Is audit of charitable trust compulsory?

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Hello,

Is audit of every Charitable Trust Compulsory? Or is there some exception in this regard?

Replies (5)

Please clarify your query

are you talking about tax audit or any other one.

Statutory Audit under Bombay Public Trusts Act 1950

refer link

https://wirc-icai.org/wirc_referencer/Other%20Law/Bombay%20public%20trust.htm

Trust having an annual income of Rs. 15000 or less is exempt from audit. Trust exempted from audit is required to file affidavit as to the extent of their income and also has to file accounts in Schedules IX-A and IX-B within 3 months of the completion of the accounting year.

Thanks! Instead of not auditing and filing those affidavits and other annexures, is there a chance we can also audit them and follow the routine procedure even though the income is NIL or negative?

As far as my practical experience is concerned, there are no harsh penalties for not filling affidavits and performing other formalities.

But being a prudent advisor I would advise you to go by the affidavit way only


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