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Charitable Trusts and Institutions, Universities and Educational Institutions, Hospitals and Medical Institutions registered u/s 10(23C), get an Opportunity for Filing Delayed Audit Reports

Written by  2020-11-05   445

Charitable Trusts and Institutions, Universities and Educational Institutions, Hospitals and Medical Institutions registered u/s 10(23C), get an Opportunity for Filing Delayed Audit Reports

The Charitable Trusts and Institutions, Universities and Educational Institutions, Hospitals and Medical Institutions registered u/s 10(23C) of the Income Tax Act, 1961, (the Act), are entitled for exemption from Income Tax, subject to the application of atleast 85% of their receipts/income towards the objectives for which these institutions have been established. 

Where the total income of such institutions, exceeds the basic exemption limit, i.e. Rs. 2,50,000/- in any previous year, the accounts of such institutions are required to be audited by a qualified Chartered Accountant, and the Audit Report in the prescribed Form No. 10BB is required to be furnished electronically before filing the e-return of income. 

The failure to furnish such Audit Report in Form 10BB along with the e-return results in disentitlement of such entity from claiming exemption under section 10(23C) of the Act.

The Apex Body CBDT, on consideration of Representations received from such institutions, requesting for the Condonation of Delay in furnishing the Audit Report in Form 10BB, in exercise of the powers conferred under section 119(2)(b) of the Act, has issued Circular No. 19/2020 dated 3.11.2020, providing as under:

(i) In all the cases of belated applications in filing of Form No. 10BB for years prior to AY. 2018-19, the Commissioners of Income-tax are authorized to admit such applications for condonation of delay u/s 119(2)(b) of the Act. All such applications shall be disposed of by 31.03.2021.

(ii) where there is delay of upto 365 days in filing Form No. 10BB for Assessment Year 2018-19 or for any subsequent Assessment Years, the Commissioners of Income-tax are hereby authorized to admit such belated applications of condonation of delay under section 119(2) of the Income-tax Act, 1961 and decide on merits.

The Commissioners while entertaining such applications regarding condoning the delay in filing of Form No. 10BB, shall satisfy themselves that the applicant was prevented by reasonable cause from filing such application within the stipulated time.

For ready reference of our Readers, the said CBDT Circular No. 19/2020 dated 3.11.2020, is being enclosed as per the attached pdf file.

For seamless, painless, hasslefree and cost-effective expert professional e-services in relation to the online registration of institutions u/s 12A/12AB/10(23C)/80G, and all accounts, audit (Form 10BB) and tax-assessments, appeals and rectifications related compliances, simply download TaxAaram Mobile App from Playstore or visit taxaaram.com/charitable-trust-and-planning

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