Tax Audit

This query is : Resolved

leena s kothari (Querist)
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28 July 2010 the assessee is an educational institute having educational fees received above 40 lacs. will tax audit be applicable.
assessee is having no other income. a trust is running the educational institute

srinath

srinath (Expert)
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28 July 2010 basically this would be exempt from tax u/s 11 if the trust gets registered for income tax benefit

otherwise it would be liable for tax audit

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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28 July 2010 Fact of the case

Trust income more than 40 lakh

Provisions in Income tax

If a trust created for Charitable or religious purpose and eligible for exemption U/S 10(11), then no tax, no audit requirement u/s 44 AB...

Conclusion
Taxaility depends upon the purpose of the trust

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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28 July 2010 Tax audit u/s 44AB is not applicable for trusts.

However, if the income of trust (before claiming deduction u/s 11 & 12) exceeds amount not chargeable to tax for the previous year (i.e Rs. 1.6 lac), the trust should get it accounts audited u/s 12A(1)(b) and audit report should be furnished in Form 10B.