When are we required to maintain books and records?

Financial Reporting
1

We’re a small registered NPO. When are we required to maintain prescribed books and records?

2

Legally, Section 347 kicks in above a certain income level.

It applies where your total income, before the registered-NPO exemption, is more than the maximum amount not chargeable to tax.

In practice, every operating NPO should keep complete records, because you will need them for audit, your return, registration and donor reporting.

Source:
Income-tax Act, 2025 - section [347]; Income-tax Rules, 2026 - rule [187]