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10(23C) and 12 aa

Others 1170 views 2 replies

javid nazir ganie

to be a CA

35 Points Posted on 26 November 2018

difference between 10(23C) and 12AA
INCOME IN 12AA
audit is compulsory when income exceeds max amount not chargable to tax before giving exemption u/s 11 and 12.
eg an asseesee running an institution providing computer education .he received fee of 5lakh and grant of 5lakh and expenses 700000 case 1
income 300000
is audit mandatory
case 2 expenses 800000
income 200000 .
is audit mandatory
is grant received to be treated as income or treatment as above
kindly eloborate and which itr to be fillied

Replies (2)

SBS

15 Points Posted on 27 November 2018

audit is compulsory when income exceeds max amount not chargable to tax before giving exemption u/s 11 and 12.

hence if you receive 5 lakh fees and Grant of 5 lakh audit is compulsory

in case 2 income is 2 lakh ( it's assumed balance 6 lakh expenditure is sourced by loan) then audit is not required if it has all individual members as trustees.

Grant received is to be treated as income since both revenue and capital expenditure is claimed as application

ITR 7 is to be filled