Form 112 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 112 is the audit report that a registered non-profit organisation must furnish under section 348 of the Income-tax Act, 2025. It is long: a Part A, a Part B with two columns (small and large organisations), and many Schedules. This article covers the first half, Part A, Part B and Schedules A to R, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. The second half, Schedules S to ZL, the verification and the Notes, is in the companion article. Later notifications should be checked.
Rule 188 requires the report of audit under section 348 in Form 112, one month prior to the due date of furnishing the return of income under section 263(1). Part A identifies the auditee and tests whether it is small or large. Part B (rows 7 to 43) then asks the same questions of both, with different Schedules for small and large organisations. The audit is by an accountant; Note 20 says it must be a chartered accountant.
The rule and the section
Section 348 of the Income-tax Act, 2025 requires the accounts of a registered non-profit organisation to be audited by an accountant where its total income, without giving effect to that Part, exceeds the maximum amount not chargeable to income-tax, and the report of audit to be furnished by the prescribed date in the prescribed form, signed and verified by the accountant. See sections 347 to 350. Rule 188 names Form 112 and the time: one month before the due date under section 263(1). Our post on rule 188 covers the rule. Row 15 of Part B points to the books-of-account rule, rule 187.
If your trust, society or section 8 company needs the books and the audit report lined up with the return, our 12A, 80G and CSR registration team works with auditors on exactly this file.
Part A: the auditee
Part A has six rows: name (Note 1), address (Note 2), Permanent Account Number, tax year, other addresses if applicable (Note 3, the address decided by management by resolution and intimated to the jurisdictional Assessing Officer), and row 6 with three tests (Note 5):
| Row 6 | Test as printed |
|---|---|
| (a) | Whether regular income under section 335 for the tax year exceeds five crore rupees |
| (b) | Whether foreign contribution received during the tax year exceeds ten lakh rupees |
| (c) | Whether application of income outside India during the tax year exceeds ten lakh rupees |
If any answer is Yes the auditee is a large registered NPO and Column (2) of Part B applies; otherwise it is small and Column (1) applies. Note 4 defines "small registered NPO" with the same three limits (Rs. 1000000 in clauses (b) and (c)); any organisation that fails a condition is a large one, and the form calls every registered non-profit organisation the "auditee".
Part B: rows 7 to 43
Many rows are Yes or No questions with a Schedule to fill when the answer is Yes. The table groups them.
| Rows | Subject | Where the row sends the auditor |
|---|---|---|
| 7 to 11 | Whether a registered non-profit organisation under section 355(g); type (Note 6 code); established under an instrument; recognition under the earlier or the present Act; objects (Note 11) | Schedule A (large, if recognised) |
| 12 to 14 | Change in management; modification of objects; activities commenced where provisional recognition was granted | Schedule B (change in management); Schedule C (activities commenced) |
| 15 | Books of account and documents kept as prescribed under rule 187 | Schedule D (large); Yes/No for small |
| 16 to 19 | Advancement of any other object of general public utility; business undertaking under section 344; business income under section 345; tax deducted at source on receipts | E1 (large) or E2 (small); F; G; H (large) |
| 20 and 21 | Whether section 353 applies; whether Form 113 has been furnished | none |
| 22 | Donations: reported and not reported in Form 113, total, foreign, corpus, anonymous donations taxable under section 337 (Table: serial number 1), and donations required to be applied | Schedules I, U, T (large) |
| 23 to 30 | Regular income under section 335; income applied outside India; regular income to be applied in India; application of income; taxable regular income (regular income less application, accumulated income and deemed accumulated income); specified income; residual income under section 355(j); total income | J; W (large); L (small) or K (large); N (small) or M (large) |
| 31 to 36 | Application out of sources other than the total income; section 353; religious expenditure and its percentage of total income; related persons (row 35 code, name, PAN, Aadhaar number if allotted, address and contribution); transactions with related persons | P (small) or O (large); Q; R (large) |
| 37 to 39 | Specified violation; depreciation claimed contrary to section 341(3)(a); deduction claimed under section 11 in view of section 333 | Schedule S for violation (second half) |
| 40 to 43 | Loans, deposits and specified sums above the limit in section 185; receipts above the limit in section 186; repayments above the limit in section 188; tax deduction or collection under Chapter XIX-B | Schedules ZI, ZJ, ZK, ZL-1 to ZL-3 (second half) |
Row 27 is a small table with the formula printed: taxable regular income (E) equals regular income (A) less the total of application of income (B), accumulated income under section 342 (C) and deemed accumulated income under section 343 (D), and "can't be negative". Row 25 is row 23 less row 24, and row 30 is the sum of rows 27(E), 28 and 29. The form prints these formulas; it states no rate.
Schedules A to R in order
- Schedule A. Every recognition valid during the tax year under the earlier Act or the present Act: the section, date, unique recognition number, authority granting it and effective date. Where recognition followed provisional recognition, the provisional details are not required.
- Schedule B. (a) Every author, founder, settlor, trustee, member, director, 5 per cent shareholder and office bearer at any time in the tax year, with relation, identification, address and any change during the year; (b) beneficial owners (5 per cent or more) of any of them that is not an individual.
- Schedule C. Date of commencement of activities; whether an application for registration under section 332(3) (Table: serial number 3) has been filed; its date, status and registration details.
- Schedule D. Books of account and other documents: nature (Note 12 codes), whether kept in a computer system, whether at the registered office, the address, date of the management decision and date of intimation to the Assessing Officer under rule 187(4) where kept elsewhere, and whether audited.
- Schedule E1 (large) and E2 (small). Whether a commercial activity is carried on under section 346, the percentage of receipts, whether it is in the course of the general public utility object, and gains under section 335(e). E1 adds a project-wise or institution-wise table of aggregate annual receipts; E2 asks for one aggregate figure.
- Schedules F and G. F is the business undertaking (nature, business code, separate books, aggregate annual receipts and gains); G is the business under section 345, with the same items and a question on whether it is incidental to the attainment of the objects.
- Schedule H. Receipts on which tax was deducted at source (section 393(1), Table: serial numbers 1, 6 and 8(ii)): the deductor, its TAN, amount, tax deducted, the provision, and a split of the receipt between commercial activity, others and the Schedules E1, E2, F and G. The copy prints the column numbers from (2) onward and the heads break across lines, so the split is described in outline only.
- Schedule I. Donations not reported in Form 113: those qualifying under section 133(1)(b)(vi); others, split into cash donations above Rs. 2000, donations from other registered non-profit organisations not eligible for deduction and others; donations without donor identification; donations in kind; anonymous donations in three parts (not taxable, up to Rs. 100000 or 5 per cent of donations whichever is higher, and others taxable at 30 per cent under section 337 (Table: serial number 1)); any other; and a total.
- Schedule J. Regular income in five lines: section 335(a), (b), (c), (d) donations and (e) commercial gains, with the total (printed as item 5).
- Schedules K and L. Application of income: total applied for charitable or religious purposes in India, donations, object-wise application, application above Rs. 50 lakh to one person with TDS details, the amounts not actually paid, earlier amounts, the disallowances (items tied to sections 35(b)(i), 36(4), 36(5), 36(6), 341(1), 341(3), 338(a), 342) and the total allowable application, then deemed application under section 341(5) and capital gains under section 341(9). Schedule K (large) has a split between electronic and other modes and a revenue and capital bifurcation; Schedule L (small) is shorter.
- Schedules M and N. Specified income under section 337, lines (a) to (m) in M and 1 to 13 in N, each following the Table of section 337 (anonymous donations, benefit to related persons, application outside India, investment contrary to section 350, and so on), with a total.
- Schedules O and P. Application out of earlier accumulation, deemed application, 15 per cent deemed accumulated income of earlier years, corpus, borrowed funds and others, with the same Rs. 50 lakh table in O.
- Schedule Q. Why section 353 applies (non-compliance with section 346, 347, 348 or 349) and the computation of income chargeable under it, with the expenditure to be disallowed listed.
- Schedule R. Eight questions on dealings with related persons, (a) to (h): loans, use of property, payments for services, services made available, purchase of shares or property, sale, diversion of income or property, and investment in a concern where a related person has a substantial interest. Each answer of Yes sends the auditor to Schedule ZD-1 to ZD-10.
Need help with the audit report of a non-profit organisation?
A Form 112 file is only as good as the books and schedules behind it, and the large-organisation column asks for a lot more. If you want the donation, application and related-person schedules checked before the auditor signs, speak to our 12A, 80G and CSR registration desk.
Key takeaways
- Form 112 is the audit report under section 348, due one month before the return due date under section 263(1).
- Part A decides, through three tests, whether the auditee is small or large.
- Part B has two columns; the Schedule a row points to depends on the column.
- Schedules A to R cover recognition, management, books, commercial activity, donations, regular income, application, specified income, section 353 and related persons.
- The second half of the form, Schedules S to ZL, the verification and the Notes, is in the companion article.
Read next
- Form 112, second half: Schedules S to ZL and the Notes
- Forms 113 and 114: statement of donations and certificate of donation
- Rule 188: audit report in Form 112
- Rule 187: books of account of a registered non-profit organisation
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.