The Income Tax e-filing portal has allowed the service to file Form 10 for taxpayers. Clause (a) of Explanation 3 to the third proviso to clause (23C) of section 10 or clause (a) of sub-section (2) of section 11 are the clauses of the Income Tax Act, 1961 under which Form No. 10 is a statement to be granted to the Assessing Officer/Prescribed Authority.
It has been informed on the portal that with the availability of Form 10, you can file vide Notification No. 96/2022 dated 17th August 2022.
On 17th August 2022, a notification was published by the Central Board of Direct Taxes. According to the notification, the option to be carried out as per the proviso of the Explanation to sub-section (1) of section 11 of the Act concerning the income of any last year applicable to the assessment year starting on or after the 1st day of April 2016 shall be in Form No. 9A. And also it shall be applied before the allotted time/deadline as per the sub-section (1) of section 139 of the Act in order to furnish the income tax return of the applicable assessment year.
The declaration to be furnished to the Assessing Officer of the concerned authority under these clauses- clause (a) of Explanation 3 to the third proviso to clause (23C) of section 10 of the Act or clause (a) of sub-section (2) of section 11 of the Act or the said provision as relevant as per clause (21) of section 10 of the Act shall be in Form No. 10 and shall be furnished before the expiry of the time provided as per sub-section (1) of section 139 of the Act, in order to furnish the return of income. (3) The option in Form No. 9A mentioned in sub-rule (1) and the declaration in Form No. 10 mentioned in sub-rule (2) shall be furnished digitally either with a digital signature or electronic verification code.
Trusts and institutions registered under Sections 12AB and 10(23C) are also subject to the requirement to spend at least 8.5 per cent of their total income. The main distinction is that former institutions that were registered under section 10(23C) were not required to pass a Board Resolution to accumulate unused income, submit any online form, or even indicate the reason for accumulation.
Accurate and applicable to both trusts and institutions registered under Section 12AB and those registered under Section 10(23C), Form No. 10 is now precise and relevant.
