Somit Srivastava (IPCC) (129 Points)
09 January 2019Hi,
If Un-register trust (Un-register under 11 & 12A Sec. of IT Act 1961) received donation from Public in FY 2017-18 below 40lac. And after all expenses paid the net profit is below Rs 2,50,000/-.
So, in that case audit is compulsory or not please let us know as earliest.
Quick response is really appreciated. Thanks
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 09 January 2019
The consequences of non applicability of section 11 and 12, will be such that, the trust will be assesses as association of persons, the trust will not get any tax benefit even though it has applied more than 85% of its receipt. The Income is taxable at maximum marginal rate (MMR) or slab wise and since your income is below taxable limit then no filing compulsory but since receipt is below 8% then audit is compulsory.
Somit Srivastava
(IPCC)
(129 Points)
Replied 09 January 2019
Thanks for quick response.
If we want to file IT return can we file bethought get audited because net profit is below 2.5 lac? or is there any issue.
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 09 January 2019
Since profit is below 8% hence audit is compulsory.
Somit Srivastava
(IPCC)
(129 Points)
Replied 21 January 2019
Hi Mam,
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.
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 22 January 2019
Somit Srivastava
(IPCC)
(129 Points)
Replied 22 January 2019
Thanks for the response mam... Really appreciated
CAclubindia
