Finally, Form No. 10B utility for filing audit report of the Trust & NGO release
The due date of filing audit report and income tax return is approaching near for all taxpayers who are required to get their books of accounts audited. Now, audit report is required to be filed one month before the income tax return. In short, audit report for most of the taxpayers would be required to be filed by 30TH September.
In case of trust & NGO claiming an exemption, audit report is required to be filed in Form No. 10B. The form has undergone sea change few months back and the utility was not available till last week. Finally, the utility has been released for Form No. 10B. Now, all trust and NGO can file the audit report in From No. 10B. Let us know about Form No. 10B
- Audit Report under clause (b) of the tenth proviso to section 10(23C) and section 12A(1)(b)(ii) of Income tax act,1961, in the case of a fund or trust or institution or any university or other educational institution or any hospital or other medical institution is required to be filed in Form 10B. If trust has applied for or is already registered as charitable or religious trust / institution by filing Form 10A. Form 10B is accessed by the CA added by the taxpayer under the My CA service and is assigned the relevant form.
- Form 10B is required to be filed by the auditor i.e., CAs who are registered users on the e-Filing portal can access Form 10B. Further, the CAs must be assigned the form by the taxpayer in order to access, edit, review and submit it.
- When the total income of a trust or institution is computed without giving effect to Sections 11 and 12 and exceeds the maximum amount not chargeable to income tax in any given financial year, the accounts for the year has to be audited by a CA. This requires, on or before the specified date referred to in Section 44AB, the report of such audit in Form 10B duly signed and verified by the CA.
- t is mandatory to file Form 10B online by the trust and that too before the due date of filing it. It is mandatorily require to be filed now in the online mode only.
- Form 10B is assigned to CA by a taxpayer. The CA can upload and e-Verify the form using a registered, active and valid DSC. The taxpayer then has to accept the request and e-Verify the same using DSC or EVC to complete the submission process.
- Educational Institutions/medical institution with annual receipts up to Rs. 5 crore is not required to file Form No. 10B. Section 10(23C)(iiiad) provides that the income earned by any university or educational institution existing solely for educational purposes and not for the purposes of profit shall be exempt from tax if the aggregate annual receipts of such university or educational institution do not exceed Rs. 5 crore.
Thus, an educational institution having receipts up to Rs. 5 crore can claim full exemption under the above clause without requiring a separate approval or registration and without filing of Form, No. 10B.
- Educational Institutions/medical Institution with annual receipts exceeding Rs. 5 crore are not only required to get them approved but also required to file Form No. 10B. Exemption in the case of an educational institution having receipts exceeding Rs. 5 crore is governed by Section 10(23C)(vi) which states that income earned by any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad), shall be exempt if they are approved by the prescribed authority. Thus, where the aggregate receipts of the institution exceeds Rs. 5 crore, the institution needs a separate approval for claiming the exemption u/s 10(23C).