The Central Board of Direct Taxes (CBDT) on March 05, 2024, allowed certain trusts and institutions to furnish the audit report in the applicable Form No. 10B and 10BB on or before March 31, 2024.
Income of certain funds, institutions, trusts, universities, educational institutions, hospitals, and medical institutions mentioned in specific subclauses of section 10 (23C) of the Income-tax Act, 1961, is exempt from taxation under certain conditions outlined in various sections of the Act. One such condition for claiming exemption is that the trust or institution must have its accounts audited and furnish the audit report in the prescribed Form No. 10B / 10BB before the specified date.
The Central Board of Direct Taxes (CBDT) has observed instances where trusts/institutions submitted audit reports in Form No. 10B instead of Form No. 10BB, or vice versa, for the Assessment Year (A.Y.) 2023-24. Failure to furnish the audit report in the correct form may lead to denial of exemption, potentially resulting in tax demands.
To address this issue, the CBDT has permitted trusts/institutions that submitted audit reports in the incorrect form on or before October 31, 2023, to rectify the error. They are allowed to furnish the audit report in the correct Form No. 10B / 10BB for the A.Y. 2023-24 by March 31, 2024.
