CBDT allows Trusts / Institutions to furnish Audit Report in Form 10B/10BB on or before 31st March 2024

Income from any fund, institution, or trust, any university or other educational institution, or any hospital or other medical institution referred to in specified sub-clauses of section 10 (23C) of the Income-tax Act, 1961 (the ‘Act’), or any trust or institution registered under section 12AA/12AB of the Act, is exempt, subject to the fulfillment of certain conditions specified in various sections of the Act.

One of the prerequisites for the trust or institution to be qualified to claim exemption is that it have its accounts audited and submit the audit report in the prescribed Form No. 10B / 10BB by the designated date.

The Central Board of Direct Taxes (CBDT) has discovered that in a number of cases, trusts and institutions provided audit reports in Form No. 10B, although Form No. 10BB was required for the financial year 2023-24. Similarly, in a number of cases, trusts or institutions provided audit reports in Form No. 10BB, but Form No. 10B was required for the financial year 2023-24.

It is noted that failure to provide an audit report in the prescribed form will result in the denial of exemption in such circumstances since it is one of the elements required for a claim of exemption. Denial of this exemption may result in the creation of a tax demand.

In view of the above, the CBDT has allowed those trusts/institutions which have furnished an audit report on or before 31st October 2023 in Form No. 10B where Form No. 10BB was applicable and vice-versa, to furnish the audit report in the applicable Form No. 10B / 10BB for the A.Y. 2023-24, on or before 31st March 2024.

CBDT Circular No. 2/2024 in F.No.370142/6/2024-TPL dated 05.03.2024 has been issued.

For Official Circular Download PDF Given Below: