Temple and Trust Accounts Format in India — Receipt & Payment, Income & Expenditure Explained

Every Indian temple, charitable trust and religious institution registered under Section 12AB must maintain proper accounts. When your CA asks for the accounts at year-end, do you know exactly what format they need?

This guide explains the three financial statements every temple and trust needs — and what goes into each one.

The three accounts every temple and trust must maintain

1. Receipt & Payment Account

This is a cash-basis summary of all money received and paid during the year. Think of it as a structured cash book.

Receipts side (left):

• Opening balance (cash + bank)
• Donations received (hundi, counter, UPI, cheque)
• 80G donations (separately)
• Grants received
• Interest on FDs
• Other income

Payments side (right):

• Salary and wages
• Puja samagri and prasad
• Festival expenses
• Maintenance and repairs
• Electricity and utilities
• Capital expenditure
• Closing balance (cash + bank)

Important: The Receipt & Payment Account does NOT distinguish between capital and revenue. It simply records all cash inflows and outflows.

2. Income & Expenditure Account

This is the accrual-basis equivalent of a Profit & Loss statement for trusts. It shows the surplus or deficit for the year.

Income side:

• Donations (excluding corpus donations)
• Interest earned
• Rent received
• Other receipts of recurring nature

Expenditure side:

• Administrative expenses
• Programme/activity expenses
• Depreciation on assets
• Any provisions

Key rule under Section 11: A trust must apply at least 85% of its income to its charitable objects in the same financial year. The remaining 15% can be accumulated. The Income & Expenditure Account is what your CA uses to verify this ratio.

3. Balance Sheet

Shows the financial position of the trust as on 31st March.

Liabilities side:

• Corpus fund
• General fund (accumulated surplus)
• Specific endowment funds
• Loans and payables

Assets side:

• Fixed assets (property, equipment)
• Investments
• Fixed deposits
• Cash and bank balances
• Receivables

What is the difference between corpus and income donations?

This is the single most common confusion for temple and trust committees.

| | Corpus Donation | Income Donation | |---|---|---| | Definition | Given permanently — principal cannot be spent | Regular donation for use in the year | | Tax treatment | Exempt under Section 11(1)(d) | Exempt if applied within the year | | Receipt requirement | Donor must specify "for corpus" in writing | No special specification needed | | Where it goes | Corpus Fund in Balance Sheet | Income & Expenditure Account |

Practical example: A devotee donates ₹5 lakh specifically to build a dharamshala and gives it in writing as a corpus donation. This goes to the Corpus Fund — you cannot use it for operating expenses.

What format do auditors use for temple accounts?

Most CAs use the format prescribed under Schedule VII of the Income Tax Rules for trusts filing ITR-7. The key points:

1. Accounts must be maintained in double-entry bookkeeping
2. Financial year is 1st April to 31st March
3. Audit is mandatory if gross receipts exceed ₹2.5 lakh in a year
4. The auditor must file Form 10B or Form 10BB along with the ITR
5. Form 10BD must be filed separately by 31st May for donations above ₹2,000

Common mistakes in temple and trust accounts

Mistake 1: Not separating corpus from income donations

Corpus donations mixed with regular income show artificially higher income — your 85% application requirement becomes harder to meet.

Mistake 2: Cash payments without vouchers

Every payment must have a voucher with payee name, amount, purpose, date and authorised signature. Without vouchers, your auditor will qualify the accounts.

Mistake 3: Missing 80G receipt numbers

Receipts must be sequentially numbered. A gap in receipt numbers raises red flags during scrutiny. Each receipt must record donor PAN for donations above ₹2,000.

Mistake 4: Not filing Form 10BD

From FY 2021-22, filing Form 10BD is mandatory. Failure results in a penalty of ₹200 per day under Section 234G. The deadline is 31st May each year.

Mistake 5: Mixing personal and trust bank accounts

A trust must have a separate bank account in the trust's name. Personal accounts of trustees cannot be used for trust transactions.

How Sanstha ERP helps with temple accounts

Maintaining all three accounts manually in Excel is time-consuming and error-prone. Sanstha ERP automates the process:

• Every donation automatically creates a receipt and is categorised as corpus or income
• Expense vouchers are created at the time of payment — no backfilling
• The Receipt & Payment Account is generated in one click at year-end
• Form 10BD is compiled automatically from receipt data
• Your CA receives clean, audit-ready data — no corrections needed

See how Sanstha ERP works →

Summary: Key compliance dates for temples and trusts

| Deadline | What to do | |---|---| | 31st May | File Form 10BD (list of donations above ₹2,000) | | 30th September | File ITR-7 with audited accounts (if audit required) | | 31st March | Close accounts for the financial year | | Within 30 days | Issue Form 10BE to donors after filing 10BD |

Keeping your temple's accounts in the correct format protects your 80G registration, keeps your trustees informed and makes every audit straightforward.

Start managing your temple accounts with Sanstha ERP — free trial