Trust audit

The consequences of non applicability of section 11 and 12, will be such that, the trust will be assesses as association of persons, the trust will not get any tax benefit even though it has applied more than 85% of its receipt. The Income is taxable at maximum marginal rate (MMR) or slab wise and since your income is below taxable limit then no filing compulsory but since receipt is below 8% then audit is compulsory.

Thanks for quick response.

If we want to file IT return can we file bethought get audited because net profit is below 2.5 lac? or is there any issue.

Since profit is below 8% hence audit is compulsory.

Oh k mam, Thanks for the response

Hi Mam,

If Un-register trust (Un-register under 11 & 12A Sec. of IT Act 1961) received donation from Public in FY 2017-18 is Rs 30lac.

And after all expenses paid the net profit is Rs 2,43,000/- which is more than 8% of donation receipt in FY 2017-18 (30lac x 8% = 240000/-)

So, in that case audit is compulsory or not please let us know as earliest.

Thanks for the response mam... Really appreciated