Form No. 10AB under Income-tax Act,1961

An Overview:

Every trust/charitable society/ NGO that wishes to claim the tax exemption benefits has to file Form 10A to seek fresh registration under 80G and 12A and this form can be filed by the assessee once in their whole lifetime to obtain a registration or approval order.

Prior to the Finance Act, 2020, institutions get registration for their entire life time, unless revoked by the Income Tax Department. This was the time when the concept of permanent and provisional registrations was introduced via the Finance Act, 2020, so the Form 10AB has come into play for subsequent compliance with the Income Tax Department, i.e., for renewal or permanent registration.

Now, after making an application in Form No. 10A, trust/charitable society/NGO gets registration for a period of 5 years if there are existing registered or approved trust/charitable society/NGO and the The institution which are getting registration or approval for the first time, the registration issued is a “provisional registration,” and it is valid for 3 years.

When we have to file Form 10AB:

• Renewal of existing registration or approval
• Conversion of provisional registration to regular registration
• Modification in the Memorandum of the Society or Trust Deed, as the case may be
• Activation of inoperative registration

Timeline:

• Conversion from provisional registration to regular registration: Within 6 months after the commencement of the activities or prior to the expiry of the provisional certificate whichever is earlier.
• Modification in Memorandum of the Society/Trust Deed: Within a period of 30 days from the date of such modification.
• Activation of inoperative registration: At least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative.

Documents and information required for filing Form 10AB:

• Self-certified copy of the Memorandum of the Society/ Trust Deed.
• The latest Audited financial statements of trusts/charitable societies/ NGO of last 3 years.
• KYC of all the trustees or members, as the case may be.
• Details of the activities of the trust/charitable societies/ NGO.
• Self-certified copy of an existing order granting registration or approval under Section 12A or 80G of the Income-tax Act.
• Self-certified copy of the documents evidencing adoption or modification of the objects.

Process for Filing Form 10AB:

1. Log on to the e-filing portal of the income tax department at https://www.incometax.gov.in/iec/foportal.

2. Proceed to the e-file tab, then click on Income Tax Forms and then “File Income Tax Forms.”.

3. Choose the form name “Form 10AB” and the applicable assessment year from the drop-down list.

4. Fill in the details as needed in the form and attach the needed and subjected attachments.

5. Submit the form through the DSC or EVC.

Conclusion: Navigating Form 10AB is essential for entities aiming to sustain tax exemption benefits. With clear timelines and requisite documentation, adherence to the filing process ensures seamless compliance. However, it’s prudent to stay abreast of evolving regulations and seek professional advice for accurate filing, ensuring continued tax benefits for trusts/NGOs.

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Disclaimer: The contents of this article have been prepared in accordance with the relevant provisions and information available at the time of preparation. The author does not take any responsibility and cannot guarantee that no inaccuracy occurs.