1.0 Charity registration granting donation deduction u/s 80G of the Income Tax Act (‘IT Act’) to the donors (Rule 11AA of the Income Tax Rules, 1962 (‘IT Rules’):

1.1 Requirement for approval of institution or fund under section 80G(5)(vi) of the IT Act i.e. for granting donation deduction u/s 80G of the IT Act to the Donors

Form in which application to be made Type of Application Applicable to –
Form 10A in case of application under clause (i) or clause (iv) of section 80G(5) of the IT Act to the Principal Commissioner or Commissioner authorised by the Board; or √ Existing charities having registration u/s 80G(5)(vi) of the IT Act or residual entities to which clause (i) to (iii) of first proviso is not applicable
Form 10AB in case of application under clause (ii) or clause (iii) of section 80G(5) of the IT Act to the Principal Commissioner or Commissioner authorised under the said proviso

 

√ Charities whose period of approval is due to expire (application to be made at least 6 months prior to expiry) – Sec 80G(5)(ii) or

√ Charity which has been granted provisional approval (application to be made at least 6 months prior to expiry or provisional approval or commencement of activities, whichever is earlier)– Sec 80G(5)(iii)

1.2 Documents to be accompanied with the application in Form 10A or Form 10AB, as required by respective Forms

Details of Documents Our Comments
1. where the applicant is created, or established, under an instrument, self-certified copy of the instrument; √ For section 8 / section 25 Companies – Memorandum of Association (MoA) and Articles of Association (AoA)

√ For Trusts – Trust Deed

√ For Societies – Memorandum of Association (MoA)

2. where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
3. self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be; √ For section 8 / section 25 Companies – Certification of Incorporation issued by Registrar of Companies (RoC)

√ For Trusts – Certificate of Registration issued by Charity Commissioner

√ For Societies – Societies registration certificate issued by prescribed authority

4. self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act; √  Foreign Contribution (Regulation) Act, 2010 (FCRA) registration copy, if any.
5. self-certified copy of existing order granting registration under clause (vi) of sub section (5) of section 80G; √  Copy of existing section 80G(5)(vi) registration certificate
6. self-certified copy of order of rejection of application for grant of approval under clause (vi) of sub-section (5) of section 80G, if any; √  Copy of section 80G(5)(vi) registration rejection order passed, if applicable
7. where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up; √  Audited financial statements of the Charity for FY 2018-19 and FY 2019-20 duly self-certified

√  Provisional financial statements for FY 2020-21 (management certified)

8. note on the activities of the applicant √  Short note on activities of the Charity on the letterhead

1.3 Manner of Signature of Form 10A and Form 10AB

Using digital signature, if the return of income is required to be furnished under digital signature √ For section 8 / section 25 companies
through electronic verification code in a case not covered under clause (i) √ For charities other than For section 8 / section 25 companies

1.4 Process post receipt of Form 10A and Form 10AB

Form in which  application made Process at IT Department Level Output for Charities
Form 10A Application On receipt of an application in Form No.10A, the Principal Commissioner or Commissioner, authorised by the Board shall pass an order in writing granting approval under clause (i) or (iii) of the second proviso read with third proviso to section 80(5) of the IT Act in Form 10AC and issue a sixteen digit alphanumeric Unique Registration Number (URN) to the applicants making application as per clause (a) of the sub-rule (1). √ Principal Commissioner or Commissioner shall pass an order 80G(5)(vi) of the IT Act

√ The order shall be in Form 10AC

√ 16 digit URN to be granted to the applicant

√ This will be applicable forxisting charities

Form 10AB Application In case of an application made in Form No. 10AB under clause (ii) of the sub-rule (1), the order of approval or rejection or cancellation under second proviso to section 80G(5) of the IT Act shall be in Form No. 10AD and in case if the approval is granted, sixteen digit alphanumeric number Unique Registration Number (URN) shall be issued, by the Principal Commissioner or Commissioner referred to in second proviso to sub-section (5) of section 80G. √ Principal Commissioner or Commissioner shall pass an order of approval or rejection or cancellation u/s 80G(5)(vi) of the IT Act

√ The order shall be in Form 10AD

√ In case approval is granted, 16 digit URN to be granted to the applicant

√ This will be applicable for new charities whose period of approval is to expire / whose provisional approval is to expire

2.0 Charity registration granting charitable deduction u/s 11 of the it act to the charity (Rule 17A of the IT Rules)

2.1 Requirement for approval of institution or fund under section 12AB of the IT Act i.e. for eligibility of charity to claim charitable deduction

Form in which application to be made Type of Application Applicable to –
Form 10A in case of application under clause (i) or clause (vi) of section 12A(1)(ac) of the IT Act for registration of a charitable or religious trust or institution to the Principal Commissioner or Commissioner authorised by the Board; or √ Existing charities having registration u/s 12A or u/s 12AA of the IT Act or residual entities to which of clause (ac) of sub-section (1) of section 12A
Form 10AB in case of application under clause (ii) or clause (iii) or clause (iv) or clause (v) of section 12A(1)(ac) of the IT Act for registration of a charitable or religious trust or institution to the Principal Commissioner or Commissioner authorised by the Board; or √ Charities granted registration u/s 12AB and whose period of approval is due to expire (application to be made at least 6 months prior to expiry) – Section 12A(1)(ac)(i) of IT Act or

√ Charity which has been granted provisional registered u/s 12AB (application to be made at least 6 months prior to expiry or provisional approval or commencement of activities, whichever is earlier)– Section 12A(1)(ac)(iii) of IT Act

√ Where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11 (application to be made at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative) – Section 12A(1)(ac)(iv) of IT Act

√ Where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, (application to be made within a period of thirty days from the date of the said adoption or modification) – Section 12A(1)(ac)(v) of IT Act

2.2 Documents to be accompanied with the application in Form 10A or Form 10AB, as required by respective Forms:

Details of Documents Our Comments
1. where the applicant is created, or established, under an instrument, self-certified copy of the instrument; √ For section 8 / section 25 Companies – Memorandum of Association (MoA) or Articles of Association (AoA)

√ For Trusts – Trust Deed

√ For Societies – Memorandum of Association (MoA)

2. where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
3. self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be; √ For section 8 / section 25 Companies – Certification of Incorporation issued by Registrar of Companies (RoC)

√ For Trusts – Certificate of Registration issued by Charity Commissioner

√ For Societies – Societies registration certificate issued by prescribed authority

4. self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act; √ Foreign Contribution (Regulation) Act, 2010 (FCRA) registration copy, if any.
5. self-certified copy of existing registration under section 12A or 12AA as the case may be; √ Copy of existing section 12A or 12AA registration certificate
6. self-certified copy of order of rejection of application for grant of approval under section 12A or 12AA as the case may be; √ Copy of section 12A or 12AA or 12AB registration rejection order passed, if applicable
7. where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up; √ Audited financial statements of the Charity for FY 2018-19 and FY 2019-20 duly self-certified

√ Provisional financial statements for FY 2020-21 (management certified)

8. where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
9. where the income of the applicant includes profits and gains of business as per the provisions of sub-section (4A) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
10. self-certified copy of the documents evidencing adoption or modification of the objects; √ This will be applicable if there is any change in the objects of the Charity
11. note on the activities of the applicant √ Short note on activities of the Charity on the letterhead

2.3 Manner of Signature of Form 10A and Form 10AB

Mode of Application Applicable to
Using digital signature, if the return of income is required to be furnished under digital signature √ For section 8 / section 25 companies
through electronic verification code in a case not covered under clause (i) √  For charities other than For section 8 / section 25 companies

2.4 Process post receipt of Form 10A and Form 10AB

Form in which application made Process at IT Department Level Output for Charities
Form 10A Application On receipt of an application in Form No.10A, the Principal Commissioner or Commissioner, authorised by the Board shall pass an order in writing granting approval under section 12AB(1)(a) of the IT Act or 12AB(1)(c) of the IT Act read with section 12AB(3) of the IT Act in Form 10AC and issue a sixteen digit alphanumeric Unique Registration Number (URN) to the applicants making application as per clause (i) of the sub-rule (1). √ Principal Commissioner or Commissioner shall pass an order u/s 12AB(1) of the IT Act

√  The order shall be in Form 10AC

√  16 digit URN to be granted to the applicant

√  This will be applicable for existing charities

Form 10AB Application In case of an application made in Form No. 10AB under clause (ii) of the sub-rule (1), the order of approval or rejection or cancellation under section 12AB(1)(b)(ii) of the IT Act shall be in Form No.10AD and in case if the registration is granted, sixteen digit alphanumeric number Unique Registration Number (URN)shall be issued by the Principal Commissioner or Commissioner referred to in of sub-section (1) of section 12AB.

 

√  Principal Commissioner or Commissioner shall pass an order of approval or rejection or cancellation u/s 80G(5)(vi) of the IT Act

√  The order shall be in Form 10AD

√  In case approval is granted, 16 digit URN to be granted to the applicant

√  This will be applicable for new charities whose period of approval is to expire / whose provisional registration is to expire / whose objects have been amended and a fresh application was made / whose registration has become inoperative

3.0 Furnishing of Statement of particulars and certificate under clause section 80G(5)(viii) of the IT Act

Statement of particulars required to be furnished by a charity under section 80G(5)(viii) of the IT Act shall be furnished in respect of each financial year, beginning with the financial year 2021­2022, in Form No. 10BD and shall be verified in the manner indicated therein.

4.0 Furnishing of Donation Certificate under section 80G(5)(ix) of the IT Act

The charity shall furnish the certificate as referred to in section 80G(5)(ix) of the IT Act to the donor in Form No. 10 BE specifying the amount of donation received during financial year from such donor, beginning with the financial year 2021-2022.

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Company: Amol Bongale & Co.
Location: Thane, Maharashtra, IN
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I am a Chartered Accountant, Registered Valuer (SFA), qualified CPA(USA), qualified Independent Director having experience spanning more than 10 years in Direct Taxation, FEMA, Valuation advisory, compliance and representation service . View Full Profile

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