REVISIT OF
CLAUSE 6 – LIABILITY TO TAX AUDIT – SPECIAL CASES OF ICAI GUIDANCE NOTE ON TAX AUDIT U/S 44 AB OF ITACT, 1961 (2005 EDITION)
Where in the Guidance Note, Clause 6 provides that
" A trust/association/institution carrying on business may enjoy exemptions as the case may be under sections 10(21), 10(23A),10(23B) or section 10(23BB) or section 10(23C) or section 11. A cooperative society carrying on business may enjoy deduction under section 80P. Such institutions/associations of persons will have to get their accounts audited and to furnish such audit report for purposes of section 44AB if their turnover in business exceeds Rs.40 lakhs."
This may not be correct( required to be revisited) in the case of Trusts and institutions carrying on business, but enjoying exemption u/s 10&11 since computation part only need to be done as per the provisions of Chapter IVD and the assessing officer has got the power to determine such income even without requiring the accounts to be audited u/s 44AB. [Se 11(4) & 11(4A)].The same is not specifically provided also.
It seems the mention about Co-op. Society is also out of place since sec.80P is only a deduction from total income.
Taxpayers Information Series – 37 (Assessment of Charitable Trusts and Institutions) issued by the Directorate of Income Tax (RSP & PR) issued on 05.12.2002, nowhere mention about such audit u/s 44AB. even though it was informative only.
Regards,
K. Suresh Kumar Varma
Trivandrum
CLAUSE 6 – LIABILITY TO TAX AUDIT – SPECIAL CASES OF ICAI GUIDANCE NOTE ON TAX AUDIT U/S 44 AB OF ITACT, 1961 (2005 EDITION)
Where in the Guidance Note, Clause 6 provides that
" A trust/association/institution carrying on business may enjoy exemptions as the case may be under sections 10(21), 10(23A),10(23B) or section 10(23BB) or section 10(23C) or section 11. A cooperative society carrying on business may enjoy deduction under section 80P. Such institutions/associations of persons will have to get their accounts audited and to furnish such audit report for purposes of section 44AB if their turnover in business exceeds Rs.40 lakhs."
This may not be correct( required to be revisited) in the case of Trusts and institutions carrying on business, but enjoying exemption u/s 10&11 since computation part only need to be done as per the provisions of Chapter IVD and the assessing officer has got the power to determine such income even without requiring the accounts to be audited u/s 44AB. [Se 11(4) & 11(4A)].The same is not specifically provided also.
It seems the mention about Co-op. Society is also out of place since sec.80P is only a deduction from total income.
Taxpayers Information Series – 37 (Assessment of Charitable Trusts and Institutions) issued by the Directorate of Income Tax (RSP & PR) issued on 05.12.2002, nowhere mention about such audit u/s 44AB. even though it was informative only.
Regards,
K. Suresh Kumar Varma
Trivandrum
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