You are currently viewing Form 10B of the Income Tax Act: Applicability, Due Date, Download, and Filing Process

Form 10B of the Income Tax Act: Applicability, Due Date, Download, and Filing Process

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Form 10B of the Income Tax Act

The Third Amendment of Income Tax Rules in 2023 has significantly changed the filing requirements for charitable trusts, institutions, and NGOs. In this comprehensive guide, we delve into the nuances of Form 10B under the Income Tax Act, covering its applicability, due date, the process of downloading, and the step-by-step procedure for filing.

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:

  1. Log in to the official Income Tax e-filing website using valid CA credentials.
  2. Select ‘Pending Actions’ and click ‘Worklist’ to view assigned forms.
  3. Accept or reject forms, specifying reasons.
  4. Click ‘File Form’ from the ‘Worklist’ and proceed after verifying details.
  5. Provide details for each section, preview, and proceed to e-verify.
  6. Validate using a Digital Signature Certificate.
  7. 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.

Ensuring timely filing is crucial, as missing the due date can lead to severe repercussions. With the extended deadline until October 31, 2023, for AY 2023-24, organizations and trusts can leverage the additional time to gather the necessary documentation and meticulously adhere to the filing process.

For a hassle-free experience, engaging with a qualified Chartered Accountant (CA) who can navigate the e-filing process efficiently is advisable. The collaboration between taxpayers and CAs, as outlined in the Form 10B guidance note, ensures that all prerequisites, including active PAN status and valid Digital Signature Certificates, are in place.

In this tax compliance landscape, Kanakkupillai is a valuable resource for businesses and individuals. Kanakkupillai, with its expertise and commitment to facilitating seamless income tax filing experiences, stands as a trusted partner in the journey towards compliance and financial well-being.

By staying informed, availing the services of experienced professionals, and leveraging platforms like Kanakkupillai, taxpayers can meet their regulatory obligations and streamline their financial processes. As you navigate the realm of Form 10B and Income Tax compliance, let Kanakkupillai be your guide, providing the support and expertise needed for a smooth and successful filing experience.

Frequently Asked Questions

1. Who is required to file Form 10B?

Form 10B must be filed by charitable or religious trusts or institutions registered under section 12A, having submitted applications for registration via Form 10A.

2. What is the last date for Form 10B?

The last date for filing the Tax Audit Report is September 30, 2023, and for filing ITR for FY 2022-23 is October 31, 2023. An extension was granted until November 30, 2023, for ITR-7 and Form 10B for AY 2023-24.

3. What is the limit of 10B?

Trusts and institutions must file Form 10B if they furnish a tax audit report highlighting total income exceeding Rs.5 crore in the previous fiscal year.

4. Is filing Form 10B mandatory?

Yes, filing Form 10B and furnishing the audit report before the due date is mandatory for businesses and companies as per Section 44AB of the Income Tax Act.

Sumitha

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