When 10b report is applicable to trust??

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2014 Dear Expert,

My friend is running an NGO, whose gross receipts for FY 13-14 was 9.80 lacs.

His trust is registered under 12A & 80G.

Whether it is required to get 10B Audit report?

what is the due date of filing the trust return in this case??

Thanks in advnace.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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04 August 2014 yes sir, this is condition of 12 A TO GET THE ACCOUNTS AUDITED . PLS REFER TO SEC 12 A (1) (b)
audit report to be furnished in form 10 b
last date is 30 sep and form is ITR -7

Rupesh Jain

Rupesh Jain (Expert)
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04 August 2014 yes you have to take audit in form 10B

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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04 August 2014 Gross receipts is not the criteria .Audit is required if the total income before claiming exemption u/s 11 and 12 exceeds Rs. 2,00,000 in financial year 2013-14 and audit report has to be obtained in form 10B.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2014 Thanks a lot for your replies..

Sir, I have seen many CA firms are issuing 10B report even if the total income is around say 1 Lakh .

In may case total donations received is Rs. 5,50,000/- and expenditure incurred towards object is Rs. 515000/-. Net Surplus is Rs. 35000/-.

If we calculate as per section 11& 12 than,

Donation received RS. 550000/-
Less: Standard deductions Rs. 82500/-
( 15%)
Net amount Rs.467500/-
Less:
Exps.incurred towards objectRS.Rs. 515000/-

Net taxable income(Loss) ( Rs. 47500/-)

Please comment

Thanks

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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12 August 2014 SIR, U R RIGHT, IF THE TOTAL INCOME OF TRUST, BEFORE GIVING EFFECT TO SEC 11 AND 12 IS BELOW THE MAX AMT NOT CHARGEABLE TO TAX , THEN AUDIT IS NOT NECESSARY U/S 12.
BUT , PLS KEEP IN MIND , THAT MEMORANDUM N ARTICLE OF ASSOCIATION OF NGO , WHEATHER REGISTERED AS TRUST OR SOCIETY MANDATES COMPULSORY AUDIT BY CHARTERED ACCOUNTANT

Harsewak singh

Harsewak singh (Expert)
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18 June 2016 CAN ANY BODY TELL ME ABOUT THE PENALTY IF ANY FOR LATE FILING OF FORM 10B.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 June 2016 Can't be penalized for belated filing of form 10B.

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CA. Aditya Goel

CA. Aditya Goel (Expert)
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26 June 2021 Gross Receipts (Voluntary Contribution) is 3 Lakhs (i.e. above 2.5 Lakhs)
Expenditure for Objects is 1 Lakh
Hence Total Income without considering section 11&12 is 2 Lakhs
is Audit Required in this case?
whether we will check the Gross Receipts of 3 lakhs or Net Surplus of 2 Lakhs for Audit Applicability ?