New Delhi: The Revenue Tax Division has allowed condonation of delay in submitting audit reviews by trusts, establishments, universities and hospitals who declare tax exemption. Any funds, trusts, establishments together with instructional and medical universities or hospitals claiming revenue tax exemption should get their accounts audited if their whole revenue of that 12 months exceeds the utmost quantity not chargeable to tax.Revenue tax legislation mandates that such institutes can declare tax advantages obtainable to them solely after furnishing the tax audit report in kind 10BB earlier than the prescribed time.
The Central Board of Direct Taxes (CBDT) in a round mentioned that revenue tax commissioners would admit belated functions in submitting Kind 10BB for years previous to evaluation 12 months (AY) 2018-19 for “condonation of delay”.
“The commissioner, whereas entertaining such functions relating to submitting kind 10 BB, shall fulfill themselves that the applicant was prevented by affordable trigger from submitting such software inside the stipulated time. Additional all such functions shall be disposed of by March 31, 2021,” it mentioned.
Sandeep Jhunjhunwala, Companion, Nangia Andersen LLP, mentioned thus aid to condone delay in submitting audit reviews of trusts, establishments, universities, and hospitals is way anticipated, as comparable aid was given to different charitable organisations originally of 2020.
“Many NGOs weren’t capable of declare any tax advantages obtainable to them from AY 2016-17 for non-furnishing of tax audit reviews. With a deadline to eliminate such condonation functions for earlier years, such organisations can be hopeful to assert their tax advantages for previous years,” he mentioned.
Many organisations had filed a illustration earlier than the tax authorities that they had been unable to file their return together with an audit report and to condone the identical as a way to declare profit and to keep away from litigation.
Taking into account their plea, the authority has issued a round on November 3 for condonation of delay for submitting kind 10BB.
On this regard, now the authorities have supplied aid to such institutes by expediting the method to eliminate such condonation functions.
The authorities have set a deadline to shut all of the functions previous to AY 2018-19 by March 31, 2021 and submit that every one different functions with a delay of one year shall be condoned.
Amit Maheswari, Tax Companion, AKM International, mentioned that kind 10BB audit report is required to be filed electronically together with the return in order that the trusts, establishments, universities, and hospitals stay entitled to the exemption beneath part 10(23C).
“The condonation in submitting of kind 10BB is a aid to such establishments as non-filing on time instantly impacts their exemption standing,” Maheswari added.
