What is the Statutory Audit of Trusts?
The audit of a trust is a yearly check of its accounts by an independent Chartered Accountant (CA). The auditor looks at the income, donations, expenses and assets of the trust and gives a report on whether the accounts are correct and whether the trust has followed the rules for its tax exemption.
A trust gets many benefits from the government, such as exemption from income tax and tax benefits for donors. In return, the law expects the trust to keep proper accounts, use its money for its stated purpose and have those accounts audited when the limits are crossed.
CA Arpit Gupta helps charitable and religious trusts, educational and medical institutions, societies and other non-profit bodies with audit, tax returns and compliance.
When is Trusts Statutory Audit Required Under the Income Tax Act?
A trust or institution that is registered for tax exemption must get its accounts audited if its total income, before claiming the exemption under Sections 11 and 12, is more than the basic exemption limit in the year. The basic exemption limit is the amount of income that is not taxable for a person, as set in the Finance Act.
Most active trusts cross this limit, so the audit is needed in most cases. Even if the audit is not required, the trust should still keep proper books and file its Income Tax Return.
What Documents Are Needed for a Trust Statutory Audit?
- Trust Deed or the registration certificate of the society
- PAN and TAN of the trust
- 12A or 12AB and 80G registration orders
- List of trustees with PAN and addresses
- Trial balance and ledgers
- Cash book and bank statements for the full year
- Donation receipts and the donor list
- Vouchers and bills of expenses
- Fixed asset register and purchase papers
- Investment details and FD receipts
- Loan statements, if any
- TDS returns and challans
- Salary registers and PF or ESI records
- Meeting minutes and trustees' resolutions
- Details of grants, including foreign donations
- Previous year's audited accounts, audit report, return and the forms filed
If your records are not complete, we can help you organise and correct them before the audit.
How Does Our Trust Statutory Audit Process Work?
- Call or WhatsApp us on +91-7081220600
- Tell us about your trust like type of work, income, registrations and the past filing status
- We check the audit need and the forms that apply
- We share the proposal and fee after checking our independence
- We send the document list and a timeline
- You share the books and records
- We audit the accounts and check the donations, spending, investments and compliance
- We discuss the findings and suggest corrections
- We prepare the audited accounts and the audit report in Form 10B or 10BB, with UDIN
- We file the audit report, Form 10 where needed, Form 10BD and the ITR-7
- We remind you of the next due dates and registration renewals
What Mistakes Should You Avoid?
- Thinking that a charitable trust does not need to file anything
- Filing the audit report after the due date
- Not applying the required part of the income for the objects of the trust
- Accumulating income without filing the right form
- Giving cash donation receipts that do not follow the rules
- Not maintaining the donor list and PAN details
- Making payments to trustees or their relatives without proper approval
- Investing funds in modes that are not allowed
- Not filing Form 10BD and not issuing Form 10BE
- Missing the renewal of 12A, 12AB or 80G
- Using one account for both the trust and the personal needs of trustees
Why Choose CA Arpit Gupta for Trust Statutory Audit?
- Practising Chartered Accountant
- Knowledge of trust and non-profit rules
- Complete Audit report, Form 10, Form 10BD, Form 10BE and ITR-7 from one place
- Registration support for 12A, 12AB and 80G applications and renewals
- FCRA and Section 8 help
- Honest feedback on risks and gaps in your records
- We explain every point clearly for the trustees
- Easy contact
Get Your Trust Audit Done on Time
Do not risk your tax exemption or donor trust. Share your trust details with CA Arpit Gupta, and we will complete your audit, returns and registrations.
Call or WhatsApp CA Arpit Gupta at: +91-7081220600.
