Charity Commissioner Submission & BPT Act Compliance for Public Trusts

Charity Commissioner Submission — BPT Act Compliance for Public Trusts in Maharashtra

Every public charitable or religious trust in Maharashtra is regulated by two separate and independent legal frameworks. The first is the Income Tax Act, 1961 — which governs the trust's claim to income tax exemption under Section 11 and requires annual filings such as Form 10B, Form 10BB, Form 10BD, and ITR-7 on the income tax portal. The second is the Bombay Public Trusts Act, 1950 (BPT Act) — the state law that requires every public trust in Maharashtra to register with the Charity Commissioner, submit audited annual accounts in prescribed forms, obtain prior approval for significant transactions, and report every change in trustees or trust property. Both frameworks must be complied with independently. Perfect income tax compliance does not satisfy BPT Act obligations, and BPT Act compliance does not fulfil income tax requirements.

N D Savla & Associates, Chartered Accountants based in Mumbai, provides comprehensive Charity Commissioner submission services for public charitable and religious trusts in Maharashtra. We handle BPT Act registration for new trusts, annual Schedule VIII (accounts) and Schedule IX (audit report) submissions to the Charity Commissioner, compliance with prior approval requirements for property transactions, reporting of trustee changes, and rectification of long-pending Charity Commissioner filings for trusts that have allowed their BPT Act compliance to lapse. We integrate Charity Commissioner compliance with the complete income tax compliance cycle — Form 10B, Form 10BB, and all annual trust filings — so that trustees receive a single, co-ordinated compliance service covering both state law and central income tax obligations.

The Charity Commissioner compliance gap is one of the most common and most dangerous compliance failures among charitable trusts in Maharashtra. Many well-intentioned trusts that are meticulous about their income tax filings — always filing Form 10B on time, always getting their Section 12AB registration renewed — have not submitted their Schedule VIII accounts to the Charity Commissioner for years, sometimes decades. This creates a compounding liability: pending annual returns accumulate, trustees become personally liable for breach of trust under the BPT Act, and the Charity Commissioner has the power to remove trustees and apply to court for the appointment of a Scheme for the administration of the trust. All Charity Commissioner submissions for Maharashtra trusts are filed through the Maharashtra Government's trust portal at mahacharitytrust.maharashtra.gov.in.

What Is the Charity Commissioner and Why Does It Matter?

The Charity Commissioner of Maharashtra is a statutory authority established under the Bombay Public Trusts Act, 1950. The office is headed by the Charity Commissioner and supported by Joint Charity Commissioners, Deputy Charity Commissioners, and Assistant Charity Commissioners across Maharashtra. The Charity Commissioner maintains a register of all public trusts in the state, supervises their administration, ensures that trust property is used for the purposes for which the trust was created, and exercises quasi-judicial powers to protect the interests of beneficiaries of public trusts.

The Charity Commissioner is not merely an administrative registry — it is a regulatory authority with significant powers. It can inspect the accounts and records of any public trust; summon trustees to appear and produce documents; direct trustees to file pending accounts; remove trustees found to be in breach of trust; apply to the court for framing a Scheme to administer a trust when the trust's administration has gone wrong; and levy penalties for non-compliance. Trustees who ignore the Charity Commissioner do so at significant personal risk.

Bombay Public Trusts Act, 1950 — The Governing Law for Maharashtra Trusts

The Bombay Public Trusts Act, 1950 (BPT Act) is the primary state legislation governing public charitable and religious trusts in Maharashtra (and historically in Gujarat, before Gujarat enacted its own Public Trusts Act). Every public trust in Maharashtra — whether a charitable trust, a religious trust, a wakf (with some exceptions for wakfs regulated under the Wakf Act), or any trust created for a public purpose — is subject to the BPT Act from the date of its creation. The BPT Act prescribes: the obligation to register with the Charity Commissioner; the obligation to maintain accounts and submit them annually; the requirement to obtain prior approval for specified transactions; the duty to report changes in trustees and trust property; and the consequences of non-compliance.

Dual Compliance — Income Tax Act and BPT Act Run Separately

The distinction between income tax compliance and Charity Commissioner compliance cannot be overstated. Income tax compliance — Section 12AB registration, Form 10B/10BB filing, ITR-7 submission — is governed by the Income Tax Act, 1961, administered by the Central Board of Direct Taxes, and filed on the income tax portal at incometax.gov.in. Charity Commissioner compliance is governed by the BPT Act, 1950, administered by the Maharashtra Government, and filed on the trust portal at mahacharitytrust.maharashtra.gov.in. The two portals, the two sets of forms, the two sets of deadlines, and the two regulatory authorities are entirely independent. A trust must satisfy both frameworks simultaneously, every year.

Registration of Public Trusts Under the Bombay Public Trusts Act

Who Must Register Under the BPT Act?

Every public trust created or existing in Maharashtra must be registered under the BPT Act. This includes:

• Public charitable trusts created under a trust deed for the benefit of the general public or a specific class of the public
• Religious trusts created for the worship of a deity, maintenance of a religious institution, or performance of religious rites for public benefit
• Societies registered under the Societies Registration Act, 1860 if they hold property for a public purpose and qualify as a public trust under the BPT Act
• Educational trusts, hospital trusts, and other institutions created for specific charitable purposes in Maharashtra
• Temple trusts, mosque trusts (other than wakfs regulated under the Wakf Act), church trusts, and other religious institution management trusts

A trust is not exempt from BPT Act registration merely because it has registered under Section 12AB of the Income Tax Act or has obtained 80G approval. The BPT Act has its own registration regime, and every public trust must comply with it independently of its income tax status.

How to Register a New Trust With the Charity Commissioner

New public trusts in Maharashtra must apply for registration with the Deputy Charity Commissioner of the district in which the trust is situated. The application for registration is filed online through the Maharashtra trust portal at mahacharitytrust.maharashtra.gov.in. The registration process involves:

• Filing an application in the prescribed form with the details of the trust, its trustees, its objects, and its properties
• Uploading a self-certified copy of the trust deed or instrument of creation
• Providing details of all immovable and movable properties belonging to the trust, including a list of immovable properties with survey numbers, locations, and current market values
• Furnishing a list of all trustees with their names, addresses, PAN, and dates of appointment
• Paying the prescribed registration fee based on the value of the trust property
• The Deputy Charity Commissioner may call for a personal appearance of the trustees or additional documents before completing the registration

After registration, the trust is assigned a unique Trust Registration Number (Change Report Number). This number must be quoted on all future submissions to the Charity Commissioner. The Charity Commissioner enters the trust in the public register of trusts, which is available for public inspection.

Consequences of Operating Without BPT Act Registration

A public trust in Maharashtra that is not registered with the Charity Commissioner is operating in breach of the BPT Act. The Charity Commissioner can take suo motu cognisance of an unregistered public trust and initiate registration proceedings. Any person can file a complaint with the Charity Commissioner about an unregistered trust. The trustees of an unregistered trust are personally liable for all transactions involving trust property. Trust property cannot be sold, transferred, or mortgaged without Charity Commissioner sanction — and an unregistered trust cannot even validly apply for such sanction.

Annual Submissions to the Charity Commissioner — Schedule VIII and Schedule IX

The most time-sensitive and most commonly defaulted compliance obligation under the BPT Act is the annual submission of audited accounts and the auditor's report to the Charity Commissioner. Every public trust must comply with these annual filings, irrespective of the size of the trust's income or the value of its assets.

Schedule VIII — Annual Accounts Submission

Schedule VIII under the BPT Act is the annual statement of accounts that every public trust must submit to the Charity Commissioner. It comprises:

• Balance sheet of the trust as at the end of the financial year — showing all assets (immovable property, investments, cash and bank balances, debtors) and all liabilities (creditors, loans, dues)
• Income and expenditure account for the financial year — showing all income received (donations, interest, rent, offering) and all expenditure incurred (for charitable purposes, administration, management)
• Receipts and payments account — a cash-based summary of all receipts and all payments during the year
• Statement of immovable properties owned by the trust at year-end, with any changes (acquisition or disposal) during the year
• Statement of investments held by the trust at year-end
• Declaration by the trustees that the accounts are true and correct

The Schedule VIII accounts must be audited by a Chartered Accountant before submission. The same CA who conducts the income tax audit (filing Form 10B or Form 10BB for income tax purposes) typically also prepares and certifies the Schedule VIII accounts for Charity Commissioner purposes. N D Savla & Associates provides integrated audit services covering both income tax audit requirements and Charity Commissioner Schedule VIII requirements for all trust clients.

Schedule IX — Auditor's Report to the Charity Commissioner

Schedule IX is the auditor's report on the trust's accounts that accompanies the Schedule VIII submission. The auditor's report under the BPT Act contains the CA's certification of the accounts, specific observations on compliance with the BPT Act requirements (such as whether accounts have been maintained properly, whether trust property has been applied for the trust's objects, whether any trustee has benefited from trust funds contrary to the trust deed), and any qualifications or adverse comments the CA considers necessary. The Schedule IX report is distinct from the Form 10B/10BB audit report filed for income tax purposes — it is specifically tailored to BPT Act compliance requirements.

Due Date for Annual Submissions to the Charity Commissioner

The annual Schedule VIII and Schedule IX submissions must be filed with the Charity Commissioner within 6 months of the end of the financial year. For trusts following the standard April–March financial year, this means the annual Charity Commissioner submission is due by September 30 of each year. For trusts whose financial year does not follow April–March, the due date is 6 months from their financial year-end. Where the Charity Commissioner extends the due date by general notification, the extended date applies.

Filing Through the Maharashtra Charity Commissioner Online Portal

Maharashtra has progressively moved to online filing of Charity Commissioner submissions. All annual accounts, auditor's reports, trustee change reports, and property transaction applications are now filed through the Maharashtra Government's trust management portal at mahacharitytrust.maharashtra.gov.in. The portal requires the trust to log in using its Trust Registration Number, upload scanned documents, and pay any applicable late fees electronically. The portal also maintains the public register of trusts, which any member of the public can access to check a trust's registration status and submission history.

Prior Approvals Required Under the BPT Act

The Charity Commissioner is not merely a post-facto recipient of annual accounts — it is an active regulatory authority that must approve certain significant transactions involving trust property before they can be carried out. Conducting any of the following transactions without prior Charity Commissioner approval is a breach of the BPT Act and makes the transaction voidable at the instance of the Charity Commissioner:

Sale, Exchange, or Long-Term Lease of Trust Property

No public trust in Maharashtra can sell, exchange, gift, mortgage, or create a long-term lease (generally, leases beyond 3 years for immovable property) of any trust property without the prior written sanction of the Charity Commissioner. An application for such sanction must be filed with the Deputy Charity Commissioner, accompanied by a valuation report from an approved government valuer, the proposed terms of transaction, the resolution of the board of trustees approving the transaction, and a statement of why the proposed transaction is in the interest of the trust and its beneficiaries.

The Charity Commissioner evaluates whether the transaction is at fair market value, whether it is in the best interest of the trust and its beneficiaries, and whether the proceeds (in the case of a sale) will be properly applied for the trust's charitable objects. Without Charity Commissioner sanction, any sale of trust property is legally invalid and the buyer does not get good title. Banks and lawyers insist on seeing the Charity Commissioner sanction before processing any property transaction involving a public trust.

Investment of Trust Funds

Under Section 35 of the BPT Act, trust funds must be invested in modes approved by the Charity Commissioner. In practice, most government securities, nationalised bank fixed deposits, and RBI-approved investment modes are considered compliant. However, a trust that wishes to make investments in modes not typically approved — such as investment in private company shares or private bonds — may require Charity Commissioner approval. This investment compliance requirement under the BPT Act runs parallel to (but is distinct from) the Section 11(5) investment requirement under the Income Tax Act.

Application for Schemes

Where a trust's original objects have become impossible or impractical to carry out (cy-pres doctrine), or where the trust's administration has broken down due to trustee disputes or legal complications, the Charity Commissioner has the power to settle a Scheme for the administration of the trust under Section 50A of the BPT Act. A Scheme defines how the trust shall be administered going forward, who its trustees shall be, and how its property shall be managed. Scheme applications can be made by trustees, beneficiaries, or the Charity Commissioner itself.

Changes in Trust That Must Be Reported to the Charity Commissioner

Beyond the annual accounts submission, public trusts in Maharashtra must report certain changes to the Charity Commissioner through what are called Change Reports. These changes must be reported within the prescribed time, and non-reporting can result in the records of the trust being inconsistent with actual facts — which can cause significant problems in property transactions and legal proceedings.

Change of Trustees — Addition, Resignation, Death, or Removal

Every time a trustee is added, resigns, passes away, or is removed, a Change Report must be filed with the Charity Commissioner within 90 days of the change. The Change Report must include the reason for the change, the name and details of the outgoing trustee (if any) and the incoming trustee (if any), the board resolution authorising the change, and, where a new trustee is being added, the new trustee's consent to act. The Charity Commissioner updates the public register of trustees accordingly. If a trust has not reported trustee changes, its public register record is outdated — creating complications when the trust applies for Charity Commissioner sanction for property transactions.

Amendment of Trust Deed — Change in Objects or Governing Rules

Any amendment to the trust deed — whether changing the charitable objects, expanding the geographic scope, altering the number of trustees, or modifying the manner of trustee appointment — requires both a board resolution and, in many cases, prior sanction of the Charity Commissioner. Amendments that affect the fundamental objects of the trust or the management of trust property require formal Charity Commissioner approval before they take effect. Amendments made without Charity Commissioner knowledge may not be recognised when the trust later applies for property transaction sanction or scheme framing.

Change in Trust Name or Address

Where a trust changes its name (by deed amendment) or its registered office address, a Change Report must be filed with the Charity Commissioner. The trust's change of name or address must be reflected in the Charity Commissioner's register for all future correspondence and submissions to be correctly attributed to the trust.

Acquisition of New Immovable Property

When a trust acquires new immovable property — by purchase, donation, bequest, or in any other manner — the acquisition must be reported to the Charity Commissioner. The property is then entered in the trust's property register maintained by the Charity Commissioner. Unreported immovable properties create complications when the trust later attempts to sell or encumber such property, since the Charity Commissioner's records will not show the property as belonging to the trust.

Consequences of Non-Compliance With BPT Act and Charity Commissioner Requirements

Non-compliance with BPT Act requirements carries consequences that are distinct from and additional to income tax non-compliance. The following are the key consequences that trustees must understand:

Penalty Under Section 66 of the BPT Act

Section 66 of the BPT Act prescribes penalties for non-submission of accounts or documents to the Charity Commissioner. The penalty is imposed by the Charity Commissioner after providing an opportunity to be heard, and can be levied on the trust as well as on individual trustees personally. Where accounts are not filed for multiple years, compounding penalties can accumulate.

Personal Liability of Trustees

Trustees of a public trust in Maharashtra are personally liable for breach of trust under the BPT Act. Non-submission of annual accounts, unauthorised transactions with trust property, failure to report trustee changes, and failure to apply for scheme framing when required are all breaches of the BPT Act for which trustees can be held personally liable. The Charity Commissioner can apply to the civil court for recovery of trust property from a trustee who has misapplied it, and the court can order personal recovery from the trustee's own assets.

Removal of Trustees by Charity Commissioner

The Charity Commissioner has the power under Section 41D of the BPT Act to remove a trustee who has committed a breach of trust, is incapable of acting as trustee, neglects to submit accounts, refuses to hand over trust documents, or otherwise acts contrary to the interests of the trust. A removed trustee can appeal to the High Court, but the removal takes effect immediately unless stayed by the court.

Property Transactions Without Sanction Are Voidable

Any sale, exchange, mortgage, or long-term lease of trust property carried out without Charity Commissioner sanction is voidable at the instance of the Charity Commissioner. This means that a buyer who purchases trust property without confirming that Charity Commissioner sanction has been obtained does not get good title, and the transaction can be challenged by the Charity Commissioner in court. This consequence effectively renders non-sanctioned property transactions worthless — no bank will lend against unsanctioned trust property, and no buyer will pay full value for property with a cloud on its title.

How Charity Commissioner Compliance Relates to Income Tax Compliance

The Charity Commissioner compliance calendar and the income tax compliance calendar for a Maharashtra charitable trust run in parallel but serve different legal frameworks. Understanding the relationship between the two helps trustees plan effectively:

• September 30: Annual accounts (Schedule VIII) and auditor's report (Schedule IX) due with Charity Commissioner — BPT Act obligation
• October 31: Form 10B or Form 10BB audit report due on income tax portal, followed by ITR-7 income tax return — Income Tax Act obligation
• May 31: Form 10BD statement of donations due on income tax portal — Income Tax Act obligation
• December 31: FCRA Annual Return (FC-4) due with Ministry of Home Affairs — FCRA obligation (for FCRA-registered trusts)
• Throughout the year: TDS compliance (deduction, deposit, return filing) — Income Tax Act obligation

The annual audit of the trust's accounts covers both frameworks simultaneously. The same set of audited financial statements — balance sheet, income and expenditure account, receipts and payments account — forms the basis for both the Schedule VIII/IX submission to the Charity Commissioner and the Form 10B or Form 10BB audit report for income tax. The CA's audit scope covers both BPT Act compliance and income tax compliance in a single engagement — but the two reports (Schedule IX and Form 10B/10BB) are separate documents with different certifications, filed on different portals with different authorities.

Charity Commissioner Requirements in Other States

While the BPT Act applies in Maharashtra, other states have their own legislation and regulatory frameworks for public trusts. Trusts operating in multiple states, or trusts formed under the laws of a different state but operating in Maharashtra, should be aware of the relevant state law requirements:

Gujarat — Gujarat Public Trusts Act

Gujarat enacted its own Gujarat Public Trusts Act, with the Charity Commissioner of Gujarat as the regulatory authority. Trusts formed and operating in Gujarat must register with and submit annual accounts to the Gujarat Charity Commissioner. The forms and procedures are broadly similar to Maharashtra but have state-specific variations in the prescribed forms and due dates.

Karnataka, Tamil Nadu, and Andhra Pradesh — Endowments Boards

Religious trusts (temples, mutts, and similar Hindu religious institutions) in Karnataka, Tamil Nadu, and Andhra Pradesh/Telangana are regulated by state Endowments Boards (Hindu Religious and Charitable Endowments departments) rather than a Charity Commissioner. These have their own registration, accounts submission, and administration requirements distinct from the BPT Act framework. Charitable (non-religious) trusts in these states may be regulated under separate state laws or under the jurisdiction of the Charity Commissioner or Inspector General of Registration.

Societies Registered Under the Societies Registration Act, 1860

Many charitable organisations in India are registered as societies under the Societies Registration Act, 1860 (or the state-specific version, such as the Maharashtra Societies Registration Act). Societies have their own annual return filing requirements with the Registrar of Societies, separate from the Charity Commissioner. Depending on the nature of the society's activities and assets, it may also be required to register as a public trust under the BPT Act. N D Savla & Associates advises charitable organisations on which state law registrations apply to their structure.

How N D Savla & Associates Handles Charity Commissioner Compliance — Step by Step

1. Review Charity Commissioner Registration Status. We begin by confirming whether the trust is registered under the BPT Act, retrieving its Trust Registration Number, and verifying that the register record matches the trust's current constitution and trustees.
2. Identify All Pending Annual Submissions. Where the trust has pending Schedule VIII and Schedule IX submissions for past years, we identify the number of years pending, the accounts data required for each year, and the late fees applicable for each year of pending submission. For trusts with multiple years' accounts pending, we work systematically from the oldest pending year forward, regularising the submissions year by year.
3. Prepare Annual Accounts in BPT Act Prescribed Format. We prepare the balance sheet, income and expenditure account, and receipts and payments account, along with the statements of immovable property and investments, in the format the Charity Commissioner requires under Schedule VIII.
4. Complete the CA Audit and Prepare Schedule IX Report. We conduct the audit of the trust's accounts and prepare the Schedule IX auditor's report with the specific BPT Act observations and certifications the Charity Commissioner requires.
5. File Schedule VIII and IX on the Maharashtra Portal. We upload the audited accounts and the auditor's report to the Maharashtra trust portal, pay any applicable late fees, and obtain the acknowledgement of submission for the trust's records.
6. File Any Pending Change Reports. Where trustee changes, property acquisitions, or deed amendments have not been reported to the Charity Commissioner, we prepare and file the applicable Change Reports simultaneously with or after the annual accounts submission. Bringing the trust's records fully up to date with the Charity Commissioner covers all outstanding compliance obligations in a single engagement.
7. Establish Ongoing Annual Compliance. We put the trust on a fixed annual compliance calendar so that future Schedule VIII/IX submissions, change reports, and any sanction applications are handled well before their deadlines, keeping the trust permanently compliant.

Why Choose N D Savla & Associates for Charity Commissioner Submissions?

Charity Commissioner compliance for Maharashtra trusts requires knowledge of the BPT Act, familiarity with the Maharashtra trust portal, experience in preparing accounts in the Charity Commissioner's prescribed format, and the ability to handle regularisation of long-pending submissions with the Charity Commissioner's office. N D Savla & Associates brings all of this to every trust client.

Integrated Income Tax and Charity Commissioner Service

We provide a single, co-ordinated compliance service that covers both the income tax obligations (Form 10B/10BB, Form 10BD, ITR-7, TDS) and the Charity Commissioner obligations (Schedule VIII, Schedule IX, Change Reports, property sanction applications). Our Trust Audit Services engagement covers both frameworks simultaneously — one audit, two sets of reports, two compliance frameworks, all handled by the same team with full co-ordination between the income tax and BPT Act compliance calendars.

Expertise in Regularising Long-Pending Submissions

We have experience in regularising Charity Commissioner compliance for trusts that have pending submissions going back several years or even decades. We identify the pending years, reconstruct accounts where necessary, prepare Schedule VIII submissions for each pending year in chronological order, and handle the late fee computation and payment through the Maharashtra trust portal. Many trusts are surprised at how straightforward regularisation can be once the work is properly organised and managed.

Property Transaction Support — Sanction Applications and Conveyancing

Where a trust needs to sell, mortgage, or lease trust property, we prepare and file the Charity Commissioner sanction application, compile the required valuation reports and board resolutions, and liaise with the Charity Commissioner's office during the sanction process. We also advise on the documentation required by the purchaser's solicitor or banker to confirm that the trust property transaction is duly sanctioned.

Trustee Advisory and Governance

We advise trust management committees on BPT Act governance obligations — when trustee changes must be reported, how to properly structure a trustee appointment to comply with the trust deed and BPT Act, when Charity Commissioner approval is required for a proposed action, and how to maintain the trust's records in a manner that facilitates smooth Charity Commissioner compliance. Our Income Tax Audit engagement and Form 10BD filing services operate in parallel with our Charity Commissioner service for a fully integrated trust compliance partnership.

Frequently Asked Questions About Charity Commissioner Submissions