What is the limit for audit of charitable trust?
Charitable trusts play an essential role in society by providing support to the less privileged individuals and communities. However, like any other organization, these trusts have to comply with various laws and regulations. One such requirement is the audit of the trust's financial statements.
An audit is an independent examination of the trust's financial records to ensure compliance with accounting standards and laws. The law mandates charitable trusts to conduct an audit of their accounts and records regularly. However, the frequency of the Best audit report in Delhi depends on the trust's annual income and receipt of funds.
According to the Income Tax Act, 1961, a charitable trust is required to get its accounts audited if its total income exceeds Rs. 2.5 lakhs in a financial year. The audit must be conducted by a qualified chartered accountant, who is registered with the Institute of Chartered Accountants of India (ICAI).
In addition to the mandatory audit requirement, a charitable trust may have to undergo a special audit in certain circumstances. For instance, if the trust receives foreign contributions exceeding Rs. 10 lakhs in a financial year, it must undergo a special audit conducted by a chartered accountant who is also a certified public accountant.
It is important for charitable trusts to ensure that their financial records are accurate, transparent, and compliant with all relevant laws and regulations. A well-conducted audit can provide assurance that the trust's funds are being used for their intended purposes and help build trust with donors and stakeholders.
At NGO Partner, we understand the importance of compliance for charitable trusts. We provide a range of legal services, including audit and accounting services, to ensure that our clients meet all legal requirements. Our team of experts has years of experience working with charitable trusts and can provide comprehensive support for all compliance needs.
If you are looking for legal assistance for your charitable trust, including audit and accounting services, don't hesitate to contact NGO Partner. We are committed to helping our clients succeed while remaining compliant with all relevant laws and regulations.
