CBDT has vide Circular No. 17/2023 Dt. 09.10.2023 provided clarification in relation to data which needs to be feeded in Form 10B and Form 10BB in relation to substantial contribution from related parties.
Audit report in the case of a fund or trust or institution or any university or other educational institution or any hospital or other medical institution, under clause (b) of the tenth proviso to clause (23C) of section 10, or sub-clause (ii) of clause (b) of sub-section (1) of section 12A of the Income-tax Act, 1961 (the Act), as the case may be, is required to be furnished in Form No. 10B/ Form No. 10BB.
2. Representations have been received regarding difficulties in filling details of persons who have made a ‘substantial contribution to the trust or institution’, that is to say, any person whose total contribution up to the end of the relevant previous year exceeds fifty thousand rupees (as referred to in section 13(3)(b) of the Act).
3. The matter has been examined with reference to the issue raised in paragraph 2 and it is hereby stated that for the purposes of providing details in (i) Form No. 10B in the Annexure, in row 41; and (ii) Form No. 10BB in the Annexure, in row 28, for the assessment year 2023-24:
(a) the aforesaid details (that is, of persons making substantial contribution) may be given with respect to those persons whose total contribution during the previous year exceeds fifty thousand rupees;
(b) details of relatives of such person, as referred to In (a) above may be provided, if available.
(c) details of concerns in which such person, as referred to in (a) above, has substantial interest may be provided, if available.
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ICAI has also release technical guide on Form 10B and Form 10BB. To read the same CLICK ME.
This is a welcoming clarification from Income tax department. Although, department has clarified about details of person who are making substantial contribution. However, people are facing issues in submitting such details in Form 10BB as this column/ annexure is compulsory in Form 10BB and hence assessee has to atleast mention details of all trustee whether or not any transaction has been done. Whereas, assessee should be asked to fill this column only if there is any transaction.
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