The Central Board of Direct Taxes (CBDT) has drafted a notice to alter a segment of the income tax rules and change the tax audit report for charitable trusts, raising the obligation of the evaluators fundamentally.
The direct tax body has asked for inputs from the general public and the stakeholders on the notification. According to the draft, there are various other disclosure requirements necessary in the annexure to Form 10B.
After the changes, the auditors have to certify that the information provided in the annexure are true and correct.
“It further provides that the person in receipt of the said income, furnishes along with the Return of Income for the relevant Assessment Year, the Report of such Audit in the Prescribed Form duly signed and verified by such accountant and setting forth such particulars as may be prescribed,” the release said.
The new statement of particulars requires detailed information about the charitable trusts, making sure that the trust is completely compliant with the applicable procedures and processes.