The charitable trust in India gets exemption as per section 11 and section 12 of the Income Tax Act.The various conditionsÂ includingÂ registrationÂ procedure is given in section 12AA and section 13 of the I.T.Act. Various rules are also Â prescribed in I.T Rule . One of the condition for claiming exemption is [ as per Rule 17 B ] is that audit report in Form 10B has to be filed along with return of income. It must be noted that the return of a charitable trust is filed inÂ paperÂ form and attachingÂ auditÂ report is required as per Rule 12 of I.T.Rule.
The issue however is whether failure of attaching the statutory audit report along with return of charitable trust , the claim of exemption can be denied forever. In other words , whether attaching the audit report with the income tax return is mandatory.