New Delhi, March 5 (SocialNews.XYZ) The Central Board of Direct Taxes (CBDT) has given more time to trusts and institutions which have submitted the wrong forms to claim income tax exemption, to rectify their error and submit their audit reports with the forms that are applicable for the purpose.
“Those trusts/institutions which have furnished audit report on or before 31st October, 2023 in Form No. 10B where Form No. 10BB was applicable and vice-versa, must furnish the audit report in the applicable Form No. 10B / 10BB for the A.Y. 2023-24, on or before 31st March, 2024,” CBDT said in a statement issued on Tuesday.
Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in specified sub-clauses of section 10 (23C) of the Income-tax Act, 1961 (the ‘Act’) or any trust or institution registered under section 12AA/12AB of the Act is exempt, subject to fulfilment of certain conditions specified under various sections of the Act.
One of the conditions required to be fulfilled by the trust or institution in order to be eligible to claim exemption, is, that it is required to get its accounts audited and furnish the audit report in the prescribed Form No 10B/10BB before the specified date.
It has come to the CBDT’s notice that in a number of cases, trusts/institutions have furnished audit report in Form No. 10B, where Form No 10BB was required to be furnished for the A.Y. 2023-24. Similarly, in a number of cases trusts/institutions have furnished audit report in Form No. 10BB, where Form No. 10B was required to be furnished for the A.Y. 2023-24.
The CBDT, which is the apex body of the Income Tax Department, said that, non-furnishing of audit report in the prescribed form would result in denial of exemption in such cases, as it is one of the conditions which is required to be satisfied for claim of exemption. The denial of exemption on this account may result in creation of tax demand, it added.
CBDT also said that it has issued a Circular No. 2/2024 in F.No.370142/6/2024-TPL dated 05.03.2024 has been issued. The said circular is available on www.incometaxindia.gov.in.
Source: IANS
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