Form 10BB Audit Report for Section 10(23C) Institutions

Form 10BB is one of two common audit reports that charitable and religious organisations use to preserve their income-tax exemption. Since the forms were re-notified under Rule 16CC and Rule 17B of the Income-tax Rules 1962 with effect from 1 April 2023, the same pair of forms applies to entities registered under section 12AB and to those approved under section 10(23C). Form 10BB is the shorter report for smaller entities; Form 10B is the larger report reserved for entities that cross the Rs 5 crore threshold or that receive foreign contribution or apply income outside India.

The full title of Form No. 10BB is the audit report under section 10(23C) of the Income-tax Act 1961 in the case of any fund, trust, institution, university or other educational institution, or any hospital or other medical institution referred to in sub-clause (iv), (v), (vi) or (via) of section 10(23C). Getting the choice between Form 10B and Form 10BB right matters: filing the incorrect form can be treated as a defective or invalid audit report and can jeopardise the exemption under sections 11 and 12 or under section 10(23C).

Patron Accounting LLP helps trusts, funds, educational institutions and medical institutions determine applicability correctly, complete the chartered accountant audit, and file Form 10BB before the specified date. Verify the framework directly on the Income Tax India e-Filing Portal and refer to auditing standards at the Institute of Chartered Accountants of India.

Form 10BB applies to a broad range of exempt organisations, provided they meet all three conditions (income up to Rs 5 crore before exemption, no foreign contribution, no income applied outside India). The auditee categories include:

• Universities and educational institutions approved under section 10(23C)(vi): A university or educational institution approved under sub-clause (vi) must have its accounts audited by a chartered accountant. Where the three conditions are met, the audit report is furnished in Form 10BB; otherwise Form 10B applies.
• Hospitals and other medical institutions approved under section 10(23C)(via): A hospital or other medical institution approved under sub-clause (via) obtains a CA audit and files Form 10BB when total income before exemption is Rs 5 crore or less with no foreign contribution and no income applied outside India.
• Smaller educational institutions under section 10(23C)(iiiad): Educational institutions with aggregate annual receipts up to Rs 5 crore are exempt without prior approval. Where an audit obligation is triggered, the report is furnished in Form 10BB.
• Smaller medical institutions under section 10(23C)(iiiae): Medical institutions and hospitals with aggregate annual receipts up to Rs 5 crore are covered without prior approval, filing Form 10BB where audit applies.
• Charitable and religious trusts registered under section 12A / 12AB: Since AY 2023-24 the common forms apply to 12AB entities too. A 12A/12AB trust with total income before exemption up to Rs 5 crore, no foreign contribution and no income applied outside India files Form 10BB rather than Form 10B.
• Funds and institutions referred to in sections 11 and 12: Any fund, institution or trust referred to in section 10(23C) or in sections 11 and 12 falls within the Form 10BB auditee universe when the conditions are met.

When Form 10BB does NOT apply: If total income before exemption exceeds Rs 5 crore, or if the entity received any foreign contribution during the previous year, or if any part of income was applied outside India during the previous year, then Form 10B is mandatory instead - even for an otherwise small institution. Larger educational and medical institutions must obtain approval under sub-clause (vi) or (via) and audit accordingly.

You can confirm the applicable framework on the Income Tax India e-Filing Portal. For trusts still completing their exemption registration, our 12A registration service establishes the base registration, and our section 11-12-13 income application and accumulation page explains how exempt income must be applied.

From AY 2023-24 both forms are common to 12AB and 10(23C) entities. The choice turns entirely on three tests. The table summarises how each factor decides the form.

For entities that fall on the Form 10B side of the line, see our companion page on the Form 10B audit report for a section 12A trust. If you are unsure which form applies in a borderline year, a CA review of income, foreign contribution and outbound application is advisable each year.

To complete the audit and file Form 10BB efficiently, the following should be ready. Patron coordinates collation and requests anything missing.

• PAN of the trust, fund or institution
• Registration certificate under section 12A / 12AB, or approval order under section 10(23C) sub-clause (iv), (v), (vi) or (via)
• Books of account - cash book, ledger, receipts and payments account
• Income and expenditure account and balance sheet for the previous year
• Details of total income computed before giving effect to the exemption (to test the Rs 5 crore threshold)
• Details of application of income during the year and any accumulation under section 11(2)
• Confirmation of whether any foreign contribution was received during the year (and FCRA registration, if applicable)
• Confirmation of whether any income was applied outside India during the year
• Donation receipts and corpus donation records, with donor details where required
• Details of any specified person transactions relevant under section 13
• Bank statements for all accounts of the entity
• Active DSC or EVC of the trustee or authorised signatory for accepting the report
• Previous year audit report and acknowledgements, where available

Portal filing is done at the Income Tax India e-Filing Portal. Institutions in the healthcare sector may also review our NGO services for healthcare for wider compliance support.

Per the incometax.gov.in Form 10BB FAQ, Form 10BB must be filed before the specified date referred to in section 44AB - that is, one month before the due date for filing the return of income under section 139(1). For an institution this is generally 30 September of the assessment year, with the ITR then due by 31 October.

All fees and charges listed are indicative only and do not constitute a binding offer. The exact fee depends on the volume of transactions, the number of bank accounts and the complexity of the application and accumulation of income. Contact us for a detailed quote.

Get a free Form 10BB applicability check - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Form 10BB filing sits within a wider set of exemption-compliance services for charitable trusts, funds and institutions. Related pages help across registration, income application and the companion audit form:

• Form 10B Audit Report for a Section 12A Trust - the larger audit report for entities crossing the Rs 5 crore threshold or receiving foreign contribution.
• 12A Registration - base exemption registration for charitable and religious trusts and institutions.
• Section 11-12-13 Income Application and Accumulation - how exempt income must be applied and accumulated.
• NGO Services for Healthcare - compliance support tailored to hospitals and medical institutions.

Confirm the framework on the Income Tax India e-Filing Portal and refer to auditing standards at the Institute of Chartered Accountants of India.