Form 10BB – The Small Form That Can Save (or Sink) Your School’s Finances

Bhagya Lakshmi
3 days ago
3 min read

If you run a school, college, hospital, or charitable trust, there’s one small form that can decide whether you pay zero tax or a huge tax bill.

That form is Form 10BB.

What is Form 10BB?

Think of Form 10BB as a health check-up report for your institution’s finances.Just like a doctor certifies your health, a Chartered Accountant (CA) certifies your accounts through this form and sends it to the Income Tax Department.

It tells the department:

How much money you received.
How you spent it.
Whether you followed all the rules for using those funds for the right purpose (education, charity, medical relief, etc.).

Who Needs to File It?

Educational institutions (schools, colleges, universities) claiming exemption from income tax.
Hospitals and medical institutions enjoying tax-free status.
Charitable trusts registered under Section 12AB.

Basically, if your institution doesn’t want to pay income tax because you are doing charitable or educational work, you need this form.

Why is it so Important?

Your Tax Exemption Depends on ItMiss filing 10BB? The tax department can cancel your exemption and treat your entire income as taxable.Example: A school earning ₹2 crore per year might have to pay tax of ₹60–70 lakhs if this form isn’t filed on time.
It Proves You Follow the RulesThe government gives tax benefits to genuine institutions. 10BB shows you’re using the money for the right purposes and not for personal gain.
No Second Chances (Usually)Even if you file your income tax return, missing 10BB can still kill your exemption. Sometimes, you can request a “condonation of delay,” but it’s at the mercy of the tax authorities.

A Real Story From the Field

Recently, I came across a case where a tax consultant was handling the accounts of 20–30 schools.They all relied on him to take care of compliance. Unfortunately, he missed filing Form 10BB for every single one of them.

Within months, all the schools received notices from the Income Tax Department.The management teams had to personally visit the Assessing Officer and explain the situation.The good news — the penalties were removed after being heard.The bad news — each school still had to spend several lakhs of rupees on legal processes and additional compliance work just to secure their exemption again.

This could have been avoided entirely if the form had been filed on time.

When Should You File It?

Before you file your Income Tax Return (ITR).
Generally by 30th September of the assessment year.

What Happens If You Miss It?

Your exemption claim will be rejected.
You might have to pay tax on your entire receipts.
You may also have to face penalties and interest (even if some relief is later given, you’ll still incur heavy costs to fix the issue).

Form 10BB may look like a small form, but it’s a giant gatekeeper to your tax benefits.If you run a trust, school, or hospital — make sure:

Your CA knows the due date.
It’s filed before your ITR.
The details match your accounts perfectly.

Because in tax matters, missing one small step can cost you a mountain of money.

Set a yearly reminder in August to talk to your CA about 10BB filing. Don’t wait till September rush.

And always cross-check that the filing has actually been done — because “I thought my consultant did it” is not a defence in the eyes of the tax department.