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(Last Updated On: May 21, 2019)

New audit report Form 10B for Trust/Institution : CBDT Draft Notification

Section 12A of the Income-tax Act, 1961 (the Act) provides for conditions for applicability of Sections 11 and 12 of the Act. One such condition under clause (b) of sub-section (1) thereof is that where the total income of the trust or institution computed without giving effect to Section 11 and 12 exceeds the maximum amount not chargeable to Income-Tax in any previous year, its accounts for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of Section 288.

It further provides that the person in receipt of the said income, furnishes along with the Return of Income for the relevant Assessment Year, the Report of such Audit in the Prescribed Form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

Rule 17B of the Income-tax rules, 1962 provides furnishing of audit report by a trust or institution in Form No. 10B. Said rule & form was notified long ago in the year 1973. Thus, CBDT has released draft notification proposing amendment to Rule 17B & Form 10B in order to rationalise them to align with the requirements of the present times.

The Draft Notification proposing the above amendments has been formulated and uploaded on www.incometaxindia.gov.in for inputs from stakeholders and general public. The inputs on the Draft Rules may be sent electronically at the email address, niraj.kumar82@nic.in, latest by June 5, 2019.

F No 370142/6/2019-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, May 21,2019

Subject: Amendment of Form No 108 of the Income-tax Rules, 1962- Draft notification for inputs from stakeholders and the general public – reg

Section 12A of the Income-tax Act, 1961 (the Act) provides for conditions for
applicability of sections 11 and 12 of the Act. One such condition under clause (b) of subsection (1) thereof is that where the total income of the trust or institution computed without giving effect to section 11 and 12 exceeds the maximum amount not chargeable to income-tax in any previous year, its accounts for that year have been audited by an
accountant as defined in the Explanation below sub-section (2) of section 288. ,

1 .1 It further provides that the person in receipt of said income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

2. Accordingly, vide Income-tax (2nd Amendment) Rules, 1973 wef April 1, 1973 rule 17B and Form 10B were inserted to the Income-tax Rules, 1962 (the Rules) for this purpose. Rule 1 7B of the Rules provide that said report of audit of the accounts of a trust or institution shall be in Form No. lOB. The Form No lOB besides providing the Audit Report provides for filing of “Statement of particulars” as Annexure.

3. As the rule and form were notified long ago, there is a need to rationalise them to align with the requirements of the present times.
4. In view of the above, the rule and form are proposed to be amended by way of substituting,-
(a) Rule 17B with a new rule 17B; and
(b) Form No 10B with a new Form No 10B.
5. The draft notification proposing the above amendments is enclosed and it is requested from the stakeholders and general public to provide inputs electronically at the email address, niraj.kumar82@nic.in, Latest by June 5, 2019

Encl: As above

(Niraj Kumar)
Joint Commissioner of Income-tax (OSD) (TPL)-I
Tel No: 011-2309 5468
E-mail: Niraj.kumar82@nic.in