India News | I-T Dept Gives Trusts, Institutions Time Till March 31 to File Audit Reports in Correct Form

New Delhi, Mar 5 (PTI) The income tax department on Tuesday allowed trusts and institutions, which filed audit reports for the assessment year 2023-24 in incorrect forms, to file documents in correct forms by March 31.

Income of any fund or institution or trust or any university or other educational institution or any hospital is exempt from income tax subject to fulfilment of certain conditions.

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One of the conditions required to be fulfilled by the trust or institution in order to be eligible to claim exemption, is, that it is required to get its accounts audited and furnish the audit report in the prescribed Form No. 10B / 10BB before the specified date.

In a circular, the Central Board of Direct Taxes (CBDT) said that in a number of cases trusts or institutions have furnished audit reports in Form No. 1OB, where Form No. 10BB was required to be furnished and vice versa for the A.Y. 2023-24.

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As per I-T rules, the report of audit of the accounts of a trust or institution, shall be furnished in Form No. lOB where the total income of trust or institution exceeds Rs 5 crores during the previous year or such trust or institution has received any foreign contribution during the previous year; or such trust or institution has applied any part of its income outside India during the previous year.

In all other cases, Form 10BB has to be filed.

The CBDT said that 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 claim of exemption.

"The Central Board of Direct Taxes hereby allows those trusts / institutions which have furnished audit report on or before 31 October 2023 in Form No. lOB where Form No. 10BB was applicable and vice-versa, to furnish the audit report in the applicable Form No. lOB / 10BB for the assessment year 2023-24, on or before 31st March 2024," it said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)