Two Audit Forms
1) Form 10B - Trust who has Income > 5 crore or received any foreign contribution or applied any part of its income outside India
2) Form No. 10BB - in other cases, above condition are not applicable
Form 10B has 49 Sections with many Questions
1- 6 Q on Basic Details
7- 8 Q on Legal
9- 9 Q on Registration Details
10-10 Q on Registration Details
11-12 Q on Objects
13-13 Q on Commencement of activities
14-14 Q on Details of Place where books of accounts
15-16 Q on Advancement of General Public Utility
17-17 Q on Business Undertaking
18-18 Q on Business Incidental to objects
19-19 Q on TDS on receipts
20- 27 Q on Voluntary contributions
28-30 Q on Income to be applied
31-32 Q on Application of Income
33-35 Q on Section 115BBI
36- 36 Q on Capital Asset
37-38 Q on Application of income out of different sources
39-39 Q on 13(10) and 22nd proviso to section 10(23C)
40-40 Q on Exp on Religious Purposes
41-42 Q on Person referred to in 13(3)
43-49 Q on Specified Violation
Each Audit Q has 1 to 15 sub-questions
Overall Approx 200 Questions need to be answered for Form 10B
Add to it 10/15 detailed Schedules
From 10B has approx 100 Q + 5/10 Scheules
Some Impractical Qs
Income of auditee has been applied, other than for the objects of the trust or institution?
Auditee has applied any income for benefit of any particular religious community or caste?
Whether auditee has not complied with the requirement of any other law?
New Audit Forms:
Trust Audit was mostly done Voluntarily for free by many CAs. This would definitely stop now as Tax Dep need a detailed Audit report
Small Trusts & NGOs shall find it difficult as cost of compliance will increase
However, the misuse of a trust shall reduce
Regard CA Chirag chauhan
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