Extension of Deadline for Trusts/Institutions to Rectify Audit Report Submissions for Tax Exemption

Circular No. 02/2024, issued by the CBDT on March 05, 2024, grants an extension to trusts and institutions that submitted incorrect audit report forms for the assessment year (A.Y.) 2023-24. They are allowed to rectify their submissions by March 31, 2024, especially those needing to switch between Form No. 10B and Form No. 10BB to maintain their tax exemption status.

Eligibility Criteria for Tax Exemption:

The Income-tax Act, 1961, provides tax exemption for income earned by various entities such as funds, educational institutions, hospitals, etc., subject to fulfilling certain conditions.

Prescribed Forms for Audit Report:

Forms for audit reports, namely Form No. 10B and Form No. 10BB, were introduced via Notification No. 7 of 2023, effective from April 01, 2023, for assessment year 2023-24 and onwards.

Changes in Forms for A.Y. 2023-24:

A.Y. 2023-24 saw the implementation of the new forms, marking the first year of their effectiveness.

Rectification of Incorrect Submissions:

The CBDT allows trusts/institutions that erroneously submitted Form No. 10B instead of Form No. 10BB, or vice versa, for A.Y. 2023-24, to rectify their submissions by March 31, 2024. Failure to adhere to the prescribed form may result in denial of tax exemption.