CBDT Issues Draft Notification for Amendment of Form
No 10B of the Income Tax Rules, 1962
Section 12A of the Income-tax Act, 1961 (the Act) provides for
conditions for applicability of Sections 11 and 12 of the Act. One such condition
under clause (b) of sub-section (1) thereof is that where the total income of the
trust or institution computed without giving effect to Section 11 and 12 exceeds
the maximum amount not chargeable to Income-Tax in any previous year, its accounts
for that year have been audited by an accountant as defined in the Explanation
below sub-section (2) of Section 288.
It further provides that the person in receipt of the said income,
furnishes along with the Return of Income for the relevant Assessment Year, the
Report of such Audit in the Prescribed Form duly signed and verified by such accountant
and setting forth such particulars as may be prescribed.
Accordingly, vide Income-tax (2nd Amendment) Rules,
1973 w.e.f. April 1, 1973 Rule 17B and Form 10B were inserted in the Income-tax
Rules, 1962 (the Rules) for this purpose. Rule 17B of the Rules provide that said
Report of Audit of the accounts of a trust or institution shall be in Form No. 10B.
The Form No 10B besides providing the Audit Report, also provides for filing of
“Statement of particulars” as Annexure.
As the Rule and Form were notified long ago, there is a need to
rationalise them to align with the requirements of the present times.
In view of the above, the Rule and Form are proposed to be amended
by way of substituting-
(a) Rule 17B with a new Rule
17B; and
(b) Form No 10B with a new
Form No 10B.
The Draft Notification proposing the above amendments has been
formulated and uploaded on www.incometaxindia.gov.in for inputs from stakeholders and general public. The inputs on
the Draft Rules may be sent electronically at the email address, niraj.kumar82@nic.in, latest by June 5, 2019.