Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The income trigger
A trust registered under Section 12AB must get a tax audit and file Form 10B (or 10BB) when its total income, computed before the Section 11/12 exemption, exceeds the basic exemption limit. So you test income before applying the exemption — a trust that spends almost everything can still cross the threshold and need the audit.
10B vs 10BB and timing
Whether Form 10B or 10BB applies depends on the trust’s income level and category (e.g. foreign contributions, larger income). Crucially, the report must be filed before the income-tax return’s due date — late filing can cost the exemption. Confirm which form applies and the current due date.
A worked example
Example: a trust with ₹40 lakh of gross receipts (before exemption) crosses the basic exemption, so it must complete its audit and file Form 10B ahead of its return. A tiny trust below the limit need not. Planning the audit early protects the exemption; a missed deadline can make the whole income taxable. Trust audit references Section 12A(1)(b) read with Rule 17B. Our team can audit the trust and file Form 10B.