Urgent about charitable trust audit applicability
This query is : Resolved
03 December 2014
dear sir, whether audit of charitable trust will be applicable in following case:
Donation received without specific direction is around 300000 and revnue expenditure of trust is also around 300000 ie there is net defict.Now my question is whether audit will be applicable.Further according to provision when income exceeds taxable limit then audit is required.I am confused whether net income(Income- expenditure) will be considered or gross receipts.
Donation received without specific direction is around 300000 and revnue expenditure of trust is also around 300000 ie there is net defict.Now my question is whether audit will be applicable.Further according to provision when income exceeds taxable limit then audit is required.I am confused whether net income(Income- expenditure) will be considered or gross receipts.
03 December 2014
Audit is required when income(gross) exceeds taxable limit.
03 December 2014
sir we will consider donation receipt amount or after deducting expenditure.
03 December 2014
Consider donation receipt without deducting expenditure.
03 December 2014
can u please elaborate the provision..
03 December 2014
Sir can u please elaborate the provision..
03 December 2014
Section 12A(b) in The Income- Tax Act, 1995
(b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds 5 fifty] thousand rupees in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub- section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form. duly signed and verified by such accountant and setting forth such particulars as may be prescribed.]
(b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds 5 fifty] thousand rupees in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub- section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form. duly signed and verified by such accountant and setting forth such particulars as may be prescribed.]
03 December 2014
sir whether in this provision income definition will be considered as net income...
03 December 2014
Not net income it is gross income.
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