The Central Board of Direct Taxes (CBDT) has given more time to trusts and institutions — that have submitted the wrong forms to claim income tax exemption — to rectify their error and submit their audit reports with the forms that are applicable for the purpose.

“Those trusts/institutions which have furnished audit report on or before October 31, 2023 in Form No. 10B where Form No. 10BB was applicable and vice-versa, must furnish the audit report in the applicable Form No. 10B / 10BB for the AY 2023-24, on or before March 31, 2024,” the CBDT said in a statement.

Narayan Jain, tax advocate and president of the All India Federation of Tax Practitioners, said: “This is a welcome gesture of the CBDT and the extention of date will mitigate difficulties of many relevant trusts and institutions. However, the extension should be granted at least till May 31 to be practical for compliance.”

Amita Jivrajani, director, Nangia Andersen India, said: “The tax compliance arena for charitable institutions has been muddled with multiple forms and timelines.”

“This overhaul in the format of audit report and criteria’s to furnish the same resulted in widespread confusion among taxpayers. One of the concerns stemming out of an incorrect selection of the audit report is the denial of exemption under Section 11 and Section 12 of the IT Act, 1961.”