The Income Tax Department has issued guidance on Form 181, an audit report required to be filed by electoral trusts under the Income-tax Act, 2025. The form applies where an electoral trust seeks to claim that voluntary contributions received should not be included in its total income. Filing of Form 181 is mandatory and must be completed electronically through the e-filing portal before the due date for filing the return of income under section 263(1). The report is to be furnished by an accountant, as defined under the Act, along with prescribed details and annexures.
The form includes a declaration by the accountant and requires disclosure of contributions received and distributed, details of application of funds for the benefit of specified persons, and expenditure incurred for administration or management. A valid PAN is required for filing, and once submitted, the form cannot be edited. Offline filing is not permitted.
Upon successful filing, the electoral trust may claim that the reported voluntary contributions are not to be included in its total income, subject to compliance with applicable provisions. The form is filed annually for each tax year. The revised format aligns with the Income-tax Act, 2025, and introduces electronic filing requirements along with updated terminology and structure.
Income Tax Department
Ministry of Finance, Government of India
FAQs on Income Tax Form 181 (Earlier form 10BC): Audit report under rule 289(12) of Income Tax Rules 2026 in the case of the electoral trust
FN 181– Frequently Asked Questions
Audit report under under RN 289(1) in the case of electoral trust
| Name of form as per I.T. Rules, 1962 | 10BC | Name of form as per I.T. Rules, 2026 | FN 181 |
| Corresponding section of I.T. Act, 1961 | 13B | Corresponding section of Income Tax Act 2025 | Schedule VIII [Table: Sl. No. 2] |
| Corresponding Rule of I.T. Rules, 1962 | 17CA | Corresponding Rule of I.T. Rules, 2026 | RN 289(1) |
Q1. What is FN 181 ?
Ans: FN 181 is an audit report required to be furnished digitally/electronically in the case of an electoral trust as defined in Schedule-VIII[Table Sl.No.2] of the IT Act,2025 whose income in the form of voluntary contribution received is not required to be included in the total income of such electoral trust.
Q2. Who should file FN 181?
Ans: Every electoral trust shall get its books of account audited by an accountant as defined in section 2(1) of the Income Tax Act,2025 who furnish an audit report in FN 181, along with the particulars forming part of its Annexure, electronically to the Commissioner of Income Tax (CPC) on the e-filing portal.
Q3. Is FN 181 mandatory?
Ans: FN 181 is an audit report mandatorily to be furnished by an accountant in respect of an electoral trust who opts to claim such reported voluntary contribution ,received as income, not to be included in the total income of such trust
Q4. What is the time limit for filing FN 181?
Ans: FN 181 is required to be filed on or before the due date of filing of return of income u/s 263(1).
Q5. Where can I file FN 181 and to which authority is it required to be furnished to ?
Ans: FN 181 is required to be furnished electronically to Commissioner of Income Tax (CPC) on the e-filing portal.
Q6. What happens after I file FN 181 ?
Ans: Upon successful filing of FN 181, the electoral trust may claim such reported voluntary contribution, received as income, not to be included in the total income of such trust in the return of income filed subject to the provisions of the Act and Rules
Q7. Can I edit FN 181 after submission?
Ans: No. Once FN 181 is submitted, it cannot be edited. Ensure all details are correct before submission.
Q8. While filling Part A of FN 181, can I leave PAN blank?
Ans: A valid PAN is mandatory for all applicants filling the form and FN 181 cannot be filed in absence of PAN.
Q9. Can FN 181 be filed offline?
Ans: No. FN 181 can only be submitted online through the Income Tax e-Filing portal.
Q10. Why is FN 181 important?
Ans: FN 181 is an audit report for claiming reported voluntary contribution as not included in the total income of the electoral trust,
Guidance Note on Income Tax Form 181 (Earlier form 10BC): Audit report under rule 289(12) of Income Tax Rules 2026 in the case of the electoral trust
Form 181 – Audit report to be filed in the case of electoral trusts as per the Income Tax Act,2025(the Act)
Purpose:
Form 181 is an audit report required to be furnished digitally/electronically in the case of an electoral trust as defined in Schedule-VIII [Table Sl.No.2] whose income in the form of voluntary contribution received is not required to be included in the total income of such electoral trust.
Who Should File:
An Accountant as defined in section 2(1) of the Act in respect of voluntary contribution received by an electoral trust during a given tax-year.
The application in Form 181 is required to be furnished electronically on the e-filing portal.
Frequency & Due Dates:
| Frequency | Covered | Due Date for Filing |
| Annual | Tax-Year | Prior to due date of filing of return of income u/s 263(1) |
Structure of Form 181:
> Declaration by the accountant.
> Details of contribution received and distributed
> Details of application in respect of benefit of persons/ Interested person referred to in rule-289(10)
> Details of expenditure incurred towards administration or management of affairs of the electoral trust
Filing Count:
On average, 24 Form No 10 BCs ( now Form No.181) were filed each year over the past three years and no forms were filed beyond this period of 3-years.
What is the process flow of filing Form 181 ?
The process flow includes following steps
1. Furnishing of declaration by the accountant.
2. Furnishing details of voluntary contribution received and distributed
3. Furnishing details of application in respect of benefit of persons/ Interested person referred to in Rule-289(10)
4. Furnishing details of expenditure incurred towards administration or management of affairs of the electoral trust
Outcome of Processed Form 181:
Electoral trusts may claim such reported voluntary contribution received as income which is not required to be included in the total income of such trust.
Brief note on broad or qualitative changes proposed:
Simplification of already existing form in alignment with the Act
Challenges and Solutions:
NA
Common Changes made across Forms:
1. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.
2. Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.
3. The present form is proposed to be an e-form and the rules are accordingly drafted.
