CBDT allows certain trusts/Institutions to furnish the audit report in the applicable Form No. 10B/10BB on or before 31st March,2024
Attention to all trusts and institutions eligible for income tax exemption:
The Central Board Of Direct Taxes (CBDT) has recently issued Circular No. 2/2024 (F.No. 370142/6/2024-TPL) dated 05.03.2024, providing important updates regarding the submission of audit reports for the Assessment Year 2023-24.
In order to qualify for income tax exemption, trusts, institutions, universities, educational institutions, hospitals, and medical institutions, as defined in specified sub-clauses of section 10(23C) of the Income-tax Act 1961, or any trust or institution registered under section 12AA/12AB of the Act, must fulfill certain conditions outlined in various sections of the Act.
One crucial condition for eligibility is the submission of an audited report in the prescribed Form No. 10B or Form No. 10BB before the specified date. Failure to comply with this requirement may result in the denial of exemption, leading to potential tax demands.
The CBDT has observed instances where trusts and institutions submitted the wrong audit report form (Form No. 10B or 10BB) for the A.Y. 2023-24. To address this, the CBDT has granted an extension for corrective measures.
If your trust or institution has submitted Form No. 10B where Form No. 10BB was applicable, or vice versa, on or before October 31, 2023, you are now permitted to rectify this by submitting the correct audit report in the applicable Form No. 10B or 10BB for the A.Y. 2023-24 on or before March 31, 2024.
It is crucial to adhere to this update to ensure the continued eligibility for income tax exemption. The circular and further details are available on the official website of the Income Tax Department at www.incometaxindia.gov.in.
For any clarifications or assistance, please refer to CBDT Circular No. 2/2024 or consult with our tax advisor.