Dear Sirs,
A charitable trust was formed in April 2023 and intends to apply for registration under section 12ab and section 80g simultaneously. Does it need to get its accounts audited before applying for these registration? Trusts income was above 2.5 but below 5 lakhs in both Financial years 2023-24 and 2024-25. The ITR for both financial years have been filed without any tax audit. kindly share your thoughts here.
Regards,
Manmohan
The requirement for audit arises only for the purpose of claiming exemption under sections 11 and 12, not at the registration application stage. While filing Form 10A (for 12AB/80G registration), the trust is typically required to upload copies of annual accounts (up to the last 3 years, if available), but immediate audit is not a mandatory prerequisite for getting registration. The Commissioner may request more documents if needed, but an application cannot be rejected solely on the ground of non-submission of audited accounts at the initial stage.
Thanks so much Dhiraj ji for the clarification. This really helped. Regards, Manmohan
You are welcome.
YOGESH KAPOOR AND ASSOCIATES
New Delhi
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