INFORMATION REGARDING TAX AUDIT

[Guest]

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
 

[DR.MARIAPPAN GOVINDARAJAN]

Since there is no taxable income of the trust and also exempted from Section 10(25)(iii) of the Act, in my view, no tax audit is required.

AI Summary

Tax audit requirement for exempt trusts: exemption and absence of taxable income negate statutory tax audit obligation. A pension trust fully exempt under the applicable income tax exemption and reporting no taxable income is not subject to a statutory tax audit under the Income Tax Act; the trust's annual accounts are nonetheless reviewed annually by a government auditor after return filing.