What are the Proposed Changes about Charitable Trusts?
The CBDT or Central Board of Direct Taxes has recently suggested some changes in the charitable trusts. A draft notification has been floated to make necessary amendments in a section of income tax rules that deal with the Charitable Trust tax audit report. There are several new disclosure based requirements compulsory in the annexure to Form 10B – the amended section.
It has, in turn, enhanced the auditor’s responsibility significantly. The apex direct tax body also invites inputs from the general public and stakeholders.
Know the Detail about Proposed Changes to Charitable Trusts
After the approval and implementation of changes, the auditor will have to confirm that the specifications given in the annexure are 100 percent correct and accurate, in his opinion and to the best of the information.
The responsibility of not only the auditor but also the assessee will enhance by manifolds post-implementation. The revised statement includes complete details of the operations of the Trust. It is to ensure that the Trust is entirely acquiescent with the appropriate procedures and processes.
Partner- audit & assurance (Nangia & Co LLP), Prateek Agarwal, stated that the Form was revised a long time and the details given in the Form may seem unnecessary and too many. But considering the needs of the present times, these are completely justified. 10B, the revised audit form depicts the essential change in the approach in which Digital India’s tax and regulatory authorities consider the compliances.