CBDT has clarified that while filling Form 10B & 10BB, details are required to be given of those persons who have contributed substantially. Present language in the Form defines ‘persons who have made a substantial contribution’ as any person whose total contribution upto the end of the relevant previous year exceeds fifty thousand rupees (as referred to under S.13(3)(b) of the Income Tax Act. Considering the language in the Act is such which would mean providing details of all persons who have contributed Rs 50,000 or more from inception of the NPO. Compiling this information, would not be an easy task, hence many NPOs and their advisors approached CBDT, stating difficulties that they are facing in compiling this information.
CBDT after due examination and consideration, has clarified that for the purpose of Form 10B & Form 10BB, persons who have contributed substantially during the Financial Year only needs to be disclosed.
Further CBDT has clarified that as far as ‘relative’ for such persons is concerned it may be provided to the extent information is available. Similarly details of concerns in whom such person referred to have substantial interest may be provided to the extent available.
This provides some relief both to the NPOs and their auditors. However bigger question is this definition has been there on the statute for long, why not change the definition in the statute, if it is found difficult to comply. (click here for circular)
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