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New Audit Report of Charitable Institutions Form 10B

The CBDT has notified new Form 10B and Form 10BB that are required to be furnished by charitable trusts, institutions, universities or educational institutions under section 10(23C) and section 12A of the Income Tax Act.

The scope and requirement of Audit Report in Form 10B has been substantially expanded.

It is applicable is for the audit of the accounts of a trust or institution where

  • the total income of such fund or institution exceeds rupees five crores

  • such fund or institution or trust has received any foreign contribution

  • such fund or institution or trust has applied any part of its income outside India

Some of the additional information to be provided in this audit report include

  • Whether books of account or other document as provided in rule 17AA has been maintained, its location and whether covered in audit ?

  • In case one of the charitable purposes is advancement of any other object of general public utility then percentage of receipt from such activity vis-à-vis total receipts and other particulars

  • Details of business undertaking and income from the business undertaking

  • Detailed reconciliation of Form 10 BD filed with total receipts including donations which could not be reported due to non-availability of identification of donor

  • Source for application of income split into electronic receipt and other receipts

  • Details of application resulting in payment or credit in excess of Rs. 50 lakh during previous year to a single person

  • Specific comments whether auditee has incurred any specified violation as referred to in Explanation 2 to the fifteenth proviso to clause (23C) of section 10 or Explanation to sub-section (4) of section 12AB

  • Reporting under 269SS, ST & T, 40A(3) and 40(a)(ia)

  • Details of foreign contribution and amount applied outside India

  • Detailed information and reconciliation of the amount of accumulated income

Form 10BB is for other trusts and institutions who are required to submit audit report but not required to do so in Form 10B. Many of the reporting requirements in Form 10B are also required in Form 10BB as well but only in a limited manner.

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