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The Central Board of Direct Taxes permits certain trusts and institutions to furnish audit reports in the correct applicable form for the assessment year 2023-24 by 31st March 2024. This action applies to trusts and institutions that mistakenly furnished Form No. 10B instead of Form No. 10BB, or Form No. 10BB instead of Form No. 10B, on or before 31st October 2023. The Central Board of Direct Taxes exercises powers under section 119 of the Income-tax Act 1961 to grant this relief.
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F. No.370142/6/2024-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division)
Sub: Order under section 119 of the Income-tax Act, 1961 - reg. Circular No. 2/2024 Dated 05th March, 2024
Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub- clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 (hereinafter referred to as trust or institution under the first regime) of the Income-tax Act, 1961 (hereinafter referred to as the Act) or any trust or institution registered under section 12AA or section 12AB of the Act (hereinafter referred to as trust or institution under the second regime) is exempt subject to fulfilment of certain conditions specified under various sections of the Act.
2.1 A similar condition is in place for trust or institution under the second regime in sub- clause (ii) of clause (b) of sub-section (1) of section 12A of the Act.
The new forms, Form No. 10B / Form No. 10BB, were notified vide Notification No. 7 of 2023 dated 21st February, 2023. The above prescription was put in place w.e.f. 01.04.2023, vide the Income-tax (Third Amendment) Rules, 2023, and is therefore, effective for assessment year 2023-24 and subsequent assessment years. The due date for furnishing such audit reports for the A.Y. 2023-24 was 31st October, 2023.
Prior to the aforesaid amendment of the Rules, the earlier prescribed form for audit report was Form No. 10BB for trust / institution in the first regime and Form No. 10B for trust / institution in the second regime.
Thus, A.Y. 2023-24 is the first year when changes described in paragraphs 3 and 4 take effect.
It has come to the attention of the Board that in a number of cases trusts / institutions have furnished audit report in Form No. 10B, where Form No. 10BB was required to be furnished for the A.Y. 2023-24. Similarly, in a number of cases trusts / institutions have furnished audit report in Form No. 10BB, where Form No. 10B was required to be furnished for the A.Y. 2023-24. As noted above, 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.
In view of the above, the Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby allows those trusts / institutions which have furnished 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 under clause (b) of the tenth proviso to clause (23C) of section 10 and sub-clause (ii) of clause (b) of sub-section (1) of section 12A of the Income-tax Act, 1961, in the applicable Form No. 10B / 10BB for the assessment year 2023-24, on or before 31st March, 2024.
(Sourabh Jain) Under Secretary (TPL) - I, CBDT
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