Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
When a trust needs it
A charitable or religious trust registered under Section 12AB must get its accounts audited and file the audit report in Form 10B (or 10BB, depending on income and category) when its total income, before exemption, exceeds the basic exemption limit. It is the audit backbone of the trust’s annual return.
What it certifies
The chartered accountant in Form 10B reports on the trust’s income and application, whether at least 85% of income was applied to charitable purposes, any accumulation and its compliance, dealings with specified persons, and other conditions of Sections 11–13. A clean 10B supports the trust’s exemption; lapses can jeopardise it. Confirm whether 10B or 10BB applies and the current due date.
Why timing matters — an example
Example: a trust with ₹40 lakh income must file Form 10B before its income-tax return; filing the audit report late can lead to the exemption being denied and the whole income taxed. So the audit must be planned well ahead of the return deadline. Trust audit references Section 12A(1)(b) read with Rule 17B. Our team can audit the trust and file Form 10B on time.