Introduction
There is sea change in provisions relating to registration of trusts. Finance Act 2020 has set out norms for registration of Trusts. This article discusses these new norms in context of:
1. Trusts registered under old regime
2. Provisional registration of new trusts
3. Final registration of provisionally registered trusts
4. Renewal of registration of finally registered trusts
5. Revival of registration of trust in lieu of exemption u/s 10(23C) and 10(46)
6. Fresh registration on modification/adoption of objects not conforming to conditions of registration
7. Pending application pending for registration.
Further this new regime has brought with it number of issues for which we need to find answers with in the ambit of law, which have been discussed here under:
Type of registration |
Time for applying registration |
Period of regist-ration |
Effective Date of registration |
Inquiries to be made |
Whether regist-ration can be rejected |
Type of regist-ration |
Period available for granting regist-ration |
Subse-quent Withd-rawal Can be done |
Existing Trust registered u/s 12A/ 12AA |
3 months from Ist October 2020 i.e. till 31-12-2020[S. 12A(1)(ac)(i) + Press release dated 24-06-2020] |
5 years[S. 12AB (1)(a)] |
From the assessment year from which such trust or institution was earlier granted registration[S. 12A(2) Proviso clause (a)] |
None |
No. [S. 12AB (1)(a)] |
Final but subject to renewal after 5 years |
3 months from the end of month in which appli-cation is received |
Yes[S. 12AB (4)] |
Fresh Application for registration |
At least one month prior to commence-ment of previous year [i.e. 28th Feb.] or date of new source of income[S.12A(1)(ac)(vi)] |
3 years[S. 12AB(1)(c) |
From commence-ment of previous year or date of new source of income |
None |
No[S. 12AB (1)(c)] |
Provis-ional subject to final regist-ration after 3 years |
1 month from the end of month in which appli-cation is received |
No[S. 12AB (4)] |
Final Registration of provisionally registered trust |
At least 6 months prior to commence-ment of previous year [i.e. Till 30th Sep]or With in 6 months from the commence-ment of activities of the trust, which ever is earlier[S.12A(1)(ac)(iii)] |
5 years[S. 12AB(1)(b)(ii)(A)] |
From the first of the assessment years for which it was provision-ally registered[S. 12A(2) Proviso clause(a)] |
Satis-faction about genuine-ness of activities+ Compliance of material legal require-ments[S. 12AB(1)(b)(i)] |
Yes[S. 12AB(1)(b)(ii)(B)] |
Final but subject to renewal after 5 years |
6 months from the end of month in which appli-cation is received |
Yes[S. 12AB (4)] |
Renewed Registration of already registered trust |
At least 6 months prior to expiry of period of registration [i.e. Till 30th September][S.12A(1)(ac)(ii)] |
5 years[S. 12AB(1)(b)(ii)(A)] |
From the expiry of previous registration |
Satis-faction about genuine-ness of activities + Compliance of material legal require-ments[S. 12AB(1)(b)(i)] |
Yes[S. 12AB(1)(b)(ii)(B)] |
Final but subject to renewal after 5 years |
6 months from the end of month in which appli-cation is received |
Yes[S. 12AB (4) ] |
Revival of inoperative registration due to approval u/s 10(23C) |
At least six months prior to the commence-ment of the assessment year from which the said registration is sought to be made operative[S. 12A(1)(ac)(iv)] |
5 years[S. 12AB(1)(b)(ii)(A)] |
From the assessment year from which registration sought to be made operative |
Satis-faction about genuine-ness of activities+ Comp-liance of material legal require-ments[S. 12AB(1)(b)(i)] |
Yes[S. 12AB(1)(b)(ii)(B)] |
Final but subject to renewal after 5 years |
6 months from the end of month in which appli-cation is received |
Yes[S. 12AB (4)] |
Modi-fication or adoption of objects not confirming conditions of registration |
Within a period of thirty days from the date of the said adoption or modi-fication; [S.12A(1)(ac)(v)] |
5 years[S. 12AB(1)(b)(ii)(A)] |
From the date of modifi-cation/ adoption |
Satis-faction about genuine-ness of activities+ Compliance of material legal require-ments[S. 12AB(1)(b)(i)] |
Yes[S. 12AB(1)(b)(ii)(B)] |
Final but subject to renewal after 5 years |
6 months from the end of month in which appli-cation is received |
Yes[S. 12AB (4)] |
All pending application not decided before 01-10-2020 |
Deemed application u/s 12A(1)(ac)(vi)[S. 12AB (2)] |
3 years[S. 12AB(1)(c) |
See Note |
None |
Yes[S. 12AB(1)(b)(ii)(B)] |
Provis-ional subject to final regist-ration after 3 years |
No[S. 12AB (4) + 12AB (2) ] |
Issues:
Taxability of Agri land received/given in gift, please guide me
whether agri land received in gift from non relative is taxable in the hands of Receiver?????????
Kinkini was regisered on 19.05.1989 and no amendments to MoU, R&R after that. Does it fall under Sn12A(I) ac ?
If so what ITR Form (not in Form 10 A) to be used. Is last date for applying 31.12.2020. What is the last date for re-applyimg for 80G and last date?