23 June 2011
Is tax audit applicable to a trust which is purely charitable in nature and its source of funds being Grants from State Government,Interest on Fixed deposts and voluntary donations from general public and specific contribution towards corpus by the Deparment of Police.
23 June 2011
The provisions of Section 44AB are applicable to the persons carrying on business or profession.
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In the given circumstances, the trust is not carrying on any business as such, thus, tax audit is not required.
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However, audit provisions are applicable for the registered charitable trust under certain circumstances where its income is taxable as provided U/s 12A(b) of the IT ACT.