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Is it mandatory for filing tax audit report before filing ITR ? or can I file ITR 1st and then TAR

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ashok ntr

29 Points Posted on 14 December 2022

Hi,
for the AY 2019-20, we have filed ITR of a trust before filing Form 10B ( audit report ) both are with in the respective due dates, but now department has issued a notice stating we are violated the conditions of sec 11 and ineligible to claim exemption under sec 11 due to non filing of form 10B along with ITR form, is it valid ?

Replies (3)

Quick Summary

This discussion clarifies the mandatory order for filing tax documents. It highlights that the Tax Audit Report (Form 10B) must be filed *before* or along with the Income Tax Return (ITR) for certain cases, particularly when claiming exemptions under Section 11. Filing the ITR first can lead to notices from the department, potentially jeopardising exemptions. The advice given includes filing a condonation of delay application and a rectification request if the ITR was filed prematurely.

sabyasachi mukherjee

Profession

19978 Points Posted on 14 December 2022

First audit then tax audit report needs to be filed.How before audit you are filing itr. Sec 11 is applicable obviously.

ashok ntr

29 Points Posted on 14 December 2022

But no where in the Sec 12A - conditions for claiming exemption under sec 11 and 12, it is not mentioned. It says we have to file ITR with in due date and TAR (10B) with in due date

Sarthak Kumar Dash

Student

144 Points Posted on 14 December 2022

The department can not deny exemption for late filing of form 10B. Submit an application of condonation of delay along with all the documents to the CIT (there is a circular issued by CBDT instructing the same, i guess in July 2022) and also, file a rectification u/s 154.