A trust running a school, registered u/s 12AA, having turnover more than 1 CR is liable to tax audit? Income of the trust is not a business income. Though the definition of business is not exhaustive can the income be considered as business income and made liable to tax audit?
I also went through the guidance note on tax audit which specifically says, inter alia, if their turnover in business exceeds the prescribed limit.
My understanding is that a trust is liable for tax audit only if it is carrying on a 'business' other than of its objects.
04 December 2017
It will be liable to tax audit. If the trust is running school, running of school shall be considered as business and the definition of business also includes vocation as well
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