Get Form 57 Of Income Tax Act

To claim such an exemption under section 10(23C), an Audit Report in Form 10BB is required to be filed by such trust or institution. In case of a trust or institution registered under section 11, the prescribed audit report is Form 10B.

Form 10B is used under rule 17B sec 12AB for charitable and religious trust. Form 10BB is used under rule 16CC under section 10(23C) - for exemption to Educational Institutions. Both of the forms are required to filed along with return filing.

Section 56(2)(x) of the Income Tax Act ('IT Act') provides that where any person receives any property (including shares of a company) for a consideration less than its fair market value (computed as per the prescribed method), the fair value as exceeding the consideration would be taxable in the hands of the person ...

Clause (iii) to section 57 makes admissible the deduction of any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income (income chargeable under the head income from other sources ).

1 crore: Section 10(23C)(iiiad) provides that the income earned by any university or educational institution existing solely for educational purposes and not for the purposes of profit shall be exempt from tax if the aggregate annual receipts of such university or educational institution do not exceed Rs. 1 crore.

Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C).

57 provides for deduction of specific expenses such as commission or remuneration paid for realizing the income, provided there is a direct linkage between the expenditure incurred with the earning of such income.

Rule 17B of the Rules provide that said report of audit of the accounts of a trust or institution shall be in Form No. 10B. The Form No 10B besides providing the Audit Report provides for filing of Statement of particulars as Annexure.

Any other expenditure: Any other expenditure, not being a expenditure of a capital nature, expended wholly and exclusively for the purpose of making or earning such income, can be claimed as a deduction.