Deferrement of Procedure for Approval/ Registration/Notifications of certain entities U/s 10(23C), 12AA, 35 & 80G of Income Tax Act, 1961 till 01st October,2020

The Finance Act, 2020 has introduced certain new compliance burdens on Charitable Trusts and Exempt Institutions. The Budget 2020 has amended certain provisions of the Income Tax Act, 1961 having a great impact on the functioning of the registered Charitable Trusts and NGOs.

These charitable trusts and NGOs have been levied with the renewal of registration already issued,  setting an expiry date for registration, filing of statements of donation receipts, and other formalities.

All Charitable and Religious institutions (including NGOs) which were already issued registration under the following Section 10(23C),12A, 12AA & 80G of Income Tax Act 1961 are also required to take Fresh Registration under section 12AB of Income Tax Act 1961. 

Entities registered  under section 10(23C) and 12AA will now be required to apply for either of the approval under section 10(23C) or registration under section 12AA, but not both as it was earlier. 

Charitable trusts and exempt institution which were already registered under section 12A or section 12AA of Income Tax Act, 1961 will now be required to reapply online for registration and approval by August 31, 2020Provisions of registration under section 12AA or section 12A will become redundant from 01st June 2020 and a new section 12AB will come into force with effect from 01st June 2020. All the existing registered trusts under the erstwhile section 12A or section 12AA would move to new provision section 12AB. 

Similarly, charitable trusts and exempt institutions which already have Section 80G certificate will now be required to reapply online for registration or approval by August 31, 2020. The registration shall remain valid for 5 years. 

These new Procedural compliances were about to applicable from June 1, 2020. Hence seeing the present situation, the CBDT has decided to give relief and therefore The new compliances under the mentioned section which were made applicable from June 1, 2020 and should have been completed by August 31, 2020 now changed to October 1, 2020 and shall continue till December 31, 2020.

This view is shared as per the tweet shared by Income Tax India, Still to form as part of  Law, need to wait till the issuance of further Circular or Notifications as the case may be.

Kindly for further clarifications refer the Notification or Circular issued by the Department.

Source-New Procedure for registration, approval U/s.10(23C), 12AA, 35 & 80G deferred

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Qualification: CA in Practice
Company: ROHIT A KUMAR & ASSOCIATES
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One Comment

  1. A G KHARBHIH says:

    I shall be grateful if you could help me step by step with the procedure of online re-registration of 12A as I am unable to find the site

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