A report by ex-CAG of India Vinod Rai, says there are glaring loopholes in the IT returns submitted by the Royal Family of Travancore. Sources close to the Family rubbish Rai's report, call it "one-sided''
The Travancore Royal Family was once again put in the dock by the former Comptroller and Auditor General (CAG) of India Vinod Rai. Rai, who has been assigned by the Supreme Court to audit the management of the Sree Padmanabhaswamy Temple Trust funds, stated in his report submitted to the apex court, that gross malpractices had been carried out by the royal family in their accounting and income tax returns.
"In the income tax returns for the financial year 2008-09 to 2013-14 filed by the Trust, Rs 22.75 lakh had been shown as capital expenditure for purchase of vessels for the temple and Rs 59.16 lakh towards addition/improvements to landed properties of the temple. But these additions actually stood included in the fixed assets of the Trust which would indicate that there was "misrepresentation" in the IT returns filed," Rai's report said.
In the report, of which dna has a copy, Rai has also revealed that the financial irregularities by the temple management including 769 missing pots (776 kg) of gold from the treasury of the temple,which is worth an estimated Rs 186 crore. He sought a detailed probe into the incident.
The report also estimated that the total income that was taxable from 2009-10 to 2014-15 was Rs 680.15 lakh but only Rs 98.05 lakh had been shown in the IT returns filed by the Temple Trust during that period.
Rai has recommended that no income tax exemption be given to the temple trust. He has also stated that the money given towards maintaining the temple and temple activities has been apittance and not in accordance with the tax laws of the country.
The Trust has been availing of tax exemption under the Income Tax Act for a long time now. ButRai pointed out in his report that the rental of kalyan mandapam (marriage halls) owned by the trust has resulted in revenue for which tax has not been paid. The renting out of these marriage halls is the main source of revenue for the temple trust.
"The accounts of the Trust for the year 2008-09 to 2012-13 produced before the authority did not include security deposits of Rs 42.37 lakh collected during those years from those who booked the kalyan mandapams, amount pending, refund, case, SB and FD accounts in which the amount refundable were retained. Keeping such amounts out of the accounts was a serious irregularity as there is a chance of misuse of amounts not accounted for," the report said.
The Trust also receives huge donations from devotees across the country but the report claims this money has been used for maintaining buildings other than the temple.
"As funds can be applied only for the purpose of the Temple, including of expenditure on repairs and maintenance of buildings not owned by the Trust is tantamount to clear violation for which the Trust is formed," the report said.
Reacting to the report, sources close to the royal family said, "The report has been prepared without consulting any of the family members. It is completely one sided as the material and information supplied was not considered."
Ex-CAG report: Taxable income to be paid by Temple Trust
Assessment year Taxable Income (Rs in lakh)
2009-10 93.45
2010-11 93.38
2011-12 107.27
2012-13 114.70
2013-14 141.97
2014-15 129.38
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Total 680.15 lakh
The report alleges that only Rs 98.05 lakh was shown as taxable income by the Temple Trust during this period
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