Time limit for audit of a charitable trust

All Charitable Organisations having income exceeding the minimum exemption limit during the previous year are required to file their return of income. The ‘income’ for the purposes of filing the return should be computed without giving effect to the provisions of sections 11 and 12 of the Act. Such returns are to be filed with the Income-Tax Officer or the Assessing Officer under whose local jurisdiction they fall. The return is to be filed as per the provisions of section 139(4A) and (4C) in the manner provided in section 139 of the Act.

Charitable trusts in India are set up for social causes. To get tax exemption these
registered charitable trusts are required get their trust registered with income tax
department and follow tax regulations as prescribed in India.

As per Income Tax Act, 1961, charitable trusts in India are required to 㕳le income tax
return before the due date as prescribed in the Act. Today, we will be discussing when
a charitable trust is required to 㕳le income tax return and before which date
charitable trusts are required to 㕳le income tax report i.e. due date of 㕳ling income tax
return.

As per section 139(4C) of income tax act, a charitable trust is required to 㕳le income
tax return if total income before allowing exemption under section 11 and 12 exceeds
the basic exemption limit that is chargeable to tax in India for the relevant 㕳nancial
year for which the charitable trust is 㕳ling income tax return.

For assessment year 2014-2015 i.e. 㕳nancial year 2013-2014, basic exemption limit is
Rs. 250000. Without giving e團겪ect to exemptions available under section 11 and 12 of
income tax act, if income of charitable trust exceeds 250000 rupees then the
charitable trust is required to 㕳le their income tax return.

As per income tax Act, where assessee is a person other than company and accounts
are required to be audited under any law then income tax return has to be 㕳led on or
before 30 September of the relevant assessment year. As charitable trusts are
required to get their accounts audited, its income tax return 㕳ling due date is 30
September of the relevant assessment year.

This means for assessment year 2015-2016 i.e. 㕳nancial year 2014-2015, income tax
return 㕳ling due date is 30 September 2015. Similarly for next 㕳nancial year 2015-
2016 or assessment year 2016-2017, due date of 㕳ling income tax return for charitable
trust will be 30 September 2016.

Charitable trusts are required to 㕳le income tax return before the due date is form
ITR7 in paper format.

Charitable trust which fails to furnish its income tax return within the due date of 㕳ling
can still submit it’s IT return any time before the expiry of 1 year from the end of the
relevant assessment year or before the completion of the assessment year which ever
is earlier.

For instance, a charitable trust is required to 㕳le its income tax return for assessment
year 2015-2016 on or before 30 September 2015. If this due date is missed then
income tax return can still be 㕳led on or before 31 march of 2017 i.e. 1 year from the
end of assessment year 2015-2016.

Thanks for the response, here i want to confirm that can i as an auditor audit the books of accounts after 30th September which was the due date, lets say for example 31st January, so can i audit the books for FY 14-15 on 31st January 2016.

I didnt get the Example Excatly ?

can u explain in detail ?

Sure.

The due date for filing the income tax return and for audit for FY 14-15 was 30th September which was later extended to 31st October 2015.

Now i am asking is that can i do the audit of books of accounts of the said trust after 31st October 2015, lets say for example as on date , so can i sign the balance sheet of the trust as on today's date for FY 14-15?

u can do but u cant get benefit of few things like loss carried forward,etc

Can we get exemption of sec 11 and 12 for audit after due date?

help will be much appreciated