PRIVATE TRUST AUDIT COMPLIANCE

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HI 

I HAVE ONE CLINET WHO FORMED PRIVATE DISCRETIONARY TRUST , 

1.WHAT IS THE COMPLIANCE OF AUDIT IN CASE PRIVATE TRUST (FAMILY TRUST)

2.A TRUST CAN BE AN  AOP ?

3.WHAT IS THE THRESHOLD LIMIT FOR AUDIT OF PRIVATE TRUST.

4. UNDER WHICH ACT AUDIT IS APPLIABLE TO PRIVATE TRUST.

5. WHAT KINDS OF AUIDT IS APPLICABLE TO PRIVATE TRUST.

 

Replies (1)

A private discretionary trust must obtain a PAN, maintain rigorous books of accounts, and file tax returns (usually as an AOP or representative assessee). It is subject to a tax audit under Section 44AB of the Income Tax Act only if its business/professional receipts exceed the prescribed statutory thresholds. Always ensure the Trust Deed's specific provisions regarding audits and reporting are followed, as these override general requirements.

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