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1. What is Form 10B?

Form 10B is the audit report of the charitable institutions prepared by the auditor. This form has derived its authority from Rule 17B Sec. 12A(b) of the Income-tax Act, 1961 used by charitable trusts. The main aim of filing this form is that the accountant who is auditing the books of charitable institutions has to satisfy themselves of the genuineness of the claim for exemption under section 11 and also whether the institution has complied with all the requirements prescribed by the statute. 

2. Why is Form 10B used? 

A. This form is required to be submitted if the “total income” of the institution for the relevant year exceeds the maximum amount which is not chargeable to income tax 

B. When the donations received by an institution whose income are exempt under sections 11 and 12 or clause (23) or clause (23AA) or clause (23C) of section 10 of the Act are eligible for deduction under section 80G provided the institution is approved by the Director-General (exemptions)/ Commissioner of Income-tax under section 80G(5)(vi), this form is filed.

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