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Tax audit

krut (Article Assistant) (24 Points)

09 January 2012

Any TRUST with educational motive if earns more then 60,00,000 /- then, is it mendatory for such entity to get " TAX AUDIT" done ??

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Deepak Gupta (CA Student) (15922 Points)
Replied 09 January 2012

Originally posted by : krut
	Any TRUST with educational motive if earns more then 60,00,000 /- then, is it mendatory for such entity to get " TAX AUDIT" done ??

Liability to tax audit - Special cases

(Para 6.1 of ICAI Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961)

A trust/association/institution carrying on business may enjoy exemptions as the case may be under sections 10(21), 10(23A), 10(23B) or section 10(23BB) or section 10(23C) or section 11. A cooperative society carrying on business may enjoy deduction under section 80P. Such institutions/associations of persons will have to get their accounts audited and to furnish such audit report for purposes of section 44AB if their turnover in business exceeds Rs.60 lakhs.

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maxine (worker) (22 Points)
Replied 10 January 2012

Taxes are important for it serves as the blood of the government. Without it, the government will not function well for lacking of budget. But it seems as though that taxes become a burden to everyone. Irregularities in tax returns will almost always trigger an audit. For individuals that make under $200,000 a year, however, that audit is not very likely. Article source: IRS is upping audits on returns over $200,000

maxine (worker) (22 Points)
Replied 10 January 2012

And may I add the yearly Internal Revenue Service audit report is produced annually as a way to study who is audited and just how those individuals are chosen.