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Form 10BB – Audit Report for Trusts with Income up to ₹5 Crore | NDS Avla

Form 10BB – Simplified Audit Report for Charitable Trusts with Income Up to ₹5 Crore

Form 10BB CA Certification, Trust Income Audit & ITR-7 Filing for Registered Charitable Trusts

Form 10BB is the simplified audit report prescribed for charitable and religious trusts and institutions registered under Section 12A/12AA/12AB whose total income (before exemption) does not exceed ₹5 crore in the financial year. It serves the same purpose as Form 10B (which applies to larger trusts) but with a simpler format designed for smaller trusts. The form must be certified by a practicing Chartered Accountant and uploaded on the Income Tax e-filing portal before filing the trust's ITR-7.

Despite its simplified format, Form 10BB covers all essential compliance checks — income and application verification, accumulation under Section 11(2), corpus fund accounting, investment compliance under Section 11(5), and registration conditions. Our services for smaller trusts include complete bookkeeping, Form 10BB audit, Form 10BD donor reporting, and ITR-7 filing — providing end-to-end compliance support so trustee boards can focus on their charitable mission rather than compliance deadlines.

Our Form 10BB Services

Trust Books of Accounts Audit

Audit of the trust's receipts and payment account, income and expenditure account, and balance sheet — with verification of all income sources, grants, donations, and expenditures against supporting documentation.

Application of Income Verification

Verification that at least 85% of income has been applied for the trust's stated charitable or religious objects — and if not, advisory on filing Form 10 for accumulation under Section 11(2).

Donation & Corpus Fund Review

Separate accounting verification of corpus donations vs. general donations — ensuring corpus is not counted as income application and is maintained in compliant investments under Section 11(5).

Section 11(5) Investment Compliance

Verification that all trust funds are invested in specified modes — government securities, scheduled bank FDs, post office savings, RBI bonds — and identification of non-compliant investments for correction.

Form 10BB Upload & ITR-7 Filing

Complete Form 10BB preparation, CA digital signature, upload on Income Tax portal, and filing of ITR-7 with all required schedules including voluntary contributions and accumulation details.

Annual Trust Compliance Calendar

Setting up and managing the complete annual compliance calendar for the trust — Form 10BB, ITR-7, TDS returns (if applicable), Form 10BD, and Charity Commissioner submissions.

Frequently Asked Questions

Is Form 10BB mandatory for all Section 12A trusts?
Form 10BB is mandatory for all trusts and institutions registered under Section 12A/12AA/12AB whose total income (before claiming exemption under Section 11/12) exceeds the basic exemption limit (currently ₹2.5 lakh). The form must be prepared and certified by a Chartered Accountant in practice and uploaded on the Income Tax e-filing portal before the due date (September 30). Trusts whose income exceeds ₹5 crore must file the more detailed Form 10B instead of Form 10BB. Trusts below the basic exemption limit are technically not required to file a return, but voluntary compliance is advisable.
What is the due date for filing Form 10BB?
The due date for filing Form 10BB is September 30 of the assessment year (i.e., September 30, 2025 for FY 2024-25). This is the same as the tax audit deadline under Section 44AB. The Form 10BB must be uploaded before the trust files its ITR-7, so the practical deadline for Form 10BB is slightly earlier — as it must be certified and uploaded before the ITR-7 can be submitted. Late filing of Form 10BB can result in denial of Section 11 exemption and penalty under Section 271B.
What is the difference between voluntary contributions subject to tax and those exempt?
Voluntary contributions (donations) received by a registered trust fall into two categories: corpus donations and general donations. Corpus donations — those specifically directed by the donor for inclusion in the corpus of the trust — are fully exempt from income tax regardless of application and are not counted as income for the 85% application rule. General donations are treated as income of the trust and must be applied at 85% for charitable purposes to maintain exemption under Section 11. Anonymous donations above ₹1 lakh or 5% of total donations (whichever is higher) are taxable at 30% irrespective of registration. Form 10BB requires verification and disclosure of both types.
Can a trust lose its Section 12A exemption due to non-filing of Form 10BB?
Yes. Failure to file Form 10BB (or Form 10B, as applicable) by the due date can result in the trust's exemption under Section 11 being denied for that year, making the entire income taxable. The Assessing Officer may also refer to the trust's failure to comply with audit requirements as a ground for cancelling the Section 12AB registration in egregious cases. However, the Income Tax Act allows for condonation of delay in filing the audit report for reasonable cause — trusts must apply for condonation proactively and provide documented reasons for any delay.

Running a Charitable Trust? Form 10BB Compliance Made Simple.

Our CA team conducts the trust audit, certifies Form 10BB, uploads it to the Income Tax portal, and files your ITR-7 — all before the September 30 deadline, so your exemption is fully protected.

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F.A.Q.

It includes all yearly requirements such as filings, actuarial valuation, audits, and maintaining proper records.

Yes, regular compliance is required to maintain approval and tax benefits.

It helps determine the exact gratuity liability and required funding for the trust.

 

Yes, trusts must file necessary returns and maintain financial records as per regulations.

Non-compliance can lead to penalties, loss of tax benefits, or cancellation of approval.

Trustees and the employer are responsible for ensuring proper compliance.