Trust Audit

Applicability:
  • Charitable and Religious Trusts registered under section 12 of Income Tax Act, 1961 and enjoying exemption under section 11 are liable to audit
  • Companies registered in India under Section 25 of the erstwhile Companies Act 1956 and section 8 of the Companies Act 2013

Purpose: The main purpose of this audit is to check propriety of utilization of funds towards approved activities and whether in accordance with rules specified in this regard. Also includes checking whether exemptions enjoyed by the trust are in line with Income Tax.