The Institute of Chartered Accountants of India (ICAI) has released an exposure draft of the “Guidance Note on Audit of Public Charitable Institutions u/s 12A of the Income Tax Act, 1961,” and it has requested feedback from its members and other stakeholders by the 25th of January, 2023 at the very latest.
Comments should be sent to email@example.com in the prescribed format, including information such as the Reference of Page No., Para No., and Existing Content of the Exposure Draft, as well as Suggested/ Revised Content, and Reasons for Change.
The scope of this ICAI guide is limited to auditing the institutions specified in Section 12A(1)(b)(ii) to ensure compliance with the provisions of IT Sections 11 to 13.
To be eligible for exemption under sections 11, 12, and 13, the entity must be registered under section 12AA. Section 10(23C) contains no provision that makes registration under Section 12AA a mandatory requirement. This ICAI Technical Guide is thus concerned with the exemptions provided under Sections 11 and 12 of the Income Tax Act of 1961.
ICAI Announcement dt. 10/01/2023: ICAI’s Exposure Draft of the “Guidance Note on Audit of Public Charitable Institutions u/s 12A of the Income Tax Act, 1961”
ICAI’s Technical Guide on Audit of Charitable Institutions u/s 12A (September 2022 Edition)
What is the primary distinction between the Technical Guides and the Guidance Notes that the ICAI publishes on a variety of subjects? ICAI had previously published “Technical Guide on Audit of Charitable Institutions u/s 12A” in September 2022, and now in January 2023, ICAI has published an exposure draft of “Guidance Note on Audit of Public Charitable Institutions u/s 12A.” If anyone can shed some light on the differences between these nomenclatures that are used by ICAI as well as the inconsistency or error in title thereof, I will be very grateful.