Form 10AB | Final Registration Under Section 80G of Income Tax Act for NGO

Dear friends, as we all know from 01.04.2021, there has been drastic change made in registration process of NGO, which wants to get registered under Section 80G of Income Tax Act, 1961. In earlier process before 31.03.2021, NGO has to registered once under Section 80G of Income Tax Act and the registration is valid for lifetime until the same is specifically cancelled by Income Tax department. From 01.04.2021, this process has been changed and now the registration has been granted for a limited period of time, which is required to be renewed on regular basis.

As per new process, all existing NGO which are registered under Section 80G as on 31.03.2021, is required to apply for Provisional registration on or before 30.06.2021 in Form 10A. Even the new NGO can apply for Provisional registration. The validity period of provisional registration is 3 years; however, NGO is required to apply for Final registration in Form 10AB under Section 80G of Income Tax Act, 1961 at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier.

From above it is clear that, all running NGO or newly approved NGO has to apply for Final Registration under Section 80G in Form 10AB within six months of commencement of its activities. When we apply for Final registration under Form 10AB and it is approved by proper officer then it is valid for 5 years. Now, we will discuss about the documents required for Filing application in Form 10AB.

As per rule 11AA, following documents are required to be attached while Filing application in Form 10 AB.

(a) here the applicant is created, or established, under an instrument, self-certified copy of the instrument;

(b) 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;

(c) 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;

(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act;

(e) self-certified copy of existing order granting registration under clause (vi) of subsection (5) of section 80G;

(f) 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;

(g) 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;

(h) note on the activities of the applicant.

Note: If the applicant receives or intends to receive any grant or assistance from either the Central Government or State Government then the registration number with Darpan Portal of the Niti Aayog should be mandatorily provided by the applicant.

Additional Detail to be Provided in Form 10AB which are not required to be reported at time of Provisional Registration in Form 10 A

> Details of School/ Institutions/ religious places which are being managed/ controlled/ administered/ owned by NGO

> If NGO is doing any business activity, then business code of that activity needs to provide

> Details of all bank accounts in the name of NGO, needs to provide

> Details of all land or building or both held by the applicant

> Details of expenditure incurred on religious activities (If any)

After receipt of information, the proper officer will verify the details and after satisfaction will issue Final registration certificate which have 5 Years validity.

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Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers.

The Author “CA. Shiv Kumar Sharma” can be reached at mail –[email protected] and Mobile/Whatsapp – 9911303737/ 9716118384