Form 10B Audit Report (AY 2023–24 Onwards): Complete Filing Guide, Utility Download & Instructions

Form 10B is a crucial compliance document for charitable institutions, funds, educational institutions, and hospitals that claim exemption under Section 10(23C) or Section 12A of the Income Tax Act, 1961. It is an audit report required to be submitted by such entities to establish proper maintenance of accounts and compliance with the provisions of the Income Tax Act.

This post provides complete information on who should file Form 10B, how to download and use the latest Excel utility, schema updates, step-by-step filing instructions, and other essential points for Assessment Year (AY) 2023–24 onwards.

What is Form 10B?

Form 10B is an audit report required under clause (b) of the tenth proviso to section 10(23C) and section 12A(1)(b)(ii) of the Income Tax Act, 1961. It applies to entities such as:

• Charitable Trusts and Institutions
• Educational Institutions or Universities
• Hospitals or Medical Institutions
• Funds or Institutions approved under section 10(23C)

This form ensures the entity maintains proper accounts and utilizes its income in line with the objectives and rules of the exemption it claims.

Who is Required to File Form 10B?

The following categories of taxpayers are required to file Form 10B:

• Trusts or institutions registered under section 12AB and whose income exceeds the basic exemption limit without giving effect to sections 11 and 12
• Entities approved under section 10(23C)(iv), (v), (vi), or (via) and having income above the exemption limit
• Educational institutions and medical institutions receiving funding and claiming income tax exemption

These entities must file the audit report in Form 10B before filing their income tax return under ITR-7.

When to File Form 10B?

Form 10B should be filed on or before the due date of filing the income tax return under section 139(1), i.e., generally by 31st October of the relevant assessment year.

Filing it before the deadline is mandatory to claim tax exemption. A delay may result in the denial of exemption or application of penal consequences.

Download Form 10B Offline Utility (Latest Version)

The Income Tax Department provides an Excel-based utility to file Form 10B offline. After preparing and validating the data, the user can generate a JSON file and upload it to the e-Filing portal.

🔗 Download Link: Form 10B Offline Utility ZIP (Version 1.4) – 115 MB

First Release: 24-Aug-2023

Latest Update: 01-Apr-2025

Download Form 10B Schema

The JSON schema provides the format in which the data should be structured for validation and successful submission.

🔗 Download Link: Form 10B Schema ZIP – 34.2 KB

First Release: 08-Sep-2023

Latest Update: 25-Mar-2025

Download Schema Change Document

This document outlines the changes made in schema versions over time. It is especially useful for software developers and auditors handling bulk filing.

🔗 Download Link: Schema Change Document PDF (Version 1.4) – 175 KB

System Requirements for Using the Utility

Before installing and using the Form 10B utility, ensure the following prerequisites are met:

• Operating System: Windows 7 or above (64-bit recommended)
• Microsoft Excel: 2010 and later versions with macros enabled
• Microsoft Edge browser installed and updated
• Latest Java Runtime Environment (JRE) if required by utility
• Extract the ZIP file before launching the utility

Note: Without Microsoft Edge, the utility will not function as expected.

Steps to File Form 10B Using the Excel Utility

Follow the step-by-step procedure to prepare and submit Form 10B using the offline utility:

1. Download the latest utility ZIP file and extract it to a folder on your desktop.
2. Open the Excel-based utility file and enable macros.
3. Select the assessment year and choose to file Form 10B.
4. Enter basic details of the trust or institution, including PAN, registration number, and nature of activity.
5. Fill in audit-related data including income received, utilization of funds, capital assets acquired, and application of income.
6. Use the ‘Validate’ button within the utility to check for any data errors or mandatory fields left blank.
7. After successful validation, click “Generate JSON” to create the file for upload.
8. Login to the e-Filing portal using the credentials of the authorized signatory.
9. Navigate to e-File → Income Tax Forms → File Income Tax Forms and select Form 10B.
10. Upload the generated JSON file and verify using DSC or EVC.

This entire process allows bulk preparation and error-free submission by professionals or institutional tax filers.

Important Sections Covered in Form 10B

Form 10B consists of multiple key schedules and clauses covering various dimensions of the trust or institution's financial operations, such as:

• General information and nature of activities
• Application of income towards charitable or religious purposes
• Utilization of voluntary contributions and corpus
• Details of property held, capital expenditure, depreciation, etc.
• Foreign contributions and donations, if applicable
• Compliance with Section 11, 12, 13, and 10(23C) clauses

The form is designed to ensure transparency and traceability of financial records in exempt organizations.

Penalties for Non-Filing or Late Filing

Filing Form 10B on time is mandatory. If an eligible entity fails to submit the audit report within the prescribed due date:

• Exemption under section 11 or 12 may be denied
• Exemption under section 10(23C) may not be granted
• Penal consequences under section 271B for failure to get accounts audited

Therefore, timely preparation and filing of Form 10B is essential to maintain tax exemption status.

Common Errors and Troubleshooting

Here are some common errors users face while using the Form 10B offline utility:

• Error: Microsoft Edge not installed – Download and install Edge browser
• Macros not enabled – Ensure Excel macros are allowed in Trust Center settings
• Invalid data format – Follow the schema and field validations precisely
• Failed JSON upload – Ensure JSON was generated from the latest version of the utility
• Missing mandatory fields – Use the Validate button before generating JSON

Refer to the schema and schema change document to understand new validations or removed fields.

When to Use Form 10B vs Form 10BB

There is often confusion between Form 10B and Form 10BB. Here's how they differ:

• Form 10B: Used when total income exceeds the basic exemption limit before claiming exemption
• Form 10BB: Used by institutions where income is below the basic exemption limit

Ensure that you choose the correct form based on your entity's financial status.

Additional Tips for Filing Form 10B

• Double-check PAN, registration number, and section codes
• Ensure the auditor's details and membership number are correctly entered
• Maintain supporting documentation such as bank statements, ledgers, etc.
• Use the latest version of the utility and schema for accurate processing
• Coordinate with your chartered accountant for final review and digital signature

Filing Form 10B accurately ensures smooth compliance and continued exemption benefits under the Income Tax Act.