TRUST IS REQUIRED TO GET THE BOOKS OF ACCOUNTS AUDITED IF RECEIPTS EXCEEDS RS. 50,000/-
One of the conditions for availing exemption is that accounts of the trust should be audited if its income (without giving effect to provisions of sections 11 & 12) exceeds exemption limit. Where total income before the exemptions u/ss. 11 and 12 of the trust exceeds the maximum amount not chargeable to tax, in order to get exemption u/ss. 11 and 12, the accounts have to be audited by accountant as mentioned in section 2 of Section 288, who will give his report in Form 10B. stration u/s 12A.
Section 12A(b) in The Income- Tax Act, 1961 reads as under:
12A
(b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds 5 fifty] thousand rupees in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub- section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form. duly signed and verified by such accountant and setting forth such particulars as may be prescribed.]
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