WHETHER AUDIT U/S 44AB APPLICABLE TO TRUST

[CHAMAN BANTHIA]

ASSESSEE IS AN EDUCATIONAL TRUST HAVING GROSS RECEIPT(SCHOOL FEES) EXCEEDING 1 CR. BUT NOT HAVING REGISTRATION U/S 12AA. THE TRUST HAS NOT GONE FOR OR APPLIED FOR 12A. THE AUDIT OF ACCOUNTS BY A CHARTERED ACCOUNTANT HAD BEEN CONDUCTED BUT HAS NOT UPLOADED THE FORM 3CB-3CD.

Q(1)- WHETHER TAX AUDIT U/S 44AB IS APPLICABLE TO AFORESAID TRUST?

Q(2)- WHAT IF AFORESAID AUDIT WAS CONDUCTED AFTER DUE DATE & FORM 3CB-CD NOT UPLOADED?

ALSO THERE WERE CONTRIBUTION FROM TRUSTEES TO THE EDUCATIONAL INSTITUTION(TRUST).

Q(2)- WHETHER CONTRIBUTION IS TO BE INCLUDED WHILE CALCULATING GROSS RECEIPTS?

Q(3)- WHETHER THE CONTRIBUTION CAN BE CONSIDERED AS CORPUS FUND?

Q(4)- IS CORPUS FUND(IN THIS CASE CONTRIBUTION)TAXABLE AS INCOME?

MY CONTENTION - AS AUDIT U/S 44AB IS APPLICABLE TO ASSESSEE HAVING INCOME FROM BUSINESS/PROFESSION. IN THE ABOVE CASE ASSESSEE IS RUNNING AN EDUCATIONAL TRUST SO WE CAN IGNORE TAX AUDIT.

CONTACT NO. 9680003049

AI Summary

Educational Trust Exceeds Receipts Limit, Tax Audit Under Section 44AB Not Applicable; File Forms 10, 9A, and 10B. An educational trust with gross receipts exceeding one crore, without registration under Section 12AA, inquired if a tax audit under Section 44AB is applicable. The trust conducted an audit but did not upload Form 3CB-3CD. Responses indicated that a tax audit is not applicable since the trust is not engaged in business. Contributions from trustees should be considered as corpus funds only if specified, and corpus funds are not taxable as income. It was advised to file forms 10 and 9A for accumulation and an audit report in form 10B.