Tax Alert: Attention Trusts and Institutions
Relief Granted for Incorrect Audit Report Form!
3/7/20242 min read
Overview:
The Central Board of Direct Taxes (CBDT) has provided relief to trusts and institutions that mistakenly filed their audit report in the wrong form for the Assessment Year (AY) 2023-24. This blog post explains the details of this update, including benefits, steps involved, pre-requisites, deliverables, and frequently asked questions.
Benefits:
Avoids Potential Tax Demand: Filing the audit report in the correct form ensures compliance with one of the conditions for claiming tax exemption. This prevents the creation of a tax demand due to non-compliance.
Provides Additional Time: The extended deadline of March 31, 2024, allows trusts and institutions time to rectify the error and file the report in the correct form.
Reduces Administrative Burden: This measure eliminates the need for trusts and institutions to re-conduct the audit and file a fresh report.
Steps Involved:
Identify the Error: Verify whether you filed Form 10B when Form 10BB was applicable, or vice versa, for the AY 2023-24.
Download the Correct Form: Download the applicable form (Form 10B or 10BB) from the official website of the Income Tax Department of India https://incometaxindia.gov.in/Pages/default.aspx.
File the Report: File the audit report in the correct form electronically on or before March 31, 2024.
Pre-requisites:
The audit report must have been originally filed on or before October 31, 2023.
The trust or institution must be eligible to file Form 10B or 10BB as per the Income Tax Act, 1961.
Deliverables:
A correctly filed audit report in Form 10B or 10BB on the incometaxindia.gov.in website.
Peace of mind knowing you are compliant with tax regulations.
FAQs:
Q: What happens if I don't file the report in the correct form by March 31, 2024? A: Not filing the report in the correct form by the deadline may lead to denial of tax exemption and potential tax demand.
Q: Do I need to re-conduct the audit if I filed the report in the wrong form? A: No. You can simply file the report in the correct form without re-conducting the audit.
Related Services:
Income Tax Return Filing
Audit Services
Tax Consultancy
