Audit report u/s 12a

This query is : Resolved

Share Report Follow Query Ask a Query

sunilkumar

sunilkumar (Querist)
Follow

04 January 2013 Sir,
What is the Relevent of 15% and 25% in case of Audit of Trust

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

06 January 2013 15% is used in reference to the part of the income derived from the trust property which can be accumulated or set apart. 85% of such income has to be applied for the purpose or objectives of the trust
.
Prior to 1-4-2003, up to 25% of income could be accumulated and 75% of the Income was required to be applied.
.
So you can say what was 25% prior to 1-4-2003 is 15% now.
.
As I think, this confusion has arisen while reading the old cases.

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