Trust Audit Report Format
FORM No. 10B
[See Rule 17B — Notification No. 7/2023, dated 21 February 2023]
Audit report under sub-clause (ii) of clause (b) of the tenth proviso to clause (23C) of section 10, or sub-clause (ii) of clause (b) of sub-section (1) of section 12A, of the Income-tax Act, 1961, in the case of a fund, trust, institution, university, other educational institution, hospital or other medical institution.
Name of the auditee: {{client_name}}
PAN: {{trust_pan}}
Approved / registered under: Section 12AB
Registration / Unique Registration Number (URN): {{trust_reg_no}}
Previous Year ended: {{period_end}}
Assessment Year: {{assessment_year}}
Part A — Auditor's Opinion
We have examined the balance sheet of {{client_name}} as at {{period_end}}, and the income and expenditure account for the year ended on that date, and report that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of the audit.
In our opinion, proper books of account have been kept, so far as appears from our examination of the books, subject to the comments given below:
_____________________________________________________________________
In our opinion and to the best of our information and according to the explanations given to us, the said accounts give a true and fair view—
- in the case of the balance sheet, of the state of affairs of the auditee as at {{period_end}}; and
- in the case of the income and expenditure account, of the excess/deficit of income over expenditure for the year ended on that date.
Part B — Statement of Particulars
I. Basic and Registration Details
- Legal name, PAN and registered address of the auditee.
- Section under which approved/registered (12AB / first regime, or the relevant sub-clause of 10(23C)), and the URN.
- Whether the approval/registration was in force throughout the previous year — details of any order granting, renewing, cancelling, or provisionally cancelling registration during the year.
- Objects of the trust/institution and whether activities during the year were in accordance with those objects.
II. Income and Application of Income (Section 11 / Section 10(23C))
| Particulars | Amount (₹) |
|---|
| Gross income derived from property held under trust / income of the fund or institution | |
| Amount applied to charitable or religious purposes / objects in India during the year | |
| Amount applied — treated as applied in the year of receipt in respect of loan/borrowing repaid during the year, or in respect of application from corpus in an earlier year now repaid (Explanation 2/3 to Sec 11(1)) | |
| Amount eligible to be accumulated up to 15% under Section 11(1) — Explanation 3 | |
| Whether the 85% application threshold under Section 11(1) is met for the year, after excluding amounts applied from corpus and from loans/borrowings not yet repaid | Yes / No — computation attached |
III. Specified Violations (Section 12AB(4) / Explanation to the tenth proviso to Section 10(23C))
Report whether any of the following specified violations occurred during the year, with details where applicable:
- Income applied for purposes other than charitable/religious purposes or the objects of the institution.
- Income applied for the benefit of a specified person referred to in Section 13(3).
- Activities not genuine, or not carried out in accordance with the conditions of registration/approval.
- The trust/institution has not complied with the requirement of any other law, and the order, direction or decree holding such non-compliance has either become final or the time for filing an appeal against it has expired.
- Application for registration/approval, or any document accompanying it, found to contain false or incorrect information.
- Any income of the trust or institution has ceased to be exempt for a reason other than a specified violation (report separately).
IV. Corpus Donations and Accumulation Under Section 11(2)
- Total voluntary contributions received during the year, and the amount received with a specific direction that it form part of the corpus.
- Whether corpus funds were invested/deposited in the modes specified under Section 11(5); details of any corpus applied for purposes other than the corpus's own object, and whether it was invested back into corpus within the following financial year (as required for continued corpus treatment).
- Amount accumulated or set apart under Section 11(2) for specified purposes, in addition to the 15% accumulation under Section 11(1) — the specific purpose(s), the period of accumulation, and whether Form 10 was filed at least two months before the due date under Section 139(1) for furnishing the return of income for the relevant assessment year.
- Whether any amount accumulated under Section 11(2) in an earlier year has, during this year — been applied for a purpose other than the one for which it was accumulated; ceased to remain invested in the modes specified under Section 11(5); not been utilised for the purpose for which it was accumulated, within the accumulation period or the year immediately following its expiry; or been credited/paid to another trust/institution registered under Section 12AB or approved under Section 10(23C). Give details and the resulting deemed income, if any, under Section 11(3).
V. Application or Use of Income/Property for the Benefit of Specified Persons (Section 13(3))
- Whether any part of the income or property was lent to, or continues to be lent to, a specified person u/s 13(3) — amount, rate of interest, and security, if any.
- Whether any land, building or other property was made available for the use of a specified person — details and rent/compensation charged, if any.
- Whether any payment was made to a specified person by way of salary, allowance or otherwise — details.
- Whether the trust/institution's services were made available to a specified person — details and remuneration received, if any.
- Whether any share, security or other property was purchased from, or sold to, a specified person — details and consideration.
- Whether any income or property was diverted in favour of a specified person — details and amount/value diverted.
- Report the relationship of each specified person to the auditee, using the relationship codes prescribed in the form's explanatory notes.
VI. Investments Under Section 11(5)
| Name and address of the concern / mode of investment | Nominal value of investment (₹) | Income from investment (₹) | Whether the investment is in a mode specified under Section 11(5) (Yes/No) | Where the concern is one in which a specified person has a substantial interest, whether investment in it exceeded 5% of that concern's capital during the year (Yes/No) |
|---|
VII. Anonymous Donations, Foreign Contributions and Business Income
- Amount of anonymous donations as defined in Section 115BBC received during the year, and the amount exempt from tax under that section (higher of 5% of total donations or ₹1 lakh, for institutions other than those wholly for religious purposes, which are outside Section 115BBC entirely).
- Foreign contributions received under the Foreign Contribution (Regulation) Act, 2010 during the year; FCRA registration status and registration number, if applicable.
- Business income incidental to the attainment of the trust's/institution's objects under Section 11(4A) — nature of business, and whether separate books of account are maintained for it.
VIII. Application of Income Outside India
- Whether any income was applied outside India during the year — amount and purpose.
- Whether the trust/institution falls within clause (a) or clause (b) of the first proviso to Section 11(1)(c) (income applied outside India for promoting international welfare in which India is interested), and whether the CBDT's general or special order under Section 11(1)(c) has been obtained.
IX. Capital Asset Acquisition and Depreciation
- Whether a capital asset was acquired during the year out of current income, and whether its cost has been claimed as application of income under Section 11(1).
- Whether depreciation has been claimed on any asset whose acquisition cost was claimed as application of income in this or an earlier year — not permitted, post the Finance Act 2014 amendment to Section 11(6).
- Details of any capital asset transferred or converted to a use other than a charitable/religious purpose during the year.
X. TDS/TCS Compliance
- Whether the trust/institution was required to deduct or collect tax at source on any payment/receipt during the year, and whether such tax was deducted/collected and deposited within the prescribed time.
- Details of any disallowance under Section 40(a)(ia) considered in application-of-income for non-compliance with TDS provisions.
XI. General Disclosures
- Method of accounting followed, and whether it changed from the immediately preceding year — effect on income, if any.
- Whether books of account and other documents are kept at the registered office — if not, the address where kept.
- Whether the trust/institution is also subject to audit under any other law (e.g. a State Trusts Act, the Societies Registration Act, or the Companies Act for a Section 8 company) — details and date of completion of that audit.
- Any other information required to be furnished as per the form's instructions.
Place: _____________________
Date: 25 August 2026
For {{firm_name}}
Chartered Accountants
Firm Registration No.:
_______________________________
{{engagement_partner}}
Partner
Membership No.: {{icai_membership_no}}
UDIN: ____________________
