tax audit of trust claming exmption u/s 12a
This query is : Resolved
12 July 2010
if a trusts income is exmpt in income tax .but turnover of the said trust is crossed tax audit limit than what will happen i mean trusts tax audit liability is created or not.
Ca Aashish Upadhyay
(Expert)
12 July 2010
My Dear Suman
If the INCOME of the Trust is exempt u/s 10 than it has nothing to do with the turnover u/s 44AB. As in the case of Trust it is the application of Income which is the deciding factor for tax liability.
If the INCOME of the Trust is exempt u/s 10 than it has nothing to do with the turnover u/s 44AB. As in the case of Trust it is the application of Income which is the deciding factor for tax liability.
12 July 2010
if trusts income is exempt u/s 12A than whether tax audit under 44 AB is Applicable or not.
Ca Aashish Upadhyay
(Expert)
12 July 2010
Dear Suman!
Kindly refer CIT vs India Magnu Fun(2002) 81 ITD 295 Mum.
It says that if the Income is exempt u/s10 to 13A then audit u/s44AB is not applicable. If however the Income is chargable to tax than audit u/s44AB is applicable.
So please check the exemption staus of Trust once agin and enjoy the tax audit....fees by giving parties!
Kindly refer CIT vs India Magnu Fun(2002) 81 ITD 295 Mum.
It says that if the Income is exempt u/s10 to 13A then audit u/s44AB is not applicable. If however the Income is chargable to tax than audit u/s44AB is applicable.
So please check the exemption staus of Trust once agin and enjoy the tax audit....fees by giving parties!
CA. Pradeep Nayak
(Expert)
29 July 2010
Tax audit u/s 44AB is not applicable for trusts.
However, if the income of trust (before claiming deduction u/s 11 & 12) exceeds amount not chargeable to tax for the previous year (i.e Rs. 1.6 lac), the trust should get it accounts audited u/s 12A(1)(b) and audit report should be furnished in Form 10B.
However, if the income of trust (before claiming deduction u/s 11 & 12) exceeds amount not chargeable to tax for the previous year (i.e Rs. 1.6 lac), the trust should get it accounts audited u/s 12A(1)(b) and audit report should be furnished in Form 10B.
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