SUMMARY OF CIRCULAR No. 06/2023 ISSUED BY CBDT


*SUMMARY OF CIRCULAR No. 06/2023 ISSUED BY CBDT - BENEFITS TO CHARITABLE TRUSTS AND SOCIETIES*


All trusts approved/ registered under section 10(23C)(iv)/(v)/(vi)/(via) or section 12A/12AA as on 01.04.2021 were required to apply for re-approval by extended timeline of 25.11.2022. 


Those who failed were covered by the Finance Act, 2023 from 1-4-2023 under the clutches of section 115TD (Dealing with Exit Tax). 


1. Where Form No. 10A was not filed by the extended date of 25.11.2022 by the trusts approved/ registered as above then they can now file the same by 30.09.2023.


Further, where such Trusts have furnished Form No. 10A after above date seeking provisional registration/approval, the relevant functionality on the e-filing portal may be used for surrendering the Form No. 10A seeking provisional registration/approval and such trusts can make a new application in Form No. 10A for registration/ approval within the extended period up to 30.09.2023.


2. Where the new trusts who were provisionally approved/ registered and were required to file form no. 10AB for Final Approval but failed to file such form by specified period of 6 months from date of commencement of activities and such date has expired then they can file Form No. 10AB within the extended period up to 30.09.2023.3. 


Where such application is made by the said date and registration/approval is granted then exit tax as per section 115TD as amended by the Finance Act, 2023 from 1-4-2023 will not apply.


3. In cases where the trust had already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such app lication, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date, the trust may furnish a fresh application in Form No. 10AB within the extended time.


4. The due date for furnishing of statement of donation in Form No. 10BD and the certificate of donation in Form No. 10BE in respect of the donations received during the financial year 2022-23 has been extended to 30.06.2023.


5. In case of trusts, funds or institutions seeking provisional approval or provisional registration as referred to above, the said provisional approval or provisional registration shall be effective from the assessment year relevant to the previous year in which the application is made and shall be valid for a period of three assessment years.


6. From the Assessment Year 2023-24, statement of accumulation in Form No. 10 and Form No. 9A is required to be furnished at least two months prior to the due date of furnishing return of income so that it may be taken into account while auditing the books of account. 


However, the accumulation/deemed application shall not be denied to a trust as long as the statement of accumulation/deemed application is furnished on or before the due date of furnishing the return as provided in sub-section ( 1) of section 139 of the Act.


7. Form No. 10B and Form No. 10BB (Audit report in case of charitable trusts) requires the

auditor to bifurcate certain payments or application in electronic modes and non-electronic modes.


It is clarified that for the purposes of Form No. 10B and Form No. 10BB electronic

modes includes and are in addition to the account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account.

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