AUDIT REPORT U/S 10(23C)(iiiad)

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2009 DEAR EXPERTS

MY QUERY IS REGARDING SECTION 25 COMPANY RUNNING AN EDUCATIONAL INSTITUTION ON NO PROFIT NO LOSS BASIS (FOR CHARIATABLE PURPOSE) AND TURNOVER OF THE SAME IS LESS THAN 1 CRORE AS PRESCRIBED UNDER INCOME TAX ACT.

NOW MY QUESTION IS WHEN THE TAX AUDIT IS REQUIRED TO BE DONE AND WHAT IS THE FORM TO BE USED FOR 10 (23C)(iiiad).
SINCE FORM 10BB IS USED FOR THE EDUCTIONAL INSTITUTIONS UNDER CLAUSE iv, v , vi OF SECTION 10 (23C). BUT NO WHERE CLAUSE iiiad of section 10 (23c) is mentioned.

please reply.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 December 2009 Your institution falls under 10 (23C)(iiiad). Hence whole of income is exempt
if its gross receipts does not exceed Rs.1.00 crore.

The receipts is not regarded as turnover hence tax audit is not applicable.

Even you need not file any income-tax return; but keeping in view the good amount involved; you should get your accounts audited so that whenver any question is raised; the answer can be given instantly.

Generally; it is practice to use Form 10BB for such institutions also.

If you file return; then claim exemption under the above section.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2009 THANK U SO MUCH SIR FOR YOUR PRECIOUS ADVISE.