Various Form to be furnished by the trust or institution - Income Tax - Ready Reckoner - Income Tax

Various Form to be furnished by the trust or institution As per circular no. 06/2023 date 24/05/2023 various forms to be submitted by trust or institution for due date refer circular read with Form 10A All the existing trusts were required to apply for registration/approval on or before 30.06.2021. Such registration/approval shall be valid for a period of 5 years. Thus, existing trusts are required to apply for fresh registration/approval and once the registration/approval is granted it is valid for five years. Form No. 10AB Provisionally registered/approved trusts will again need to apply for regular registration / approval in Form No. 10AB at least six months prior to the expiry of the period of provisional registration/approval or within six months of the commencement of activities, whichever is earlier. Form 10BD The deduction under section 80G of the Act in respect of a donation made by a donor to a fund or institution referred to in sub-clause (iv) of clause (a) of sub-section 80G(2), shall be allowed to the donor only if a statement of such donations is furnished by the donee in Form 10BD. Form 10BE The certificate of such donation is required to be provided in Form No. 10BE. Further, Form No. 10BD and Form No. 10BE are required to be furnished on or before the 31st May, immediately following the financial year in which the donation is received. Filing of FORM 10 9A amendment thereof Notification No. 45/2023 dated 23.06.2023 and through Income-tax Rules, 2023, They shall come into force from the 1st day of October, 2023. Form 10 Finance Act, 2023 has amended section 11(2) of the Act to provide that statement of accumulation as referred to in clause (a) of section 11(2) Form No. 10 is required to be furnished at least two months prior to the due date of furnishing return of income under section 139(1). Form 9A the due date for furnishing the option for deemed application of income in Form No. 9A under clause (2) of the Explanation 1 to section 11(1) of the Act has also been amended to be at least two months prior to the due date of furnishing return of income, under section 139(1). Amendment by Finance Act 2023 Amendments have been made in Section 11 by the Finance Act 2023 to provide that Forms 9A and 10 shall be filed at least two months prior to the due date specified under Section 139(1) for furnishing the return of income for the previous year. Where the Trust or institution referred to in sub clause (iv)(v)(vi)(via) of clause (23C) of Sec 10 or Trust/ Institution registered u/s 12AA/12AB of the Act doesn t apply or fail to apply 85% of its income during the relevant previous year on account of two situation covered below: Applicable for trust/ Institution registered under section 10(23C)(iv)(v)(vi)(via) or 12AA/12AB) Accumulated or set apart for application to such objects subject to conditions Applicable for trust/Institution registered u/s 12AA/12AB) Whole or part of the income has not been received during the Relevant year (Scenario 1) OR Income received on 31st March (Scenario 2) 1. Accumulation Period - 5 years 1. File Form 9 on or before filing ITR as specified u/s 139 of the Act. 2. File Form 10 on or before filing ITR as specified u/s 139 of the Act. 2. Scenario 1-should be applied during the PY in which the income received Or in the next immediately FY. 3. invested or deposited in form or mode specified u/s 11(5). 3. Scenario 2- should be applied in the Next immediately FY Filing of Form 10B or 10BB amendment thereof Revised audit report in Form No. 10B and Form No. 10BB have been notified vide Notification No. 7 of 2023 dated 21.02.2023 so as to provide that the report of audit of the accounts of a trust, shall be furnished in - (a) Form No. 10B where, (i) the total income of trust, exceeds Rs 5 crores during the previous year; or (ii) such trust has received any foreign contribution during the previous year; or (iii) such trust has applied any part of its income outside India during the previous year; (b) Form No. 10BB in other cases. Filing of audit report and amendment thereof 1. CBDT vide Notification No. 7/2023 in GSR 118(E) dated 21.02.2023 and through ​Income-tax (3rd Amendment) Rules, 2023, They shall come into force from the 1st day of April, 2023. In the Income-tax Rules, 1962 hereinafter referred to as the principal Rules, for rule 16CC, the following rule shall be substituted, namely:- (A) Rule 16CC - Form of report of audit prescribed under tenth proviso to section 10(23C).-The report of audit of the accounts of a fund or institution or trust or any university or other educational institution or any hospital or other medical institution which is required to be furnished under clause (b) of the tenth proviso to section 10(23C) shall be in- (a) Form No. 10B where- the total income of such fund or institution or trust or university or other educational institution or hospital or other medical institution, without giving effect to the provisions of the sub-clauses (iv), (v), (vi) and (via) of the said clause, exceeds rupees five crores during the previous year; or such fund or institution or trust or university or other educational institution or hospital or other medical institution has received any foreign contribution during the previous year; or such fund or institution or trust or university or other educational institution or hospital or other medical institution has applied any part of its income outside India during the previous year; (b) Form No. 10BB in other cases. Explanation.- For the purposes of sub-clause (II) of clause (a), the expression foreign contribution shall have the same meaning assigned to it in section 2(1)(h) of the Foreign Contribution (Regulation) Act, 2010 . (B) In the principal Rules, for rule 17B , the following rule shall be substituted, namely:- Rule 17B - Audit report in the case of charitable or religious trusts, etc.- The report of audit of the accounts of a trust or institution which is required to be furnished under sub-clause (ii) of clause (b) of section 12A(1), shall be in- Form No. 10B where- the total income of such trust or institution, without giving effect to the provisions of sections 11 and 12 of the Act, exceeds rupees five crores during the previous year; or such trust or institution has received any foreign contribution during the previous year; or such trust or institution has applied any part of its income outside India during the previous year; Form No. 10BB in other cases. Explanation.- For the purposes of sub-clause (II) of clause (a), the expression foreign contribution shall have the same meaning assigned to it in section 2(1)(h) of the Foreign Contribution (Regulation) Act, 2010 Applicability of Form Type of Trust Limit Form No. 10B Trust or Other Institutions registered u/s 12AA/12AB More than ₹ 5 crore Form No.10B Trust or Other Institutions registered u/s 12AA/12AB Receipt of any foreign contribution under FCRA Form No.10B Trust or Other Institutions registered u/s 12AA/AB Application of any income outside India Form No.10B Trust or Other Institutions approved u/s 10(23C) without giving effect to the provisions of the sub- clauses (iv), (v), (vi) and (via) of the said clause Total income is more than ₹ 5 crore Form No.10B Trust or Other Institutions approved u/s 10(23C) Receipt of any foreign contribution under FCRA Form No.10B Trust or Other Institutions approved u/s 10(23C) Application of any income outside India Form No.10BB In any other case not covered above Where total income of Trust or Institution does not exceed ₹ 5 Crore during the previous year. Where the Trust or Institution does not receive any amount of foreign contribution. Where the Trust or Institution does not apply any amount of its income outside India in the Previous Year. Important Notification Circular Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby allows 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, to furnish the audit report under clause (b) of the tenth proviso to section 10(23C) and sub-clause (ii) of clause (b) of section 12A(1) of the Income-tax Act, 1961 , in the applicable Form No. 10B / 10BB for the assessment year 2023-24, on or before 31st March, 2024. [ Circular No. 2/2024 dated 05.03.2024 ] Further Extension of due date - Those trusts/institutions/funds, for which the date of 31st March, 2024 was prescribed to furnish the audit report in the applicable Form No. 10B / 10BB , by the above mentioned Circular No. 02/2024 dated 05.03.2024, the CBDT in exercise of the powers conferred under section 119 of the Act, hereby further allows such trusts / institutions/ funds to furnish such audit report in the applicable Form No. 10B / 10BB on or before 10 th November, 2024. No application for condonation of delay in filing of Form 9A / 10 / 10B / 10BB shall be entertained beyond three years from the end of the assessment year for which such application is made. The time limit for filing of such application within three years from the end of the assessment year will be applicable for application filed on or after the date of issue of this Circular. A condonation application should be disposed of, as far as possible, within six months from the end of the month in which such application is received by the Competent Authority. [ Circular No. 16/2024 dated 18.11.2024 ]