Form 10B of Income Tax Act - IndiaFilings Last updated: August 31st, 2024 3:24 PM

Form 10B: Applicability, Due Date, & How to Download?

Form 10B is a crucial document mandated by the Income Tax Rules 2023, specifically highlighted in the Third Amendment. Charitable trusts, institutions, and NGOs that are either registered under Section 12A or approved under Section 10(23C) of the Income Tax Act are required to furnish a tax audit report when filing Form 10B. This form no.10B ensures compliance with the tax regulations governing these organisations, making it an essential part of their financial reporting process. In this article, you can learn about detailed information regarding Form 10B, including applicability, due date, how to download and file.

What is Form 10B?

Form 10B is an essential audit report form used by charitable and religious trusts, institutions, and other organizations registered under Section 12A of the Income Tax Act, 1961. Initially, it was applicable to taxpayers who had either registered or applied as charitable entities by filing Form 10A. However, under the Income Tax (Third Amendment) Rules 2023, the scope of this form has been expanded. It now applies to audit reports for charitable funds, universities, educational institutions, hospitals, and other medical institutions whose total income in the previous financial year exceeds Rs. 5 crore.

Form 10B Applicability

Every organization or trust registered under Section 12 of the Income Tax Act is required to file Form 10B as per the Third Amendment of the Act. This form is applicable in the following scenarios:

Based on Income

  • If the total income of the trust or institution, without using the provisions of:
    • sub-clauses (iv), (v), (vi), and (via) of clause 23C of section 10
    • sections 11 and 12 of the Act, exceeds Rs. 5 crores during the previous year.

Based on Foreign Contributions

  • If any foreign contribution is received during the previous year by any trust or institution.

Based on Income Usage Outside India

  • If trusts or institutions applied any part of their income outside India during the previous year.
In summary, Form 10B is mandatory for trusts and institutions:
  • Exceeding the income threshold: If their total income exceeds Rs. 5 crores.
  • Receiving foreign contributions: Even if they are not registered under Section 12A or approved under Section 10(23C).
  • Using income outside India: If they have spent any portion of their income in foreign countries.

Form 10B Due Date

Trusts, institutions, universities, and hospitals registered under Section 12A or 10(23C) must submit a tax audit report along with Form 10B. The due date for filing Form 10B is typically one month before the income tax return filing deadline. For instance, if the income tax return due date for a specific financial year is October 31st, then this form must be submitted by September 30th of the same year.

How to Download Form 10B?

To download Form 10B for offline use, follow these steps:
  1. Visit the Income Tax Department's Official Website: Go to the official website of the Income Tax Department of India.
  2. Navigate to the Download Section: Look for the "Downloads" or "Forms" section on the website.
  3. Select Income Tax Forms: Choose the option related to income tax forms.
  4. Find Form 10B: Locate Form 10B. The form might be categorized under "Trusts and Institutions" or "Other Forms."
  5. Choose the Relevant Assessment Year: Select Form 10B for the appropriate assessment year (e.g., "A.Y. 2023-24 onwards" if you are filing for the financial year 2022-23).
  6. Download the Form Utility: Click on the "Download Form Utility" or similar option to obtain the software or tool necessary to fill out this form.
Once you've downloaded the form utility, you can fill it out offline and then submit it to the Income Tax Department as per the prescribed guidelines.

What are the Contents of Form 10B?

Form 10B consists of five primary sections that a Chartered Accountant (CA) must complete before submission:
  1. Annexure I: Outlines the details of income generated for charitable or religious purposes.
  2. Annexure II: Provides details of income or property used for the benefit of individuals mentioned in Section 13(3) of the Income Tax Act.
  3. Annexure III: Details previously held investments in which individuals referred to in Section 13(3) have a substantial interest.
  4. Verification: Requires the CA to verify the accuracy and completeness of the information provided in the form.
  5. Attachments: Allows for the attachment of relevant documents and files supporting the information provided in the form.

When to File?

A trust or institution must file Form 10B with an audited financial report by a Chartered Accountant (CA) in two primary scenarios:
  1. Income Exceeding Taxable Limits: If the total income of the trust or institution, calculated without considering Sections 11 and 12 of the Income Tax Act, exceeds the maximum amount exempt from taxation for the specific financial year.
  2. Charitable or Religious Nature: If the trust or institution is engaged in charitable or religious activities and is either registered under Section 12A or 10(23C) of the Income Tax Act or has submitted an application for registration.
In both cases, the trust or institution must provide receipts of income, an income tax return, and an audited report signed by the CA when filing Form.

How to File 10B Online?

To file Form 10B electronically, follow these steps:
  1. Log in to the e-Filing Portal: Access the Income Tax Department's e-Filing portal using your valid CA credentials.
  2. View Assigned Forms: Navigate to the "Pending Actions" section and click "Worklist" to see all forms assigned to you by taxpayers.
  3. Accept or Reject Form 10B: Accept the Form 10B assignment from the relevant taxpayer.
  4. File the Form: Click "File Form" against Form 10B in the Worklist.
  5. Verify and Continue: Review the form details and proceed to the next step.
  6. Start Filling: Click "Let's Get Started" on the instructions page.
  7. Enter Details: Fill in all the required information and preview the form.
  8. Proceed to e-Verify: Click "Proceed to e-Verify" on the preview page.
  9. Submit Form: Submit the form using your Digital Signature Certificate (DSC).
Upon successful submission, the taxpayer will receive an email and SMS notification, allowing them to accept or reject the filed Form.

Form 10B Guidance Note

Before filing Form 10B, both the taxpayer and Chartered Accountant (CA) must ensure the following:
  • Registration: Both parties should be registered users on the Income Tax Department's e-filing portal.
  • CA Assignment: The taxpayer must add the CA to their e-filing account using the "My CA" service.
  • Active PAN: Both the CA and taxpayer must have active PAN statuses.
  • DSC: The CA must possess an active, registered, and valid Digital Signature Certificate (DSC).
  • Registration or Application: Taxpayers required to file Form 10B should have obtained or applied for registration as a charitable or religious institution or trust under Section 12A or 10(23C).

Difference between Form 10B and Form 10BB

In the following table, you’ll find the difference between Form 10B and Form 10BB, 
Feature Form 10B Form 10BB
Purpose Primarily for charitable or religious institutions registered under section 12AB of the Income Tax Act. Primarily for funds, trusts, and institutions registered under different clauses of section 10(23C) of the Income Tax Act.
Applicability Applicable to organisations with total income exceeding ₹5 lakh or average income exceeding ₹1 lakh during the previous year. Applicable to organisations with total income exceeding ₹5 lakh during the previous year.
Specific Requirements Requires a detailed analysis of the organisation's activities and the application of its income. May require additional information related to the specific nature of the organisation's activities.
Filing Deadline Generally due within the due date for filing the income tax return. Generally due within the due date for filing the income tax return.

Conclusion

Form 10B is a mandatory audit report for charitable and religious trusts, institutions, and NGOs registered under Section 12A or 10(23C). It ensures compliance with tax regulations and provides a comprehensive overview of the organization's financial activities. Understanding the applicability, due date, and filing process of Form 10B is crucial for these entities to maintain their tax compliance and eligibility for tax benefits. By adhering to the guidelines outlined in this article, organizations can effectively file Form 10B and avoid any potential penalties or legal consequences.