In the recent notification RBI/2022-23/178 dated 16th February 2023, RBI advised Member banks to incorporate necessary changes in their core banking / middleware solutions to capture the requisite details while forwarding the foreign donations through NEFT and RTGS systems to SBI. Details include basic details of donor, country, Legal Entity Identifier (LEI) code which is a unique code to identify parties to financial transactions worldwide, Purpose of donation etc) and SBI is required to report the same to MHA on a daily basis.
Further, as per existing provisions of Income Tax, when income of a trust (computed without giving effect to exemption) exceeds Rs.2,50,000, the accounts have to be audited by a CA in Form 10B.
Vide Notification No.7/2023 dated 21st Feb 23, substantial changes are done in the said Audit report. As per said notification, Form 10B will be applicable to trust wherein income of trust (computed without giving effect to exemption) exceeds 5 crores or trust has received any foreign contribution or trust has applied any part of its income outside India.
New form 10BB is introduced and the same will be applicable to trust when income of a trust (computed without giving effect to exemption) exceeds Rs.2,50,000 and Form 10B is not applicable.
In the existing Form 10B, CAs are required to certify that accounts give a true and fair view. As per notification, now in both forms, in addition to certification for account, CAs will be required to certify that information mentioned in the Annexures are True and correct. Annexure format is of 15 pages which includes 49 points and 29 schedules. Form 10BB annexure format is of 4 pages which includes 32 points and 7 schedules.
Many details asked in both forms are such details which are currently provided by trust in Income Tax forms and Tax Audit Report (if applicable).
Last year vide Notification No. 94/2022 dated 10 August 2022 notified a new rule for the Trust to maintain books of account and other long list of details/documents.
