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Audit of trust registered u/s 12a & 80G

CA Darshan Soni (D.P.BARBHAYA & ASSOCIATES) (150 Points)

30 September 2019

trust is running school having school fees receipts about Rs. 90lacs and having profit around Rs. 20,000/- for F. Y. 2018-19. is trust required to get audit u/s 44ab?? or only have to audit u/s 12a(b)? or both?

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10 Replies

A B Kundu (Professional) (1422 Points)
Replied 30 September 2019

Audit is to be made for Charitable Trust registered U/s12AA for which Form 10B needs to be filed.

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Kapadia Pravin (17249 Points)
Replied 30 September 2019

I @ Darshan

If total income of the trust before giving effect to section 11 and section 12 exceeds the basic limit of 250000/- the audit of accounts is required under 12A(b)

Note that Audit may also be required under Trust registration body of the State

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sabyasachi mukherjee (26414 Points)
Replied 30 September 2019

Yes the trust needs to be audited under Charitable trust.
Moreover a trust has to give specific declarations under form 10 for expenses incurred and Grant's received.

Kapadia Pravin (17249 Points)
Replied 01 October 2019

Sabyasachi it's confusing -
You wrote trust needs to be audited under charitable trust. ???? means ??

Form 10 is out of context reply and also Form 10 is not for what you wrote.

sabyasachi mukherjee (26414 Points)
Replied 01 October 2019

@ kapadia
ok.
chill.
trust details:
regarding trust you have not mentioned
the list of exempted income.
you have not mentioned.
how much expenses are permitted to be incurred.
these particular issue have been discussed in this forum.
pls address these issues judiciously.
i have asked u where is the notification for an individual holding 2 pan numbers.
ideally they will not issue pan.
but there are exceptions.

Chill @ kapadia.
these are typographical errors.

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 01 October 2019

1. If the trust is covered u/s 11 and sec 12 then without giving effect to the above two-section if the total income of the trust exceeds the maximum amount which is not chargeable to tax then audit may be carried out by a Chartered Accountant.
2. The report of the above audit shall be submitted in Form 10B.
Please correct me if the above solution has an alternative view.

Kapadia Pravin (17249 Points)
Replied 01 October 2019

Sabyasachi why making ruckus ?

R S BALAJI (ADVOCATE) (49 Points)
Replied 14 November 2019

Total income u/s.11 or 12 means gross receipts of the trust or excess of income over expenditure ?

R S BALAJI (ADVOCATE) (49 Points)
Replied 14 November 2019

Total income u/s.11 or 12 means gross receipts of the trust or excess of income over expenditure ?

Kapadia Pravin (17249 Points)
Replied 14 November 2019

Total income means gross receipts as reduced by permissible expenses that is amount spent on objects of the trust and regular expenses incidental in running the Trust and it's administrative set up.

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