Audit of trust

Noble thought Sir.

The following steps may be followed:

1.Decide the broad objectives of the Trust to be pursued.

Normally the objective should not be related to a specific caste,creed,religion,area,colour etc,.

2.Please get a copy of model Trust Deed to be followed.

While choosing so please keep in mind the model broadly suits your requirements.

3.Get the Trust deed drafted on a  Stamp paper of appropriate value depending on the Rules of the State where you are going to register the Trust.While drafting so please keep in mind the objectives are taken care,trustees are decided and management Trustees are identified etc,.

4.Decide on under what legislation you wish to register the trust like Sec 25 of Companies Act,Societies Registration Act  of the respective State where you wish to get it registered, Indian Trust act etc,.

Normally it is registered under Societies Registration Act of the respective State.

5.Get it registered with the Registrar of Societies of the State Govt of the jurisdiction where you want to get it registered.

6.Obtain Registration Certificate from the registrar .

7.Apply for PAN duly submitting the registered Trust Deed and other required info.

8.Apply to the Commissioner Of income Tax of the jurisdiction for Exemption under 80-G and 12-A of Income Tax Act  duly submitting the Registered Trust Deed,PAN Card,Undertaking from the Trustees to act as Trustees,Undertaking that they they would follow the Provisions of IT Act for Investment of Funds of the Trust etc , and obtain the Certificate from CIT under Sec 12-A and 80-G.

This is very broad procedure .Hope this gives an idea to the reader.

Since you already started the activities,you are required to file the audited accounts for the last few years along with the formats of Tax audit report.

kkm

agree wid Mr. Kolluru Krishna Murty

The core point in my question has been completely missed....What I asked is that is there anty limit as to income or something else so as to determine that whether audit of its accounts should happen or not!!!

I came to know that in case gross receipts in an year is more than Rs. 160000/- then only it has to get audited by a CA.

Thanks for your effort and helping nature...

Please confirm that whatever info as to the gross income limit which I got is correct or what!!!

The statutory threshold limit for exemption of audit of Trusts is the Exemption limit of individuals as per IT Act.

Accordingly upto Rs 1.80 lacs 0f Annual collections there is no requirement of audit of Trusts.

kkm

The provision talks about the gross collection of the Trust .i.e.the credit side of Income&Expenditure a/c of the Trust.

There is little  possibility of manipulating the numbers.

The limit amount is picked up from the threshold limit and not other provisions of the individual taxation.

kkm

I just registered a Trust For NGO purpose and need to apply for Pan Card for my Trust. The online form asks for the AO code/Ward.... I know that for individuals / co.s the ward / AO code shall be the place your office / Address is located. But For Trsusts is it the same? The confusion arises as the excel sheet i have downloaded from the same site has one particular AO code (ADIT/DDIT TRUST CIRCLE II) for the trusts as well. The office otherwise is in Prashant Vihar Vihar Delhi.

what is the limit for audit of Trust under Bombay trust act 1950