09 Apr 2021

1. BRIEF INTRODUCTION

 

Last year, The Finance Act, 2020 introduced new procedures for obtaining registration/ re-registration by various charitable trusts, institutions, funds, university, hospital or educational institution etc. u/s 12AB/ 80G(5) of the Income-tax Act, 1961 (‘the Act’) which was deferred till April 1, 2021. In this regard, the rules and guidelines were awaited to be notified by the CBDT.

CBDT vide Notification No.19/2021 dated March 26, 2021 has notified new forms/ procedures by making amendments in Rule 11AA and Rule 17A of the Income-tax Rules,1962.

New forms i.e. Form 10A and Form 10AB have been introduced w.e.f. April 1, 2021, elaborated as under:

 

2. REVISED REGISTRATION PROCEDURE

 

A. Form 10A which is already available on Income tax portal, shall be required to be submitted electronically in following cases:
S. No. Cases Time period for filing of Form
1 The entities already approved under clause (vi) of sub- section (5) of section 80G of the Act; Within three months from 01.04.2021 (i.e. up to 30.06.2021)
2 Fresh registration/ any other case where registration is sought under section 80G of the Act; One month prior to commencement of FY from which said approval is sought.
3 Where trust/ institution is already registered under section 12A or 12AA of the Act; Within three months from 01.04.2021 (i.e. up to 30.06.2021)
4 Fresh registration/ any other case, where registration is sought under section 12AA of the Act. One month prior to commencement of FY from which said registration is sought.

 

B. Form 10AB shall be required to be submitted electronically in following cases:
S. No. Cases Time period for filing of Form
1 Where the institution or fund is approved under section 80G of the Act and such approval is due to expire. Six months prior to expiry of such approval.
2 Where the institution or fund is provisionally approved under section 80G of the Act. Six months prior to expiry of such provisional approval or within six months from commencement of its activities, whichever is earlier.
3 Where trust/ institution is registered under section 12AB of the Act. Six months prior to expiry of such registration.

 

4 Where trust/ institution is provisionally registered under section 12AB of the Act Six months prior to expiry of such provisional registration or within six months from commencement of its activities, whichever is earlier.
5 Where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11 of the Act.

 

Six months prior to the commencement of the assessment year from which the said registration is sought to be made operative
6 Where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration Within a period of thirty days from the date of the said adoption or modification.

 

Notification has also prescribed the set of documents that need to be furnished along with the forms. Similar rules/procedures have been notified for section 10(23C), 35(1) of the Act.

Hope you find the above information relevant and useful.

 

Kind Regards,

Tax Division

T R Chadha & Co LLP

 

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