Form 10B & Form 10BB

For Filing of Audit Report u/s 12A and 10(23C) of Income Tax Act,1961 by fund or
trust or institution or any university or other educational institution or any
hospital or other medical institution for A.Y 2024-25.

21-09-2024 1
Our Expectations

Request all to please remain In case you have any query during the
on Mute during the session. presentation, type your query in Chat Box
with your email id.
 Agenda

1 Purpose of Webinar and applicability of Form 10B and Form 10BB

2 Common Inconsistencies noted in data entered in Form 10B/Form 10BB and ITR 7

3 Taxpayers Grievances and Resolutions

4 Questions & Answers

21-09-2024 3
 Purpose of the Webinar

The objective of the Webinar is to discuss and understand:

• The process of filing Form 10B and Form 10BB in online mode or through offline utility for AY 2024-25.
• The best practices for filing the forms
• Address grievances and provide resolutions for smooth filing of Form 10B and Form 10BB
 Income of Charitable Trusts, Funds, Institutions or Universities

• Income of any fund or institution or trust or any university or other educational institution or any
hospital or other medical institution referred to in sub-clause (iv) or subclause (v) or sub-clause (vi) or
sub-clause (via) of clause (23C) of section 10 of the Income-tax Act, 1961 or

• any trust or institution registered under section 12AA or section 12AB of the Act (hereinafter referred
to as trust or institution under the second regime)

• Is exempt subject to fulfilment of certain conditions specified under various sections of the Act
 Audit of Accounts of Charitable Trusts, Funds, Institutions or
Universities

• One of the conditions required to be fulfilled by the trust or institution in order to be eligible to claim
exemption, is laid down in clause (b) of the tenth proviso of section 10(23C) of the Act.

• This states that where total income of the trust or institution, as computed under the Act without giving
effect to the provisions of exemption, exceeds the maximum amount which is not chargeable to
income-tax in any previous year, the trust or institution is required to get its accounts audited and
furnish the audit report in the prescribed form before the specified date.

• A similar condition is in place for trust or institution in subclause (ii) of clause (b) of sub-section (1 ) of
section 12A of the Act.
 Audit Forms and their Applicability

Vide Notification No. 7/2023 (dated 21st February 2023) the Central Board of Direct Taxes (CBDT) has notified
new audit reports in Form 10B and Form 10BB to be furnished by a fund or trust or institution or any university
or other educational institution or any hospital or other medical institution under section 12A(1) and under
tenth proviso to section 10(23C):
➢ Form No. 10B where—
▪ The total income of auditee, without giving effect to the provisions of mentioned clause/section, as
applicable-
▪ sub-clauses (iv), (v), (vi) and (via) of clause 23C of section 10 or Sections 11 and 12 of the Act,
exceeds rupees five crores during the previous year, or
▪ Auditee has received any foreign contribution during the previous year ,or
▪ Auditee has applied any part of its income outside India during the previous year.

➢ Form No. 10BB in other cases

 Major Change after 01.04.2023

Up to A.Y. 2022-23, Audit report in Form 10B or Form 10BB was based on the section under which
exemption was claimed. Form 10B was required to be furnished under clause (b) of section 12A while Form
10BB was required to be furnished under clause 23C of Section 10 of Income Tax Act, 1961.

This was completely changed w.e.f A.Y. 2023-24.

From A.Y. 2023-24 onwards, Audit report in Form 10B or Form 10BB is condition based and is required to
be furnished both under section 10(23C) and under Section 12A of Income Tax Act,1961 as per Rule 16CC
and Rule 17B (as amended) of the IT Rules, 1962.
 Pre-requisites for filing the Forms

• Taxpayer is registered at e-filing portal.

• Taxpayer has valid Username (PAN) and Password.

• Taxpayer should have a valid DSC, if applicable or EVC. DSC should be registered at e-filing portal & not

expired.

• Taxpayer should assign the Form to CA along with necessary documents

• CA is registered at e-filing portal and having valid DSC.

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 Process Flow

Step-1: by Taxpayer

Assign Form for the relevant AY/FY+ PAN+ Membership No.

combination through File Income Tax Forms/ My CA Functionality by
selecting Filing Type and Attachments (wherever applicable) under
Taxpayer Login.

Step-4: by CA
Step-3: by CA
Prepare and Upload Form, upload attachments
Navigate to Worklist For Your Action
(wherever applicable) and submit using DSC
in Pending for Upload List and click Step-2: by CA
under ARCA Login.
on Upload Form under ARCA Login.
Navigate to Worklist, go to
Step-5: by Taxpayer Step-6: by CA/Taxpayer Forms Request List and
Accept the Request under
Navigate to Worklist “For Your Action” and click The submitted Form can be ARCA Login.
on Accept and complete the process by using downloaded from View Filed Forms
prescribed modes of e-verification under Functionality for both CA and
Taxpayer Login. Taxpayer Login

10
Frequently Asked Questions on
Form 10B and Form10BB
(in connection with ITR 7)
1 Is it mandatory to file return within the due date u/s 139(1) to claim exemption?
What is the due date of filing the ITR?

• Yes, it is mandatory to file return in Form ITR 7 within the due date u/s 139(1)/ 139(4) to claim
exemption. The due date of filing ITR 7 is 31st October, 2024 and due date for filing Audit Report in
Form 10B/ Form 10BB is 30th September, 2024 for A.Y 2024-25 .

• If audit is required u/s 92E then return due date is 30th November, 2024 and due date for filing Audit
Report in Form 10B/ Form 10BB is 31st October, 2024 for AY 2024-25.
 What are the consequences of filing wrong Form 10B or Form 10BB?
2

• Please note that filing of Form10B where Form 10BB is applicable and vice-versa, will amount to non-
furnishing of audit report in the prescribed form which would result in denial of exemption as it is one of the
conditions which is required to be satisfied for claim of exemption.
 Amount relating to Income and expenditure entered in the return of income should match with
3 corresponding fields of Audit report i.e. Form 10B or Form 10BB.

Fields of ITR should be tallied with corresponding amount mentioned in Audit Report i.e. Form 10B or
Form 10BB, as the case may be. For item wise details of fields, kindly refer to Annexure 1 (Page 45 to 51)

CBDT_e-Filing_ITR 7_Validation Rules_V 1.0 (incometax.gov.in)

 Inconsistencies noticed in data
entered in Form 10B/ Form 10BB
and ITR-7
 Inconsistency in "Income accumulated or set apart for application to charitable or religious purposes or
1 stated objects of trust or institution to the extent it does not exceed 15 % of the income" at Sl. No. 6(v) of
Schedule Part B-TI (Part B1) of ITR 7 and Sl. No. 23(xix) of Form 10BB

During a financial year, assessee is Schedule : Part B (TI)

expected to apply whole of the sums STATEMENT OF INCOME FOR THE PERIOD ENDED ON 31ST MARCH 2024
received by it towards charitable objects.

However, they are permitted to

accumulate sums towards charitable
objects provided that the sums so
accumulated do not exceed 15% of the
income from property held for charitable
objects.
 Inconsistency in "Income accumulated or set apart for application to charitable or religious
1 purposes or stated objects of trust or institution to the extent it does not exceed 15 % of the income"
at Sl. No. 6(v) of Schedule Part B-TI (Part B1) of ITR 7 and Sl. No. 23(xix) of Form 10BB

Application of Income
23. Application of income (excluding application not eligible and reported under serial number 27)

Amount to be disallowed from application

 Inconsistency in "Income accumulated under the provisions of Explanation 3 to the third proviso
2 to section 10(23C) or section 11(2)" at Sl. No. 6(vi) of Schedule Part B-TI (Part B1) and Sl. No.
23(xviii) of Form 10BB.
Schedule : Part B (TI)
Where 85% of the income
STATEMENT OF INCOME FOR THE PERIOD ENDED ON 31ST MARCH 2024
not applied [section 11(2)]
Where 85% of the income is
not applied for charitable
purposes, the assessee is
required to accumulate or set
apart such income for future
application. The incomes so
accumulated will not be
included in the total income
of the assessee subject to
furnishing of Form No. 10
electronically on the e-filing
portal on or before the due
date for filing the return of
income and fulfillment of
applicable conditions.
 Inconsistency in "Income accumulated under the provisions of Explanation 3 to the third proviso
2 to section 10(23C) or section 11(2)" at Sl. No. 6(vi) of Schedule Part B-TI (Part B1) and Sl. No.
23(xviii) of Form 10BB.

Application of Income
23. Application of income (excluding application not eligible and reported under serial number 27)

Amount to be disallowed from application

 Inconsistency in "Income deemed to be applied in any preceding year under clause 2 of Explanation 1 of
3 section 11(1) (applicable only when exemption is claimed u/s 11 and 12)" at Column "Total" of Sl. No. C(3) of
Schedule A and Sl. No. 27(B) of Form 10BB
Schedule A :
Amount applied to stated objects of the trust/institution during the previous year from all sources referred to in C1 to C7 of this table
[to be filled by assessee claiming exemption u/s 11 and 12 or u/s 10(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or 10(23C)(via)].
Schedule A Table C Revenue Capital Total
includes revenue
and capital sources
of funds to meet
application to
stated objects of the
trust/institution
during the previous
year from all
sources referred to
in C1 to C7
 Inconsistency in "Income deemed to be applied in any preceding year under clause 2 of Explanation 1 of
3 section 11(1) (applicable only when exemption is claimed u/s 11 and 12)" at Column "Total" of Sl. No. C(3) of
Schedule A and Sl. No. 27(B) of Form 10BB.

Application of Income out of different sources

 Inconsistency in "Borrowed Fund" at Column "Total" of Sl. No. C(6) of Schedule A and Sl. No.
4 27(E) of Form 10BB

Schedule A :
Amount applied to stated objects of the trust/institution during the previous year from all sources referred to in C1 to C7 of this
table [to be filled by assessee claiming exemption u/s 11 and 12 or u/s 10(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or 10(23C)(via)].
Schedule A Table C Revenue Capital Total
includes revenue and
capital sources of
funds to meet
application to stated
objects of the
trust/institution
during the previous
year from all sources
referred to in C1 to
C7
 Inconsistency in "Borrowed Fund" at Column "Total" of Sl. No. C(6) of Schedule A and Sl. No.
4 27(E) of Form 10BB.

Application of Income out of different sources

 Inconsistency in "Amount accumulated or set apart for application to charitable or religious purposes or for

5
the stated objects of the trust/institution to the extent it does not exceed 15 per cent of income derived from
property held in trust/ institution under section 11(1)(a)/11(1)(b) or in terms of third proviso to section
10(23C)" at Sl. No. 6(v) of Schedule Part B-TI (Part B1) and Sl. No. 31(xxi) of Form 10B.
Schedule : Part B (TI)
STATEMENT OF INCOME FOR THE PERIOD ENDED ON 31ST MARCH 2024

Part B- TI is the
Statement of
income for the
period ended on
31st march,
2024 and Sl.No.
6(v) is amount
accumulated or
set apart for
application for
charitable or
religious
purposes
 Inconsistency in "Amount accumulated or set apart for application to charitable or religious purposes or for

5 the stated objects of the trust/institution to the extent it does not exceed 15 per cent of income derived from
property held in trust/ institution under section 11(1)(a)/11(1)(b) or in terms of third proviso to section
10(23C)" at Sl. No. 6(v) of Schedule Part B-TI (Part B1) and Sl. No. 31(xxi) of Form 10B
 Inconsistency in "Donation to any person other than trust or institution registered u/s 12AB or
6 approved u/s 10(23C)(iv)/(v)/(vi)/(via)" at Column "Total" of Sl. No. B(4) of Schedule A and Sl. No.
23(xi) of Form 10BB
Schedule A :
Amount applied to stated objects of the trust/institution during the previous year from all sources referred to in C1 to C7
Table B of Schedule A contains of this table [to be filled by assessee claiming exemption u/s 11 and 12 or u/s 10(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or
amount not allowed as application 10(23C)(via)].

other than that applied to stated Revenue Capital Total

objects of the trust/institution
during the previous year from
sources in C2 to C7.

Donation to any person other than

trust or institution registered u/s
12AB or approved u/s
10(23C)(iv)/(v)/(vi)/(via) is not
allowed as application.

Column Total contains total of

capital and revenue.
 Inconsistency in "Donation to any person other than trust or institution registered u/s 12AB or
6 approved u/s 10(23C)(iv)/(v)/(vi)/(via)" at Column "Total" of Sl. No. B(4) of Schedule A and Sl. No.
23(xi) of Form 10BB.

Application of Income
Amount to be disallowed from application
 Inconsistency in "Income of earlier previous years up to 15% accumulated or set apart" at Column
7 "Total" of Sl. No. C(4) of Schedule A and Sl. No. 37(C) of Form 10B

Schedule A :
Amount applied to stated objects of the trust/institution during the previous year from all sources referred to in C1 to C7
of this table [to be filled by assessee claiming exemption u/s 11 and 12 or u/s 10(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or
Schedule A Table C includes 10(23C)(via)].
sources of funds to meet
revenue and capital application Revenue Capital Total
to stated objects of the
trust/institution during the
previous year from all sources
referred to in C1 to C7. Column
Total is the total of Capital and
Revenue sources.
 Inconsistency in "Income of earlier previous years up to 15% accumulated or set apart" at Column
7 "Total" of Sl. No. C(4) of Schedule A and Sl. No. 37(C) of Form 10B.
8 Inconsistency in "Income chargeable under Section 11(4)" at Sl. No. 8 of Schedule Part B-TI (Part B1) and Sl.
No. 35(d) of Form 10B

Schedule : Part B (TI)

STATEMENT OF INCOME FOR THE PERIOD ENDED ON 31ST MARCH 2024

Scope of income under section 11 includes business income of charitable institution under section 11(4)
8 Inconsistency in "Income chargeable under Section 11(4)" at Sl. No. 8 of Schedule Part B-TI (Part
B1) and Sl. No. 35(d) of Form 10B
Taxpayers' grievances and their
resolutions on Form 10B and
Form 10BB
1) ITR-7 requires details of 85% of the donation(s) made to trust or institution(s) registered u/s 12AB or
approved u/s 10(23C)(iv)/(v)/(vi)/(via) while Form 10B/10BB does not ask for such information.
OR
There is a mismatch in Taxable income between ITR-7 and Form 10BB/10B. Donation paid to other Trust
are shown as a separate row in Schedule A of ITR 7 which is not present in Form 10BB/10B Audit forms.

Resolution-
ITR-7, Form 10B, and Form 10BB are available on e-Filing portal as per forms notified by Income tax
Department. Hence, you are requested to provide the details as required in ITR and Form respectively.
 2) I cannot find A.Y. 2024-25 for filing Form 10B/10BB.
OR
Form 10B/10BB is not enabled for A.Y. 2024-25?

Resolution-
Form 10B and 10BB are available for filing for A.Y. 2023-24 & A.Y.2024-25 on e-filing portal as-
Form 10B (A.Y. 2023-24 onwards)
Form 10BB (A.Y. 2023-24 onwards)

Please note that separate forms were available till A.Y. 2022-23.
 3) How to check, which form is applicable i.e. Form 10B or 10BB?

Resolution-
You are requested to refer amended Rules 16CC and 17B of Income tax Rules, which lists out the three
conditions in which Form 10B is applicable. In other cases, Form 10BB is applicable.
 4) Whether Form 10B is not available in online mode for filing?

Resolution-
Please note that Form 10B is available only in Offline mode only for filing. Departmental utility is also
available for the same, available under “Downloads” section.

However, Form 10BB can be filed either through Online mode or Offline mode.
 5) I am getting error while uploading json as-

Resolution-
Please verify that the details listed in error screenshot are correct i.e. details present in form json are
matching with the Form assignment details.
 6) I am getting “Schema Version” error. What to do?

Resolution-
Please note that the json being upload by you is always as per the latest schema provided by
department which is available under “Downloads” section on e-Filing portal.
Also, please ensure to use latest departmental utility in order to avoid such error.
 7) Schedule is not enabled (greyed off) while trying to enter data in Form 10B.

Resolution-
Schedules in Form 10B will get enabled and will be mandatory, only in case any values are entered in the
relevant Serial numbers. Hence, please ensure the relevant amount is entered in the respective Serial
Number in case the said schedule is applicable.
 8) Form uploaded by CA but Acknowledgement Number is not generated.

Resolution-
Please note that form filing gets completed once the form uploaded by CA gets accepted by the
taxpayer. Once the taxpayer accepts the same, Acknowledgement number will be generated and ARN
Receipt will be available for download.
 Filing of Form 10B & Form 10BB– Some Do’s and Dont’s

In order to avoid errors in form filing and verification, kindly ensure

• To use the latest version of the utility for generating JSON

• Ensure that the
✓ PAN of Taxpayer
✓ Assessment Year
✓ CA Membership Number
✓ Form Filing Type
are correctly entered in the utility and selected on the portal.
• Install the latest Emsigner/Embridge application in your system
• Log in the DSC token
• Profile and contact details are updated in taxpayer and CA login
• Check Local Host e-Mudhra is not blacklisted by the system Admin
• E-Mudhra token driver is updated

21-09-2024 41
Grievance Handling

While sharing your queries on grievance section on e-filing portal, kindly provide the
following details:

1. Mention the Grievance ID if the grievance is already raised earlier

2. Name and Contact details of the person who can explain the problem
3. PAN of the taxpayer
4. User ID at e-filing portal of Chartered Accountant
5. AY
6. Mention Form No. 10B or Form No. 10BB
7. Details of Problem
8. Attach screenshots
9. Attach JSON if relevant

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 For more information refer FAQs on Form 10B and Form 10BB

Form 10B (A.Y. 2023-24 onwards) FAQs | Income Tax Department

Form 10BB (A.Y. 2023-24 onwards) FAQs | Income Tax Department

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Thank You

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