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Circular No, 2./2024

F. No.370142/6/2024-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(TPL Division)

Dated 05"1 March, 2024

Sub: Order under section 119 or the Income-tax Act, 1961 - reg.

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 sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 (hereinafter referred to as trust or institution under the first regime) of the Income-tax Act, 1961 (hereinafter referred to as the Act) or any trust or institution register d tinder 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.

2. One of the conditions required to be fulfilled by the trust or institution in order to be eligible to claim exemption under the first regime. is laid down in clause (b) of the tenth proviso to clause (23C) of section 10 of the Act. This states that in case the total income of the trust or institution, as computed under the Act without giving effect to the provisions of exemption under the first regime, 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.

 2.1 A similar condition is in place for trust or institution under the second regime in sub-clause (ii) of clause (b) of sub-section (1) of section I2A of the Act.

3. Rule 16CC and 1713 of the Income-tax Rules. 1962 (hereinafter referred to as the Rules) prescribe the form of audit report for trust or institution under the first and second regime respectively. They provide that the report of audit of the accounts of a trust or institution, shall be furnished in -

(a) Form No. 1013 where,

  1. the total income of trust or institution, exceeds rupees five crores during the previous year: or
  2. such trust or institution has received any foreign contribution during the previous year; or

 

(iii)such trust or institution has applied any part of its income outside India during the previous year;

(b) Form No. IOBB in other cases.

4. The new forms, Form No. 10131 Form No. 10)313, were notified vide. Notification No. 7 of 2023 dated 21° February, 2023. The above prescription was put in place w.c.f. 01.04.2023, vide the Income-tax (Third Amendment) Rules, 2023, and is therefore, effective for assessment year 2023-24 and subsequent assessment years. The due date for furnishing such audit reports for the AN. 2023-24 was 3114 October, 2023.

5. Prior to the aforesaid amendment or the Rules, the earlier prescribed form for audit report was Form No. 101113 for trust / institution in the first regime and Form No, 1013 for trust / institution in the second regime.

6. thus, A.Y. 2023-24 is the first year when changes described in paragraphs 3 and 4 take effect.

7. It has come to the attention of the Board that in a number of cases trusts / institutions have furnished audit report in Form No. 1013, where Form No. 101313 was required to be furnished for the A.1'. 2023-24. Similarly, in number of cases trusts / institutions have furnished audit report in Form No. 10B13. where Form No. 1013 was required to be furnished for the A.Y. 2023-24.

As noted above, non-furnishing of audit report in the prescribed font would result in denial of exemption in such cases as it is one of the conditions which is required to be satisfied for claim of exemption.

8. In view of the above, the Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby allows those trusts / institutions which have furnished audit report on or before 31" October, 2023 in Form No. 108 where Form No. 101313 was applicable and vice-versa, to furnish the audit report under clause (b) of the tenth proviso to clause (23C) of section 10 and sub-clause (ii) of clause (b) of sub-section 0) of section 12A of the Income-tax Act, 1961, in the applicable Form No. 10B / 10138 for the assessment year 2023-24, on or before 31s' March. 2024.

(Sourabh Jain)

Under Secretary (TPL) - J, CBDT

Copy to the:

1. PSI OSD to FM/ PS/OSD to MoS(F).

2.PS to the Finance Secretary.

3.Chairman and Members, CBDT.

4.Joint Secretaries/ CsIT/ Directors/ Deputy Secretaries/ Under Secretaries, CBDT.

5.CitAG of India.

6.JS & Legal Adviser, Ministry of Law & Justice. New Delhi.

7. Institute of Chartered Accountants of India.

8.Web Manager, 0/o DOIT(Systerns) with request to upload on the departmental website of incometaxindia.gov.in.

9.Pr. Commissioner of Income-tax (Media & TP) and official Spokesperson, CBDT, New Delhi.

10.JCIT, Data-Base Cell for uploading on irsoflicersonline.gov.in