Applicability of Audit of Trust

Save Share

This query is : Resolved

AJAY GUPTA (Querist)

01 June 2016 A charitable trust registered under 12 A recd corpus donation of Rs 300000/- and interest income Rs 34000/- filed ITR-7 without accounts being audited. Now a notice for defective return 139(9) is recd under error code 57 stating income exceed 2 lac and audit is compulsory. Pls suggest what to do and whether audit required or not.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 June 2016 Yes audit is required rectify the defect by filing audit report.

AJAY GUPTA

AJAY GUPTA (Querist)

01 June 2016 Thanks sir

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

07 June 2016 As per section 12A it is mandatory to get the accounts audited. As per section 139(4A) it is mandatory to file the return of the income if the gross income Exceeds maximum amount which is not chargable to tax(without) giving effect of Sec-11 & Sec-12. In the above case as the total receipts exceeds two lakhs than you have to get the accounts audited and filed with ITR.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now