Form 10B Overview
Previously, Form 10B allowed taxpayers to file audit reports if they were registered as charitable or religious trusts or institutions under Section 12A by submitting Form 10A. However, the recent amendment broadens the scope. As per the Income Tax (Third Amendment) Rules 2023, Form 10B now pertains to audit reports of charitable funds, universities, educational institutions, hospitals, or other medical institutions with a total income exceeding Rs.5 crore in the previous fiscal year under Section 12A.
Applicability of Form 10B
Organizations or trusts registered under Section 12 are mandated to file Form 10B. The following scenarios necessitate the filing of Form 10B:
- The total income surpassed Rs.5 crore in the preceding fiscal year.
- Receipt of any foreign contribution, irrespective of registration under Section 12A or approval under Section 10(23C).
- Usage of income outside India in the previous year.
Due Date for Form 10B
For trusts, institutions, universities, and hospitals registered under Section 12A, the due date for Form 10B is usually one month before the due date for filing the income tax return. However, an extension until October 31, 2023, has been granted for the previous year, 2022-23 (AY 2023-24).
How to Download Form 10B
To file your income tax return, access the official website of the Income Tax Department. Form 10B can be downloaded offline from the same website. Follow this link to download Form 10B offline.
When to File Form 10B
If the total income of a trust or institution exceeds Rs.5 crore, excluding Sections 11 and 12, or if it exceeds the maximum non-taxable amount, a CA must audit the financial reports. Alongside the filed Form 10B, the institution or trust must provide income receipts, returns, and a CA-signed audit report.
Filing Process for Form 10B
As CAs usually conduct audits for trusts or institutions, the taxpayer assigns Form 10B to a CA. The filing process involves:
- Log in to the official Income Tax e-filing website using valid CA credentials.
- Select ‘Pending Actions’ and click ‘Worklist’ to view assigned forms.
- Accept or reject forms, specifying reasons.
- Click ‘File Form’ from the ‘Worklist’ and proceed after verifying details.
- Provide details for each section, preview, and proceed to e-verify.
- Validate using a Digital Signature Certificate.
- A ‘Submitted successfully to Tax Payer’ message will appear upon successful validation.
Form 10B Guidance Note
Before filing Form 10B, ensure:
- The taxpayer and CA are registered users on the Income Tax Department’s e-filing portal.
- The taxpayer adds the CA through the My CA service.
- PAN status of both CA and taxpayer is active.
- The CA possesses an active, registered, and valid Digital Signature Certificate.
- Taxpayers have obtained or applied for registration under Section 12A.
Difference between Form 10B and 10BB
| Criteria | Form 10B | Form 10BB |
|---|---|---|
| Section | Rule 17B of Section 12AB | Rule 16CC under Section 10 |
| Purpose | Audit and regulate charitable and religious trust | Regulate the income of educational institutions, universities, and medical institutions |
| Yearly Income Limit | Total income exceeding Rs.5 crore | Total income less than Rs.5 crore |
| Foreign Contribution | Can receive any amount of foreign contributions | Does not receive any foreign contribution |
| Income Spent Outside India | Applies income outside India | Does not apply any income outside India |
Conclusion
In conclusion, understanding the intricacies of Form 10B is essential for charitable trusts, institutions, and NGOs seeking compliance with the latest amendments to the Income Tax Rules. The widened applicability, extended due dates, and detailed filing procedures outlined in this guide empower taxpayers to navigate the complexities seamlessly.
