The income tax department permitted the trusts and institutions, which filed audit reports for the AY 2023-24 in wrong forms, to file documents in valid forms by March 31.
As per section 119 of the IT act, the income tax department has extended the due date for filing audit report forms 10B/10BB such as trust, institution, and funds till 10th November 2024. In the order mentioned above by the CBDT department, the audit report could not be filed in the correct prescribed form.
Income of any fund or institution or trust or any university or other educational institution or any hospital is waived from income tax as per the satisfaction of particular conditions.
One condition that needs to be attained via the trust or the institution for getting eligibility to avail of the exemption is that it is needed to get its accounts audited and file the audit report in the specified Form No. 10B / 10BB before the stipulated date.
The Central Board of Direct Taxes (CBDT) in a circular, said that in several cases trusts or institutions have provided the audit reports in Form No. 10B, where Form No. 10BB was required to be given and vice versa for the A.Y. 2023-24.
According to the rules of I-T, the audit report of the accounts of the trust or institution will be provided in Form No. 10B in which the total income of the trust or institution surpasses Rs 5 crores in the previous year or such trust or institution has obtained any foreign contribution at the time of the previous year; or such trust or institution has applied any part of its income outside India during the previous year.
Form 10BB needed to be filed in all the additional matters.
As per the CBDT (Central Board of Direct Taxes) the non-filing of the audit report in the mentioned form shall consequences in the refusal of exemption since the same is one of the conditions that is needed to be attained for claiming the exemption.
