Applicability of audit to trust

Dear,

 

Anyone can please tell me whether the Audit and Audit report (Form 10) is mandatory is the income of the trust is below the basic taxable limits but the trust is having 12A exemption???

Replies (2)

Dear Sandeep,

Form 10 is not for audit report its for applying to AO for informing accumulation of income.

If total income before the exemptions u/s 11 and 12 of the trust exceeds the maximum amount not chargeable to tax;  in order to get exemption u/ss. 11 and 12, the accounts have to be audited by an accountant as defined in explanation below sub-section 2 of Section 288, who will give his report in Form 10B.

Hope it helps

Thank u Ankit..

I still have doubt that if the trust is not having the total income exceeding basic limits but it has registered for 12A Certificate, than also audit and audit report 10B is mandatory because of 12A ???

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