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.
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