CBDT clarifies reporting of person making substantial contribution in Form 10B / 10BB

CBDT clarifies on reporting of person making substantial contribution in Audit Report in Form 10B / 10BB for AY 2023-24.

From Assessment Year 2023-24, audit report of charitable institutes is required to filed in Form 10B or Form 10BB. Audit report in the case of a fund or trust or institution or any university or other educational institution or any hospital or other medical institution, under clause (b) of the tenth proviso to clause (23C) of section 10 , or sub-clause (ii) of clause (b) of sub-section (1) of section 12A of the Income-tax Act, 1961 (the Act), as the case may be, is required to be
furnished in Form No. 10B/Form No. 10BB.

Section 13(3) of the Income Tax Act 1961 puts some restrictions on payments to specified persons. Further as per section 13(3)(b) any person is considered to have made a substantial contribution to the trust or institution, if his total contribution up to the end of the relevant previous year exceeds fifty thousand rupees.

Accordingly, clause 41 of Form 10B  and clause 28 of Form 10BB requires reporting of all persons who have made a  substantial contribution (i.e. in excess of fifty thousand rupees) to the trust or institution ‘,

Representations were made to the CBDT regarding difficulties faced in filling those details due to large number of entries exceeding the threshold of Rs. 50 thousands.

CBDT has issued Circular No. 17/2023 dated 09/10/2023 and issued the following clarification using powers under section 119 that  for the purposes of providing details in (i) Form No. 10B in the Annexure, in row 41 ; and (ii) Form No. 10BB in the Annexure, in row 28, for the assessment year 2023-24:

(a) the aforesaid details (that is, of persons making substantial contribution) may be given with respect to those persons whose total contribution during the previous year exceeds fifty thousand rupees;

(b) details of relatives of such person, as referred to In (a) above may be provided, if available.

(c) details of concerns in which such person, as referred to in (a) above, has substantial interest may be provided, if available.

• Penalty u/s 270A deleted as assessee filed revised computation during scrutiny
• Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT
• Merely ex-parte rectifying computation without amending assessment order not make it nullity- ITAT
• Once assessee discharges primary onus, it shifts to AO to bring evidence to contrary – ITAT
• Cost Inflation Index for FY/Tax Year 2026-27 notified by CBDT. See Up-to-date Table of CII