Form 10B / 10BB Applicability & 85% Application Working Paper
FORM 10B / 10BB APPLICABILITY & 85% APPLICATION WORKING PAPER
Trust/Institution: {{client_name}} · PAN: {{trust_pan}} · Registered under: Section 12AB · Registration/URN: {{trust_reg_no}} · Previous Year: {{period_end}} · Assessment Year: {{assessment_year}}
Purpose: (1) determine whether this year's audit report is filed in Form 10B or Form 10BB under Rule 16CC (Sec 10(23C)) / Rule 17B (Sec 12A), and (2) compute the 85% application test under Sec 11(1), correctly excluding corpus and loan-funded application per Explanation 4.
Part A — Form 10B vs Form 10BB applicability test
| Condition (Rule 16CC / 17B, effective from AY 2023-24) | Applicable to this entity? (Y/N) |
|---|
| Total income (before claiming Sec 11/12 or 10(23C) exemption) exceeds ₹5 crore during the previous year | |
| The trust/institution received any foreign contribution during the previous year (as defined in the FCRA, 2010) | |
| The trust/institution applied any part of its income outside India during the previous year | |
If ANY condition above is Y → Form 10B (detailed) applies. If ALL are N → Form 10BB (simplified) applies. Conclusion: this entity must file Form ____ for AY {{assessment_year}}.
Part B — 85% application computation (Sec 11(1))
| Particulars | Amount (₹) |
|---|
| Gross receipts / income of the trust during the year | |
| Less: Corpus donations received with specific written direction (Sec 11(1)(d)) — excluded from income if invested in Sec 11(5) modes | |
| Less: Voluntary contributions treated as corpus at the trust's option (where permitted) | |
| = Income for the 85% application test | |
| Amount applied for charitable/religious purposes in India during the year (revenue + capital application, per books) | |
| Less: Application out of corpus funds (Explanation 4(i) — does NOT count towards 85% in the year spent) | |
| Less: Application out of loans/borrowings (Explanation 4(ii) — does NOT count towards 85% in the year spent) | |
| Add: Corpus amount reinvested/redeposited into Sec 11(5) modes during the year (counts as application in the year redeposited, to the extent redeposited) | |
| Add: Loan/borrowing repaid out of the current year's income (counts as application in the year repaid, to the extent repaid) | |
| = Net application recognised for the 85% test | |
| 85% of income for the application test (from row above) | |
| Application meets 85%? (Y/N) | |
| If N — shortfall amount | |
Part C — Shortfall: accumulation under Sec 11(2), if applicable
| Item | Details |
|---|
| Form 10 filed before the due date under Sec 44AB / 139(1) for this AY? (Y/N) | |
| Specific purpose(s) stated for accumulation | |
| Period of accumulation claimed (not exceeding 5 years) | |
| Accumulated amount invested/deposited in Sec 11(5) modes | |
| Prior-year accumulations still within their claimed period — tested for timely utilisation | |
Part D — Other checks
| Item | Tested (Y/N) | Observation |
|---|
| 12AB / 10(23C) registration valid for the full year (check validity period, renewal due date) | | |
| Anonymous donations, if any, tested against Sec 115BBC (taxable beyond the higher of 5% of total donations or ₹1 lakh, for entities not wholly religious) | | |
| Related-party / Sec 13(1)(c)-(3) benefit-to-specified-persons test performed (see the RPT register template for the transaction log) | | |
| Investments tested for compliance with Sec 11(5) specified modes | | |
| Books of account maintained per Sec 12A(1)(b)/44AA requirements applicable to the entity | | |
Part E — Conclusion
Conclusion on form applicability (10B/10BB) and 85% application compliance for the year: ____________________________________________
| Prepared by | Reviewed by | Engagement partner |
|---|
| | |
