When is Audit of trusts mandatory u/s 12A (b) ?
If Gross Income before any expense + Corpus is greater than Rs.2,00,000 ??
(or)
If Net Income + Corpus is more than Rs.200,000??
Thanx in advance
CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)
03 November 2013When is Audit of trusts mandatory u/s 12A (b) ?
If Gross Income before any expense + Corpus is greater than Rs.2,00,000 ??
(or)
If Net Income + Corpus is more than Rs.200,000??
Thanx in advance
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 15 November 2013
All Charitable Organisations having income exceeding the minimum exemption limit during the previous year are required to file their return of income. The ‘income’ for the purposes of filing the return should be computed without giving effect to the provisions of sections 11 and 12 of the Act. Such returns are to be filed with the Income-Tax Officer or the Assessing Officer under whose local jurisdiction they fall. The return is to be filed as per the provisions of section 139(4A) and (4C) in the manner provided in section 139 of the Act.
Here the word is Income so it is to be calculated gross Receipt less Expenses.
Income includes corpus donation.
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