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Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2012 Can anyone please tell me that is there any requirement for schools to get their accounts audited or is it mandatory for them ?

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2012 Please reply Fast

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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23 July 2025 Regarding whether schools need to get their accounts audited:

### Key Points:

* **If the school is registered as a Trust, Society, or Section 8 Company:**

* **Yes, audit is generally mandatory** if they exceed certain income or turnover thresholds as per the Income Tax Act or relevant state laws.
* For example, under **Income Tax Act Section 44AB**, if the school/trust’s gross receipts exceed Rs. 1 crore (or Rs. 50 lakhs in some cases), a **tax audit** is mandatory.
* Many state societies acts or trust acts also require **statutory audits** annually.

* **If the school is a Private Ltd Company or Section 8 Company:**

* They have to comply with the **Companies Act**, which mandates audit of accounts regardless of turnover.

* **If the school is unregistered or a small proprietorship:**

* Audit may not be mandatory unless required by funding agencies or government grants.

### Summary:

* **In most cases, schools managed by trusts, societies, or companies have to get their accounts audited.**
* The audit ensures compliance with regulatory authorities and proper use of funds.
* Always check the specific legal form and applicable laws under which the school operates.

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If you tell me the type of entity your school is, I can provide a more precise answer. Would you like that?

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