The CBDT has issued a directive dated 14th December 2018 requiring the registration process of charitable trusts / institutions to be audited by Internal Audit Party. A detailed ‘Procedure of Internal Audit of the Process of Registration of Charitable Trusts’ has also been prescribed by the CBDT.
Government of India
Ministry of Finance,
Department of Revenue,
Central Board of Direct Taxes,
Audit and Public Accounts Committee Division
F. No. 240/8/201— A & PAC — I I
Partial Modification of the Instruction No. 6 of 2017
It has been recommended by the Hon’ble Public Accounts Committee that the process of the Registration Process of Charitable Trusts / Institutions should be brought under the purview of internal audit. The Additional Director General (Audit & Inspection) in consultation with the Chief Commissioner of the Income Tax (Exemptions) has recommended a system in place for this purpose. Consequently, following para (numbered as 5.12) is being inserted immediately after para 5.11 of the Instruction No. 6 of 2017:
“5.12 The registration process of charitable trusts / institutions will be audited by Internal Audit Party as per ‘Procedure of Internal Audit of the Process of Registration of Charitable Trusts / Institutions of Commissioner of Income Tax (Exemptions)’ given in Annexure D.”
2. This issues with approval of the Chairman (CBDT).
Director A & PAC Division,