under Section 42 for non-profits).
  • National Tax Number (NTN): A valid NTN registered with the FBR is required.
  • Tax Exemption Certificate: If applicable, a tax exemption certificate issued by the FBR should be obtained and updated.
  • Financial Statements: Audited financial statements, including the Income and Expenditure Statement, Balance Sheet, and Cash Flow Statement.
  • Bank Statements: Complete bank statements for the financial year.
  • Donation Receipts: Proper records of all donations received, including donor details, amounts, and purposes.
  • Previous Year’s Tax Returns: Copies of previous years’ tax returns, if applicable.
  • Utilization of Funds: Detailed records showing how funds, especially donations, were utilized for the charitable purposes.
  • Compliance with Regulatory Authorities: Ensure compliance with SECP, FBR, and other relevant regulatory bodies.

How TaxWork.pk will assist you with Income Tax Filing for NPOs/Charitable Trusts:

  • Documentation Review: We thoroughly review your financial statements, donation records, and other documentation to ensure accuracy and compliance.
  • Tax Calculation and Exemption Management: We calculate the tax liability, if any, and manage the process of claiming tax exemptions based on your NPO’s or Trust’s status.
  • Tax Return Filing: TaxWork.pk will prepare and file the tax return on your behalf, ensuring all relevant forms and documents are submitted correctly to the FBR.
  • Regulatory Compliance: We help ensure your NPO or Trust remains compliant with SECP, FBR, and other regulatory requirements, avoiding any legal issues.
  • Audit Support: If your NPO or Trust is selected for an audit, we provide full support in preparing and submitting the necessary documentation and managing interactions with the tax authorities.

FAQ's 

Yes, even if your NPO or Charitable Trust is tax-exempt, filing a tax return is mandatory to maintain compliance and record-keeping.

Your NPO must comply with all regulatory requirements, including timely filing of tax returns, maintaining proper financial records, and ensuring funds are used strictly for charitable purposes.

You need to provide a valid tax exemption certificate, financial statements, and detailed records of how the funds were used for charitable activities.

Yes, TaxWork.pk can assist with the application process for obtaining or renewing a tax exemption certificate from the FBR.

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