A Section 8 company is a non-profit, and while its charitable income can be exempt, it must still file an income tax return each year. Where registered under 12A, it files Form ITR-7 and must apply its income to its objects. Samkhya files your Section 8 company’s income tax return accurately and on time.
A Section 8 company is a company formed for charitable or not-for-profit purposes, and it must file an income tax return every year. Where it is registered under Section 12A/12AB, the income it applies to its charitable objects is exempt under Sections 11 and 12, provided it applies at least 85% of its income to those objects, and it files Form ITR-7. Its accounts must be audited, and the return is generally due by 31 October. A Section 8 company with 12A registration also typically holds 80G registration, which lets its donors claim a deduction. If it is not registered under 12A, its income is taxed like that of any company. Filing keeps the exemption intact and the company compliant.
Filing the Section 8 return brings clear benefits:
A Section 8 company’s taxation has these features:
A Section 8 return involves:
A Section 8 return is required for:
Filing a Section 8 company’s return begins with the audit of its accounts and the computation of income and its application to the charitable objects. Where the company holds 12A registration, the income applied to its objects, at least 85%, is shown as exempt under Sections 11 and 12, and the details of 12A and 80G registration are reported. The income, application, and any taxable surplus are entered in Form ITR-7, and the return is filed on the income tax portal with the digital signature of a director. The return, with audited accounts, is generally due by 31 October. Accurate reporting of the application of income is what keeps the exemption intact.
For the Return:
For Filing:
Filing a Section 8 return follows a clear sequence:
Filing your Section 8 company return with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team handles the audit, the application of income, and ITR-7 filing.
Once the return is filed:
A Section 8 company registered under 12A/12AB enjoys an exemption on the income it applies to its charitable objects under Sections 11 and 12, provided it applies at least 85% of its income to those objects; any shortfall can be taxed. It files Form ITR-7, with audited accounts, generally due by 31 October. Holding 80G registration alongside lets the company’s donors claim a deduction, which supports fundraising. If the company is not registered under 12A, its income is taxed like a company’s, so maintaining the registrations and the 85% application is central. Accurate filing each year keeps both the exemption and the donor benefits intact, and avoids the penalty for non-filing.
| Feature | Detail |
| Form | ITR-7. |
| Exemption | Under 12A, on applied income. |
| Application | At least 85% to objects. |
| Donor Benefit | 80G registration. |
| Due Date | 31 October (audit). |
| If No 12A | Taxed as a company. |
Does a Section 8 company have to file a return?
Yes. Every Section 8 company must file an income tax return each year, even though its charitable income may be exempt.
Which form does a Section 8 company file?
A Section 8 company registered under 12A files its income tax return in Form ITR-7.
Is a Section 8 company’s income tax-free?
Where it is registered under 12A and applies at least 85% of its income to its charitable objects, that income is exempt under Sections 11 and 12.
What is the 85% application rule?
A charitable entity must apply at least 85% of its income to its objects in the year to retain the exemption; any shortfall can be taxed.
What if it is not registered under 12A?
Without 12A registration, a Section 8 company’s income is taxed like that of any other company.
When is the return due?
With audited accounts, a Section 8 company’s return is generally due by 31 October.
