Audit of Trust
This query is : Resolved
10 July 2010
What is the turnover limit for the audit of trust? or audit of trust is compulsory?
11 July 2010
If income is exempt u/s 10 to 13A then audit u/s 44AB is not required - CIT vs India Magnum Fund (2002) but if income is chargeable to tax then audit u/s 44AB will be applicable if turnover > 40 lakhs or gross receipt > 10 lakhs in previous year.
Recent amendments: From AY 2008-09 “ advancement of any other object of general public utility” shall not be treated as charitable purpose if it involves the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to trade, commerce or business… Now section 44AB is applicable if person carrying business or and profession or person carrying under 44AD, 44AE, 44AF, 44BB, 44BBB.
Now as per recent amendment I believe the audit of charitable trust should not come under the purview of section 44AB.
Recent amendments: From AY 2008-09 “ advancement of any other object of general public utility” shall not be treated as charitable purpose if it involves the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to trade, commerce or business… Now section 44AB is applicable if person carrying business or and profession or person carrying under 44AD, 44AE, 44AF, 44BB, 44BBB.
Now as per recent amendment I believe the audit of charitable trust should not come under the purview of section 44AB.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
