Arjuna (Fictional Character): Krishna, what is the recent notification brought by Income tax Department for the Books of Accounts to be maintained by the Trusts?
Krishna (Fictional Character): Arjuna, on 10th August 2022 Notification No. 94/2022 was issued notifying the New Rule 17AA for books of accounts and other documents to be kept and maintained by Trusts and other various Institutions.
Arjuna (Fictional Character): Krishna, to whom the new Rule 17 AA shall be applicable?
Krishna (Fictional Character):Arjuna, the Rule 17 AA shall be applicable to the every Fund or trust or any university or other educational institution or any hospital or other medical institution which are required to maintain books of accounts under Section 12A and Section 10(23C) of Income Tax Act.
Arjuna (Fictional Character): Krishna, what are the documents which are required to be kept and maintained under Rule 17AA?
Krishna (Fictional Character): Arjuna, the assessed is required to maintain following documents:
- Books of Accounts including Cash Book, Ledger, Journal, Copies of Bills (Serially Numbered), any other book that may be required to be maintained.
- Other documents for maintaining:
- Record of all the projects and institutions run by the person containing details of their name, address, and objectives.
- Record of Income of the person from Voluntary Contributions received, Income Received from property held under trust or record of Income received from sources other than mentioned above.
- Record of loans and borrowings taken and the detailed information of the application of money borrowed. For E.g. Name and address of the person to whom any credit or payment is made and the object for which such application is made.
- Record of properties held by the assessed, with respect to the following, namely, -
- Immovable properties and
- Movable properties including details of the nature and cost of acquisition of the asset.
- Any other documents containing any other relevant information.
Arjuna (Fictional Character): Krishna, what are the important points provided in the Notification issued by the Department?
Krishna (Fictional Character): Arjuna, the important points provided in the Notification are as follows:
- The books of accounts and other documents specified may be kept in written form or in electronic form or in digital form or as print-outs of data stored in electronic form or any other form of electromagnetic data storage device.
- The books of account and other documents specified shall be kept and maintained at its registered office.
- The books of account and other documents specified shall be kept and maintained for a period often years from the end of the relevant assessment year.
Arjuna (Fictional Character): Krishna, what should one learn from this?
Krishna (Fictional Character): Arjuna, from the above Notification the government is trying to bring strict watch on Trust and other Institution which are claiming deductions under Section 12A of the Income Tax Act. We have recently seen in the CAG report that performance audit carried out by CAG has noticed "certain deficiencies" and to minimize such deficiencies the Government is trying to bring preventive measures.
Tags income tax