Form 10B, Download Income Tax Form 10B in PDF Format

FORM NO. 10B for Audit Report Case of Charitable or Religious Trusts or Institutions. FORM NO. 10B is given by the Chartered Accountant to Charitable or Religious Trusts or Institutions when the total income of the trust or institution as computed under the Act exceeds the maximum amount which is not chargeable to income tax in any previous year and assessee is desired to claim exemption under section 11 & 12 of Income Tax Act.

[(1)] The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:—

  (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12AA :

[Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of sections 11 shall apply in relation to the income of such trust or institution,—

 (i)  from the date of the creation of the trust or the establishment of the institution if the Commissioner is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons;

(ii)  from the 1st day of the financial year in which the application is made, if the Commissioner is not so satisfied:]

[Provided further that the provisions of this clause shall not apply in relation to any application made on or after the 1st day of June, 2007;]

[(aa) the person in receipt of the income has made an application for registration of the trust or institution on or after the 1st day of June, 2007 in the prescribed form and manner to the Commissioner and such trust or institution is registered under section 12AA;]

  (b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year], the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the pres-cribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.]

[(2) Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made

FORM NO. 10B

[See rule 17B]

Audit report under section 12A (b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions


I/We have examined the balance sheet of ________________ [name of the trust or institution] as at ___________ and the Profit and loss account for the year ended on that date which are in agreement with the books of account maintained by the said Trust or institution
I/We have obtained all the information and explanations which to the best of
my/our knowledge and belief were necessary for the purposes of the audit. In
my/our opinion, proper books of account have been kept by the head office and the branches of the above named trust/institution visited by
me/us so far as appears from
my/our examination of the books, and proper Returns adequate for the purposes of audit have been received from branches not visited by me/us, subject to the comments given below:

In my/our opinion and to the best of my/our information, and according to information given to me/us, they said accounts give a true and fair view-

(i) in the case of the balance sheet, of the state of affairs of the above named trust/institution as at ___________ and

(ii) in the case of the profit and loss account, of the profit or loss of its accounting year ending on

The
prescribed particulars are annexed hereto.

 

Place

Date

Signed

Chartered Accountant

 

ANNEXURE

STATEMENT OF PARTICULARS

I. APPLICATION OF INCOME FOR CHARITABLE OR RELIGIOUS PURPOSES

1.

Amount of income of the previous year applied to charitable or religious purposes in India during that year

 

2.

Whether the trust/institution
has exercised the option under clause (2) of the Explanation to section 11(1)? If so, the details of the amount of income deemed to have been applied to charitable or religious purposes in India during the previous year

 

3.

Amount of income accumulated or set apart/finally set apart for application to charitable or religious purposes, to the extent it does not exceed 25 per cent of the income derived from property held under trust wholly
/in part only for such purposes.

 

4.

Amount of income eligible for exemption under section 11(1)(c) (Give details)

 

5.

Amount of income, in addition to the amount referred to in item 3 above, accumulated or set apart for specified purposes under section 11(2)

 

6.

Whether the amount of income mentioned in item 5 above has been invested or deposited in the manner laid down in section 11(2)(b) ? If so, the details thereof

 

7.

Whether any part of the income in respect of which an option was exercised under clause (2) of the Explanation to section 11(1) in any earlier year is deemed to be income of the previous year under section 11(1B) ? If so, the details thereof

 

8.

Whether, during the previous year, any part of income accumulated or set apart for specified purposes under section 11(2) in any earlier year-

 

(a) has been applied for purposes other than charitable or religious purposes or has ceased to be accumulated or set apart for application thereto, or

(b) has ceased to remain invested in any security referred to in section 11(2)(b)(i) or deposited in any account referred to in section 11(2)(b)(ii) or section 11(2)(b)(iii), or

(c) has not been utilised for purposes for which it was accumulated or set apart during the period for which it was to be accumulated or set apart, or in the year immediately following the expiry thereof? If so, the details thereof

 

II. APPLICATION OR USE OF INCOME OR PROPERTY FOR THE BENEFIT OF PERSONS REFERRED TO IN SECTION 13(3)

1.

Whether any part of the income or property of the
trust/institution was lent, or continues to be lent, in the previous year to any person referred to in section 13(3) (hereinafter referred to in this Annexure as such person)? If so, give details of the amount, rate of interest charged and the nature of security, if any

 

2.

Whether any land, building or other property of the
trust/institution was made, or continued to be made, available for the use of any such person during the previous year? If so, give details of the property and the amount of rent or compensation charged, if any

 

3.

Whether any payment was made to any such person during the previous year by way of salary, allowance or otherwise? If so, give details

 

4.

Whether the services of the
trust/institution were made available to any such person during the previous year? If so, give details thereof together with remuneration or compensation received, if any

 

5.

Whether any share, security or other property was purchased by or on behalf of the
trust/institution during the previous year from any such person? If so, give details thereof together with the consideration paid

 

6.

Whether any share, security or other property was sold by or on behalf of the trust/institution during the previous year to any such person? If so, give details thereof together with the consideration received

 

7.

Whether any income or property of the
trust/institution was diverted during the previous year in favour of any such person? If so, give details thereof together with the amount of income or value of property so diverted

 

8.

Whether the income or property of the trust/institution was used or applied during the previous year for the benefit of any such person in any other manner? If so, give details

 

 

III. INVESTMENTS HELD AT ANY TIME DURING THE PREVIOUS YEAR(S) IN CONCERNS IN WHICH PERSONS

REFERRED TO IN SECTION 13(3) HAVE A SUBSTANTIAL INTEREST

Sl. No.

Name and address of the concern

Where the concern is a company, number and class of shares held

Nominal value of the investment

Income from the investment

Whether the amount in col. 4 exceeded 5 per cent of the capital of the concern during the previous year-say, Yes/No

1

2

3

4

5

6

Total

 

 

 

Place

Date

Signed

Chartered Accountant

 

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