FORM 10B: Applicability, Deadlines and Filing Procedures

FORM 10B: Applicability, Deadlines and Filing Procedures. Form 10B plays an important role in the compliance framework for charitable and religious institutions under the Income Tax Act, 1961. With recent amendments introduced through the Third Amendment Rules, 2023, the scope and importance of Form 10B have been expanded. It is now an important document for trusts and institutions registered under Section 12A or approved under Section 10(23C) of the Act. These entities are required to furnish an audit report in Form 10B, especially when certain income thresholds are crossed or specific conditions are met. This article provides a complete overview of the applicability, due dates, method of filing, and other important guidelines related to Form 10B.
What is Form 10B of the Income Tax Act?
Form 10B is an audit report that must be filed by trusts, institutions, or NGOs that are either registered under Section 12A or have approval under Section 10(23C) of the Income Tax Act. Initially, this form was applicable only to entities that filed Form 10A to seek registration as a charitable or religious organization. However, with the changes introduced through the Third Amendment Rules of 2023, Form 10B now covers a broader range of institutions, including universities, educational bodies, hospitals, and medical institutions, particularly those whose income exceeds the prescribed limit.
As per the revised rules, if the total income, without claiming exemptions under Sections 11 and 12 or under clause 23C of Section 10, exceeds Rs.5 crore in a financial year, the entity is mandated to file Form 10B. The form must also be filed when the institution receives foreign contributions or applies any part of its income outside India, regardless of its registration status.
Applicability of Form 10B
The filing of Form 10B is mandatory under specific scenarios. Firstly, if a trust or institution’s gross total income exceeds Rs.5 crore in the previous year without availing benefits under Sections 11, 12, or 10(23C), they are required to file the form. This threshold check ensures that large charitable and religious organizations are maintaining financial transparency through a formal audit process.
Secondly, any entity that receives foreign contributions, even if not registered under Section 12A or not approved under Section 10(23C), is required to furnish Form 10B. Additionally, if an institution has used or applied its income outside India during the financial year, it must file Form 10B. These changes are in line with SEBI’s push towards increased scrutiny and accountability of charitable institutions.
Form 10B Due Date
The due date for filing Form 10B is usually set at one month before the due date of the Income Tax Return (ITR). For the Financial Year 2023–24, the last date for submitting Form 10B is 30th September 2024. Since the audit report is a prerequisite for filing ITR in such cases, adhering to the due date is critical to avoid penalties and ensure smooth compliance with income tax laws.
How to Download Form 10B?
Form 10B can be downloaded from the official website of the Income Tax Department. For offline reference, the form is available in PDF format on the same platform. However, it is important to note that the actual filing is done online via the e-filing portal. The download option is typically used by chartered accountants or institutions for review and data compilation before online submission.
When Should Form 10B be Filed?
The requirement to file Form 10B arises when the income of a trust or institution, calculated without applying Sections 11 and 12, exceeds the basic exemption limit or crosses the Rs.5 crore threshold. In such cases, the accounts must be audited by a Chartered Accountant, and a report in Form 10B must be submitted.
It is also necessary to file the form when foreign contributions are received or income is spent abroad. Along with Form 10B, the organization must submit proof of income receipts, income return, and audit reports as per the prescribed format.
How to File Form 10B? Step-by-Step Process
The process of filing Form 10B is done through the Income Tax e-Filing portal, and the Chartered Accountant (CA) plays a crucial role in this. Below are the steps to follow:
1. The CA must log in to the Income Tax e-filing portal using their credentials.
2. Under the 'Pending Actions' tab, select 'Worklist' to view forms assigned by the taxpayer.
3. The CA can accept or reject the form. On accepting, a confirmation message appears.
4. After acceptance, click on the 'File Form' option from the worklist.
5. Review and verify all pre-filled information in Form 10B.
6. Click on 'Continue' and then 'Let’s Get Started' to begin filling details section-wise.
7. After entering all required data, click on ‘Preview’ to check the form.
8. Confirm all the details and proceed to 'e-Verify' the form.
9. Verification must be done using a Digital Signature Certificate (DSC).
10. Once submitted, a message stating 'Submitted Successfully to Taxpayer' appears, followed by an SMS and email notification to the taxpayer for acceptance or rejection.
Guidelines for Filing Form 10B
Before filing Form 10B, ensure the following conditions are fulfilled:
• Both CA and taxpayer must be registered users on the Income Tax portal.
• Taxpayer must add the CA through the ‘My CA’ option.
• PAN of both CA and taxpayer must be active and valid.
• CA must possess an active DSC.
• The trust or institution must be either registered or applied for registration under Section 12A or 10(23C).
Difference Between Form 10B and Form 10BB

Criteria
Form 10B
Form 10BB

Applicable Rule
Rule 17B
Rule 16CC

Purpose
For auditing charitable and religious trusts

For educational, medical institutions below limit

Yearly Income Limit
Income exceeds Rs.5 crore
Income is below Rs.5 crore

Foreign Contribution
Allowed
Not allowed

Income Used Outside India
Permitted
Not applicable

Conclusion
Filing Form 10B is an important compliance requirement for charitable, educational, and religious institutions that fall under the ambit of Section 12A or 10(23C). With the amendments introduced in 2023, its scope has expanded, demanding stricter adherence to filing timelines and documentation accuracy. Institutions must coordinate closely with their Chartered Accountants to ensure that the audit report is filed correctly and within the prescribed due date. Staying compliant with Form 10B requirements not only helps in avoiding legal complications but also strengthens the transparency and credibility of the organization in the eyes of stakeholders and regulators.
If you need any support you can connect with our expert through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. What types of organizations are required to file Form 10B, and what are the specific criteria for its applicability?
Ans. Form 10B is applicable to charitable or religious trusts and institutions that are registered under Section 12A of the Income Tax Act or have applied for registration using Form 10A. Additionally, the organization must file Form 10B if its total income, before considering exemptions under Sections 11 and 12, exceeds the maximum amount not chargeable to income tax in a given financial year. 
Q2. What is the deadline for filing Form 10B, and what are the potential consequences of missing this deadline?
Ans. The deadline for filing Form 10B is one month prior to the due date for furnishing the return of income under Section 139(1). For example, if the income tax return is due on October 31st, Form 10B must be filed by September 30th. Failure to submit Form 10B on time can result in the denial of tax exemptions and potential penalties. 
Q3. How can I download Form 10B, and what steps should I follow to ensure I have the correct version?
Ans. You can download Form 10B from the official Income Tax e-Filing portal (https://www.incometax.gov.in). Go to the "Downloads" section, select "Income Tax Forms," and locate Form 10B for the relevant assessment year. Ensure you download the correct version applicable to the specific assessment year to avoid filing discrepancies. 
Q4. What is the process for filing Form 10B, and what are the roles of the taxpayer and the Chartered Accountant (CA) in this process?
Ans. The filing process involves nominating a CA through the e-Filing portal, where the CA then accesses, fills, and submits Form 10B. After submission, the taxpayer must log in to their e-Filing account to review and accept the report. The CA conducts the audit and files the form, while the taxpayer provides the necessary information and approves the submission. 
Q5. Why is Form 10B crucial for charitable and religious organizations in India, and what purpose does it serve in the taxation system?
Ans. Form 10B is crucial for maintaining the financial transparency and compliance of charitable and religious organizations with the Income Tax Act. It serves as an audit report that verifies the organization's financial records and ensures adherence to tax regulations. This helps these entities continue to avail themselves of tax exemptions by providing a clear and auditable trail of their financial activities.

Form 10B plays an important role in the compliance framework for charitable and religious institutions under the Income Tax Act, 1961. With recent amendments introduced through the Third Amendment Rules, 2023, the scope and importance of Form 10B have been expanded. It is now an important document for trusts and institutions registered under Section 12A or approved under Section 10(23C) of the Act. These entities are required to furnish an audit report in Form 10B, especially when certain income thresholds are crossed or specific conditions are met. This article provides a complete overview of the applicability, due dates, method of filing, and other important guidelines related to Form 10B.

What is Form 10B of the Income Tax Act?

Form 10B is an audit report that must be filed by trusts, institutions, or NGOs that are either registered under Section 12A or have approval under Section 10(23C) of the Income Tax Act. Initially, this form was applicable only to entities that filed Form 10A to seek registration as a charitable or religious organization. However, with the changes introduced through the Third Amendment Rules of 2023, Form 10B now covers a broader range of institutions, including universities, educational bodies, hospitals, and medical institutions, particularly those whose income exceeds the prescribed limit.

As per the revised rules, if the total income, without claiming exemptions under Sections 11 and 12 or under clause 23C of Section 10, exceeds Rs.5 crore in a financial year, the entity is mandated to file Form 10B. The form must also be filed when the institution receives foreign contributions or applies any part of its income outside India, regardless of its registration status.

Applicability of Form 10B

The filing of Form 10B is mandatory under specific scenarios. Firstly, if a trust or institution’s gross total income exceeds Rs.5 crore in the previous year without availing benefits under Sections 11, 12, or 10(23C), they are required to file the form. This threshold check ensures that large charitable and religious organizations are maintaining financial transparency through a formal audit process.

Secondly, any entity that receives foreign contributions, even if not registered under Section 12A or not approved under Section 10(23C), is required to furnish Form 10B. Additionally, if an institution has used or applied its income outside India during the financial year, it must file Form 10B. These changes are in line with SEBI’s push towards increased scrutiny and accountability of charitable institutions.

Form 10B Due Date

The due date for filing Form 10B is usually set at one month before the due date of the Income Tax Return (ITR). For the Financial Year 2023–24, the last date for submitting Form 10B is 30th September 2024. Since the audit report is a prerequisite for filing ITR in such cases, adhering to the due date is critical to avoid penalties and ensure smooth compliance with income tax laws.

How to Download Form 10B?

Form 10B can be downloaded from the official website of the Income Tax Department. For offline reference, the form is available in PDF format on the same platform. However, it is important to note that the actual filing is done online via the e-filing portal. The download option is typically used by chartered accountants or institutions for review and data compilation before online submission.

When Should Form 10B be Filed?

The requirement to file Form 10B arises when the income of a trust or institution, calculated without applying Sections 11 and 12, exceeds the basic exemption limit or crosses the Rs.5 crore threshold. In such cases, the accounts must be audited by a Chartered Accountant, and a report in Form 10B must be submitted.

It is also necessary to file the form when foreign contributions are received or income is spent abroad. Along with Form 10B, the organization must submit proof of income receipts, income return, and audit reports as per the prescribed format.

How to File Form 10B? Step-by-Step Process

The process of filing Form 10B is done through the Income Tax e-Filing portal, and the Chartered Accountant (CA) plays a crucial role in this. Below are the steps to follow:

1. The CA must log in to the Income Tax e-filing portal using their credentials.

2. Under the 'Pending Actions' tab, select 'Worklist' to view forms assigned by the taxpayer.

3. The CA can accept or reject the form. On accepting, a confirmation message appears.

4. After acceptance, click on the 'File Form' option from the worklist.

5. Review and verify all pre-filled information in Form 10B.

6. Click on 'Continue' and then 'Let’s Get Started' to begin filling details section-wise.

7. After entering all required data, click on ‘Preview’ to check the form.

8. Confirm all the details and proceed to 'e-Verify' the form.

9. Verification must be done using a Digital Signature Certificate (DSC).

10. Once submitted, a message stating 'Submitted Successfully to Taxpayer' appears, followed by an SMS and email notification to the taxpayer for acceptance or rejection.

Guidelines for Filing Form 10B

Before filing Form 10B, ensure the following conditions are fulfilled:

• Both CA and taxpayer must be registered users on the Income Tax portal.

• Taxpayer must add the CA through the ‘My CA’ option.

• PAN of both CA and taxpayer must be active and valid.

• CA must possess an active DSC.

• The trust or institution must be either registered or applied for registration under Section 12A or 10(23C).

Difference Between Form 10B and Form 10BB

Criteria	Form 10B	Form 10BB
Applicable Rule	Rule 17B	Rule 16CC
Purpose	For auditing charitable and religious trusts	For educational, medical institutions below limit
Yearly Income Limit	Income exceeds Rs.5 crore	Income is below Rs.5 crore
Foreign Contribution	Allowed	Not allowed
Income Used Outside India	Permitted	Not applicable

Conclusion

Filing Form 10B is an important compliance requirement for charitable, educational, and religious institutions that fall under the ambit of Section 12A or 10(23C). With the amendments introduced in 2023, its scope has expanded, demanding stricter adherence to filing timelines and documentation accuracy. Institutions must coordinate closely with their Chartered Accountants to ensure that the audit report is filed correctly and within the prescribed due date. Staying compliant with Form 10B requirements not only helps in avoiding legal complications but also strengthens the transparency and credibility of the organization in the eyes of stakeholders and regulators.

If you need any support you can connect with our expert through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.

FAQs

Q1. What types of organizations are required to file Form 10B, and what are the specific criteria for its applicability?

Ans. Form 10B is applicable to charitable or religious trusts and institutions that are registered under Section 12A of the Income Tax Act or have applied for registration using Form 10A. Additionally, the organization must file Form 10B if its total income, before considering exemptions under Sections 11 and 12, exceeds the maximum amount not chargeable to income tax in a given financial year.

Q2. What is the deadline for filing Form 10B, and what are the potential consequences of missing this deadline?

Ans. The deadline for filing Form 10B is one month prior to the due date for furnishing the return of income under Section 139(1). For example, if the income tax return is due on October 31st, Form 10B must be filed by September 30th. Failure to submit Form 10B on time can result in the denial of tax exemptions and potential penalties.

Q3. How can I download Form 10B, and what steps should I follow to ensure I have the correct version?

Ans. You can download Form 10B from the official Income Tax e-Filing portal (https://www.incometax.gov.in). Go to the "Downloads" section, select "Income Tax Forms," and locate Form 10B for the relevant assessment year. Ensure you download the correct version applicable to the specific assessment year to avoid filing discrepancies.

Q4. What is the process for filing Form 10B, and what are the roles of the taxpayer and the Chartered Accountant (CA) in this process?

Ans. The filing process involves nominating a CA through the e-Filing portal, where the CA then accesses, fills, and submits Form 10B. After submission, the taxpayer must log in to their e-Filing account to review and accept the report. The CA conducts the audit and files the form, while the taxpayer provides the necessary information and approves the submission.

Q5. Why is Form 10B crucial for charitable and religious organizations in India, and what purpose does it serve in the taxation system?

Ans. Form 10B is crucial for maintaining the financial transparency and compliance of charitable and religious organizations with the Income Tax Act. It serves as an audit report that verifies the organization's financial records and ensures adherence to tax regulations. This helps these entities continue to avail themselves of tax exemptions by providing a clear and auditable trail of their financial activities.