Audit of a trust.
David (article Assistant) (1639 Points)
29 April 2020
Whether it compulsory to conduct audit of a trust?
3 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 29 April 2020
Without giving the effects to the provisions of section 11 and section 12 of the Income Tax act 1961 , Exceeds Rs 250000/- Audit is required under section 12A(b) of the Income Tax act 1961 . Audit report form 10B .
please confirm with others also. Also check if any amendments in the finance act 2020 for F.Y 20-21 .
(Guest)
Yes. Audit is required subject to other conditions:
From the AY 2018-19 onwards, the return is to be filed in within due date under section 139(1). The due date for a trust without audit is 31st July of every year. In case, audit is to be conducted, due date is 30th September every year.
Changes in Budget 2018:-
The Honorable central Government of India has amended that
1. Section 40(a) (ia) with regard to deduction of Tax at Source on expenses as per Chapter XII-B. That means, the Trust has to deduct, pay and file ETDS returns.
2. Section 40A (3) which prohibits payment of cash more than Ten Thousand rupees for any expenses including expenses which are capital in nature.
3. Section 40A(3A) which deals with if any expenditure was allowed for deduction, then any payment in cash more than ten thousand rupees will attract the disallowance of such expenses in the year in which payment is made.
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