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Trust audit

295 views 3 replies

Somit Srivastava

IPCC

129 Points Joined July 2012

Hi All,

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.

Quick response is really appreciated.

Thanks

Replies (3)

Guest

Unregistered trust is taxed as an AOP. If the shares of the members are determinant & all members have below taxable incomes then tax at slab rate is applicable Otherwise, maximum marginal rate tax will be payable. ITR 5 will be used for filing return. Audit is not mandatory.

However if you are planning for registration u/s 12AA, you can get the accounts audited voluntarily.