Clarification On Audit Report Requirements for ‘Substantial Contributors’ In AY 2023-24: CBDT

The Central Board of Direct Taxes (CBDT) has issued the clarification on Audit Report Requirements under Section 119 of the Income-tax Act, 1961 for ‘Substantial Contributors’ in AY 2023-24.

It focuses on providing details of ‘substantial contributors’ in Form No. 10B or 10BB for the assessment year 2023-24. The circular states that details should include contributors whose yearly contribution exceeds Rs. 50,000, along with information on their relatives and related concerns if available.

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, as the case may be, is required to be furnished in Form No. 10B/Form No. 10BB.

The Board has received representations regarding difficulties in filling in 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 Rs. 50,000.

The matter was examined with reference to the issue raised. It was stated that for the purposes of providing details in Form No. 10B and Form No. 10BB for the assessment year 2023-24, various details need to be filled. Firstly, the details (that is, of persons making substantial contributions) may be given with respect to those persons whose total contribution during the previous year exceeds fifty thousand rupees. Secondly, details of relatives of such a person may be provided, if available. Lastly, details of concerns in which such a person has a substantial interest may be provided, if available.

Circular No. 17/2023

Date: October 09, 2023

Click Here To Read The Circular