Understanding the CBDT’s Audit Report Submission Extension for Trusts and Institutions
Introduction
The Central Board of Direct Taxes (CBDT) has recently announced an extension for trusts and institutions to correct their audit report submissions. This move comes as a relief to many organizations that may have filed their reports incorrectly for the Assessment Year (AY) 2023-24.
What’s the Issue?
It was observed that numerous trusts and institutions submitted Form No. 10B instead of Form No. 10BB, and vice versa, for the AY 2023-24. This mix-up could lead to the denial of tax exemptions, as filing the correct form is a prerequisite for exemption eligibility.
The Solution
In response to this, the CBDT issued Circular No. 2/20241, allowing these entities to rectify their submissions by March 31, 2024. This extension is a significant step in ensuring that eligible trusts and institutions can claim their exemptions without penalties.
Who Does This Apply To?
The circular applies to:
- Trusts or institutions with a total income exceeding ₹5 crores.
- Those that have received foreign contributions.
- Entities that have applied part of their income outside India.
How to Comply?
Affected organizations should submit the correct form (Form No. 10B or Form No. 10BB) based on their specific circumstances. The new forms were notified via Notification No. 7 of 2023, and the due date for the current AY was initially set for October 31, 2023.
Conclusion
The CBDT’s extension is a welcome decision for trusts and institutions that had inadvertently erred in their audit report submissions. By providing a new deadline, the CBDT has shown its commitment to supporting these entities in fulfilling their tax obligations correctly.
For more detailed information, please refer to the official CBDT Circular 2/20241.