This article focuses on the major changes brought in by the Finance Act 2020 by introducing new section 10AB replacing section 10AA and bringing in similar amendments in section 10(23C) and Section 80G.

These provisions pertaining to registration were originally made effective from 01-06-2020. Subsequently, due to the crisis caused by COVID-19, the Central Board of Direct Taxes (CBDT) announced to deferment of the implementation of the new procedure for approval and registration to 01-04-2021 and, therefore, the old process for approval under section 12AA, 80G and 10(23C) continued till 31-03-2021.

Now, from 1st April, 2021 the CBDT has made applicable the new provisions by introducing The Income Tax (6th Amendment) Rules, 2021 vide notification dated 26th March, 2021. The detailed guide to the renewal and fresh application process is as under:

FORM 10A : FOR PROVISIONAL REGISTRATION AND RE-VALIDATION OF EXISTING REGISTRATION

The Income Tax (6th Amendment) Rules, 2021 have notified Form 10A for making application for registration or provisional registration or intimation or approval or provisional approval.

1. Who can apply in Form 10A?

Form 10A shall be used for the following purposes

  • Application for revalidation of registration/approval for existing organizations registered/approved under section 12A/12AA/10(23C)/80G.
  • Application for provisional registrations/approval under section 12AB/10(23C)/ 80G
  • Due Dates to apply in Form 10A

1. Trusts already approved/registered and their approval/ registration is continuing an on 01-04-2021 : On or before 30-06-2021

2. Trusts making application for provisional registration/ approval : 1 month before the commencement of the previous year from which the said approval is sought.

FORM 10AB : FOR FIVE YEAR REGISTRATION AND CONVERSION OF PROVISIONAL REGISTRATION

The Income Tax (6th Amendment) Rules, 2021 have notified Form 10AB for making application for registration or approval.

1. Who can apply in Form 10AB?

Form 10AB shall be used for the following purposes:

  • Conversion of provisional registration into regular registration
  • Renewal of registration/approval after five years
  • Activating inoperative registration under section 10(23C)/10(46)
  • Re-registration for modification of objects for entities registered u/s 12.
  •  Due Dates to Apply in Form 10AB

1. Conversion of provisional registration into regular registration : Before 6 Months of Expiry or 6 Months from commencement of activities whichever is earlier.

2. Renewal of registration/approval after five year : Before 6 Months of Expiry

3. Re-registration for modification of objects for entities registered under section 12AB : Within 30 Days from such modification.

PROCESS OF RENEWAL/ REGISTRATION

Step-1 : Applicant (society or other institutions) shall apply for renewal/ registration from Income Tax Portal using their income tax login credentials in Form No 10A (or 10 AB as the case may be) electronically within prescribed due dates as explained above. Applicant shall be required to submit the documents with the application as listed below in this article.

Step-2 : On submission of application, it shall be verified by the authorized signatory of the organization through Digital Signature if return of income is filed through Digital Signature otherwise through EVC.

Step-3 : On receipt of an application in Form No 10A (or 10 AB as the case may be), the PCIT or CIT, authorized by the Board, shall either approve or reject the application. In case the application is approved, the PCIT or CIT shall issue a 16 digit alphanumeric URN.

DOCUMENTS TO BE SUBMITTED

The application in Form No. 10A or 10AB shall be accompanied by the following documents:

(a) where the applicant is created or established, under an instrument, self-certified copy of such instrument creating or establishing the applicant;

(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, if the applicant is registered under such Act;

e) self-certified copy of existing order granting approval under clause (23C) of section 10;

(f) self-certified copy of order of rejection of application for grant of approval under clause (23C) of section 10, 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 more than three preceding years) for which such accounts have been made up;

(h) 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 more than three preceding years) 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;

(i) 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 more than three preceding years) 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;

(j) note on the activities of the applicant.

REQUIREMENT OF DARPAN ID

Registration with Niti Aayog is mandatory to apply for grants under various schemes of Ministries/Departments/Governments Bodies. NGO-DARPAN portal has been started as an initiative of the Prime Minister’s Office, to create and promote a healthy partnership between NGOs and the Government. It is an e-governance application offered by NITI Aayog to electronically maintain data and transparency regarding NGOs in the country.

Before filing Form 10A or Form 10AB, NGOs must have to register themselves on the NGO-DARPAN portal to obtain a Unique Identity Number (UIN) by furnishing the required details like registration number of the organization, PAN of the organization, PAN and Aadhaar details of the office bearers/trustees etc.

REQUIREMENT TO FILE STATEMENT OF DONATION AND TO ISSUE CERTIFICATE TO DONORS

With effect from financial year 2021-22, the institutions notified under section 35 or approved under section 80G are required to file a statement of donation received under Form 10BD and also to issue the certificate to the donor in Form 10BE specifying the amount of donation received during financial year from such donor. Both the forms shall be filed on or before the 31st May, immediately following the financial year in which the donation is received.

Deduction on account of the donation shall be allowed to the donor only on the basis of the statement filed by the donee trust or institution. Hence, if a statement is not filed, the donor will not get any deduction for the donations made.

In case of delay in filing such statement, a late fee of Rs. 200 per day shall be applicable under newly inserted section 234G of the Income-tax Act. Further, a penalty under section 271K, which shall not be less than Rs. 10,000 and which may extend up to Rs. 1 lakh, shall be leviable.

EXPENDITURE ON RELIGIOUS ACTIVITY

Form 10A and 10AB have a category of charitable cum religious organization which settles the confusion of whether an organization can be both charitable as well as religious simultaneously.

The Forms separately require reporting of expenditure on religious activities which will be considered for eligibility of 80G registration as section 80G(5B) provides that up to 5% of religious activity shall be permissible and therefore to that extent an organization can be charitable cum religious.

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Disclaimer : The information contained in this article is intended solely for the dissemination of information and does not aim at solicitation of work. Though meticulous care has been taken but the author assumes no liability in respect of any loss/ damage incurred while acting on the information provided in this article. The author can be reached at [email protected] and can be called at +91-9873368144.

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Company: Samaksh Gupta & Co.
Location: Delhi, New Delhi, IN
Member Since: 04 Feb 2020 | Total Posts: 3
I am a Qualified and Practicing Chartered Accountant based in Delhi and having key interest and expertise in Direct taxes; Indirect taxes and Corporate & Economic Laws and I believe my expertise have roots in my internship in a renowned CA firm bagging its place in top 10 firms of India for past fe View Full Profile

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22 Comments

  1. PRAJWAL says:

    1)Do we need to take 12A certification first and then apply for 80 G under new proviso Form 10 A or can we upload simultaneously twice same form for both 12A and 80 G registration .

  2. JANAKKUMAR says:

    hmare NGO ke pas olredy 12AA,80G he ab hme new rulls & regu.taht registresan krvana he please hme gide kre
    thank you

    1. CA Samaksh Gupta says:

      Yes, you need to renew them as per new provisions.
      In case of any further query please feel free to call me at +91-9873368144.

  3. Prerna Bhide says:

    1) Who can self certify the documents ?
    2)The annual accounts of March 21 also required to file with application as it says ” self-certified copies of the annual accounts of the applicant relating to such prior year or years (not more than three preceding years) for which such accounts have been made up”

    1. CA Samaksh Gupta says:

      1. The head/ authorized representative of the society be it president or authorized signatory.
      2. Preceding 3 years accounts which have been audited.

  4. SK Sharma says:

    while applying for 80G renewal, in form 10B – column 2- section of Code. shall we select 80G(5)(i) or 80G(5)(ii)?
    Plz explain the difference.
    regards

  5. Arun says:

    Hi Samaksh!

    I have a query. I have applied for registration of trust during March, 2021 when the old form was available. Am I required to apply again with the new form? If I do so, I will be given registration only for AY 2022-23 and not AY 2020-21. Will my old application be processed?

    Thanks in advance

    1. CA Samaksh Gupta says:

      Hi Arun,
      Apology but I didn’t get your query properly. Please call me at +91-9873368144 to discuss the issue.

    1. Samaksh Gupta says:

      Dear Sir
      You need to renew them as per the new provisions.
      For any further clarification please feel free to call me at 9873368144.

      1. CA Samaksh Gupta says:

        However, you need to upload them twice with different documents. I might misinterpreted your question, the form will be single but need to upload twice separately for both of them.

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