CBDT Extends Deadline for Trusts, Institutions to File Audit Reports

The Income Tax Department has granted trusts and institutions that filed audit reports for the assessment year 2023-24 in incorrect forms the opportunity to rectify their submissions by March 31, 2024.

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Incorrect Form Submissions

In a circular issued on Tuesday, the Central Board of Direct Taxes (CBDT) acknowledged that several trusts and institutions had inadvertently furnished audit reports in Form No. 10B when Form No. 10BB was required, and vice versa, for the assessment year 2023-24.

Form 10B vs. Form 10BB

According to Income Tax (I-T) rules, trusts or institutions with a total income exceeding Rs 5 crores during the previous year, or those that have received foreign contributions or applied any part of their income outside India during the previous year, must furnish their audit reports in Form No. 10B.

In all other cases, Form 10BB is required.

Consequences of Incorrect Form Submission

The CBDT emphasized that non-furnishing of the audit report in the prescribed form could result in the denial of exemption for trusts and institutions, as it is a mandatory condition for claiming exemption under the Income Tax Act.

Rectification Opportunity

Recognizing the inadvertent errors made by trusts and institutions, the CBDT has allowed those entities that submitted audit reports in the incorrect form on or before October 31, 2023, to rectify their submissions by filing the audit report in the applicable Form No. 10B/10BB for the assessment year 2023-24, on or before March 31, 2024.

This measure provides relief to trusts and institutions that unintentionally filed their audit reports in the wrong forms, ensuring that they can comply with the requirements and claim exemption under the Income Tax Act.