Karnataka State CA Association writes CBDT Chairman on Delay in availability of Form 10B/10BB and Issues in Filing

The Karnataka State Chartered Accountants Association (KSCA) has represented the delay in availability of Form 10B/10BB and the issues in filing the particulars of such form before the Chairman of the Central Board of Direct Taxes (CBDT).

In the past, the association has written many times populating various issues, challenges and hardships being faced by taxpayers and Chartered Accountants and suggesting possible solutions on the same.

Now, the department is seeking consideration on issues regarding the delayed availability/release of income tax forms 10B/ 10BB for the Financial Year 2022-23 and insertion of several new clauses which is causing hardship to the Taxpayers and Chartered Accountants.

Sections 10 (23C) and 12A of the Income Tax Act, 1961 mandate specific funds, trusts, institutions, universities, educational institutions, hospitals, and medical institutions to undergo a financial audit. The designated forms for this process, as per rules 16CC and 17B of the Income Tax Rules, 1962, are Form 10B and Form 10BB.

The association has listed the issues or challenges faced:

1. Late release of utilities for filing the Form IOB/IOBB
2. Comprehensive and Vast Form
3. Difficulty in bifurcating the total application of income into electronic and non-electronic modes
4. Certification of adequacy of reasonableness of expenditure
5. Reporting of contributions received from specified person
6. Third Party Software
7. E-schema

The association also sought the attention to the High Court judgment in the case of Avinash Gupta vs. Union of India & Ors. To summarise, the Delhi High Court has directed the Board to ensure that the forms prescribed for the Audit Report are made available as of the 1st of April of the assessment year unless there is a valid reason therefore and which should be recorded in writing by the Board.

Unfortunately, Utilities in respect of Form 10B/10BB have been made available on the 24th August 2023 resulting in a delay of around 145 days from the beginning Of the assessment year and the e-schema for submitting such forms is not yet available.

The CA Association requested that “Taking into consideration the hardships caused, and in the backdrop of the High Court order, we the members of Karnataka State Chartered Accountants Association, on behalf of the entire Chartered Accountants Community and also on behalf of various stake holders in the state of Karnataka, appeal to your good selves to kindly consider our request and defer the applicability of the forms by one year and also release simplified forms from next assessment year onwards, considering the practical difficulties faced by various stakeholders.”

Read More: Karnataka State Chartered Accountants Association seeks Clarification from Finance Ministry on admission of Indian Trusts as Partners in LLPs

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