INFORMATION REGARDING TAX AUDIT

[DHARAM PAL]

The DTC Employees Superannuation Pension Trust constituted when Delhi Transport Corporation was under administrative control of Central Government of India for the purpose of disbursement of pension to DTC retired employees and fully exempted on all income from Income Tax Department under para B of IV schedule U/s 10(25)iii of Income Tax Act, 1961. 2. No Tax audit has been made by any CA Firm as the Trust is fullyexempted and there is no taxable income of the Trust. 3. The Audit of Balance Sheet/ Annual Accounts is being audited by CAG(Govt. Audit Party) every year after submission of Income Tax Return i.e. in December and January. Please advise the Audit is compulsory or not by any CA Firm
 

AI Summary

DTC Pension Trust Exempt from Tax Audit Due to No Taxable Income Under Section 10(25)(iii) of Income Tax Act. The DTC Employees Superannuation Pension Trust, established for pension disbursement to retired employees of the Delhi Transport Corporation, is exempt from income tax under Section 10(25)(iii) of the Income Tax Act, 1961. Consequently, no tax audit by a Chartered Accountant firm is necessary as the Trust has no taxable income. The Trust's balance sheet and annual accounts are audited annually by the Comptroller and Auditor General (CAG) after the submission of the Income Tax Return. The forum discussion concluded that a tax audit by a CA firm is not compulsory for the Trust.