Audit Under Trust Act a transparent audit your trust and its donors can trust.
Trust audit services in Mumbai and across India — audit of the accounts of public charitable and religious trusts under the applicable Public Trusts Act and the Income Tax Act, with complete audit reporting, application-of-income review, and audited accounts for the Charity Commissioner.
An audit of a trust is the independent examination of the accounts of a public charitable or religious trust to confirm that its funds have been received, applied, and accounted for properly. For trusts, the audit carries a special significance — it provides assurance to donors, beneficiaries, regulators, and the public that the trust’s resources are being used for its charitable objects and not diverted.
A trust audit can arise under more than one law. Public charitable trusts are generally required to have their accounts audited under the applicable state Public Trusts Act, with the audited accounts submitted to the Charity Commissioner. In addition, where a trust is registered for income tax exemption, the Income Tax Act requires the trust’s accounts to be audited and the audit report furnished in the prescribed form when its income crosses the threshold for exemption.
Our trust audit practice handles the audit of public charitable and religious trusts under both the Public Trusts Act and the Income Tax Act. We examine the trust’s receipts and payments, verify that income has been applied towards charitable objects, check compliance with the trust deed and the conditions of tax exemption, prepare the audit report, and finalise the audited accounts for submission to the Charity Commissioner and the income tax department. Our aim is an audit that upholds the trust’s transparency and protects its registrations.
Our Trust Audit Services
Public Trust Audit
Audit of public charitable and religious trusts under the applicable Public Trusts Act.
Income Tax Trust Audit
Audit of trusts registered for income tax exemption, with the prescribed audit report.
Application of Income Review
Verification that the trust’s income has been applied towards its charitable objects.
Trust Deed Compliance
Review of compliance with the objects and conditions set out in the trust deed.
Receipts & Payments Audit
Examination of the trust’s receipts, payments, and corpus and earmarked funds.
Audit Report Preparation
Preparation of the audit report and balance sheet for the trust.
Charity Commissioner Accounts
Finalisation of audited accounts for submission to the Charity Commissioner.
Exemption Condition Check
Review of compliance with the conditions for continued income tax exemption.
Our Trust Audit Workflow
Audit Planning
Understanding the trust, its objects, registrations, and applicable audit requirements.
Books & Records Review
Examination of receipts, payments, books of accounts, and supporting records.
Application & Compliance Check
Verification of application of income and compliance with the trust deed and tax conditions.
Audit Report Preparation
Preparation of the audit report, balance sheet, and income and expenditure account.
Finalisation & Submission
Finalisation of audited accounts for the Charity Commissioner and income tax department.
Benefits of a Proper Trust Audit
Frequently Asked Questions
A public charitable or religious trust is generally required to have its accounts audited under the applicable state Public Trusts Act, and separately under the Income Tax Act where it is registered for tax exemption and its income crosses the prescribed threshold. The audit confirms that the trust’s funds are properly applied.
A trust audit can arise under the applicable state Public Trusts Act, which requires audited accounts to be submitted to the Charity Commissioner, and under the Income Tax Act, which requires an audit report in the prescribed form for trusts claiming income tax exemption.
The audit of a trust is carried out by a practising Chartered Accountant. The auditor examines the trust’s accounts, verifies the application of income, and reports in the form prescribed under the applicable Public Trusts Act and the Income Tax Act.
For a trust claiming income tax exemption, a specified portion of its income must be applied towards its charitable or religious objects. The trust audit verifies this application of income, as a shortfall can affect the trust’s exemption and tax position.
Failure to get the trust’s accounts audited and to submit the audit report can lead to non-compliance under the Public Trusts Act and can jeopardise the trust’s income tax exemption, exposing the trust to tax and penalties.
Get Your Trust Audit Done
Talk to our team for a transparent, compliant audit of your charitable or religious trust under the Public Trusts Act and the Income Tax Act.
Get Trust Audit Support or call +91 9819 000 511