CBDT Permits Trusts & Institutions to Submit AY 2023-24 Audit Reports via Form 10B/10BB by March 31, 2024

Circular No. 2/2024, dated 05-03-2024

Rule 16CC and 17B of the Income-tax Rules, 1962 prescribes the form of audit report for trust or institution. It provided that the trusts or institutions approved under section 10(23C) were required to furnish report of audit of the accounts in Form 10BB, and the report of audit of the accounts of a trust or institution registered under section 12A shall be made in Form No. 10B.

With effect from Assessment Year 2023-24, these rules were amended. The amended rules provided that the report of the audit of the accounts of a trust or institution shall be furnished in Form No. 10B, if:

i) The total income of trust or institution exceeds rupees five crores during the previous year;

ii) Such trust or institution has received any foreign contribution during the previous year;

iii) Such trust or institution applied any part of its income outside India during the previous year.

In other cases, the report is required to be furnished in Form No. 10BB.

The new forms, Form No. 10B and Form No. 10BB, were notified via Notification No. 7 of 2023 dated February 21, 2023. The due date for furnishing such audit reports for the AY 2023-24 was October 31, 2023.

It was noticed in a number of cases that trusts or institutions have furnished audit reports in Form No. 10B, whereas Form No. 10BB was required to be furnished for the AY 2023-24. Similarly, in several cases, trusts/institutions have furnished audit reports in Form No. 10BB, whereas Form No. 10B was required to be furnished for the AY 2023-24.

Since non-furnishing of audit report in the prescribed form would result in denial of exemption in such cases as it is one of the conditions which is required to be satisfied for the claim of exemption, the Central Board of Direct (CBDT) has authorized trusts and institutions that have submitted audit reports by October 31, 2023, using Form No. 10B when Form No. 10BB was required, and vice versa, to file their audit reports for the assessment year 2023-24 by March 31, 2024, under clause (b) of the tenth proviso of section 10(23C) and section 12A(1)(b)(ii), using the appropriate Form No. 10B or 10BB.

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