Clarification is required regarding Form 10 and the 85% application of the income requirement for a charitable organisation. If an organisation receives a donation/grant in August 2025 for a period of one year, and the renewal is expected in July 2026, how should the period be calculated for income application and accumulation purposes?
Should it be calculated based on:
the grant period, i.e. August 2025 to July 2026; or
The financial year, i.e. up to 31 March 2026?
Also, what is the last date for filing Form 10 every year?
85% of income received should be applied in the financial year (tax year) for such receipt. If there is a deficit in 85% application by end of tax year i.e. 31st March, then deemed application (Form 9A) or accumulation (Form 10) provisions can be opted in case of shortfall in application in the tax year, in your case by 31st March 2026.
Last date for filing Form 10 or 9A as the case is the last date for filing ITR-7. However, the 9A/10 should be filed first followed by ITR7 and not vice versa.