Relevant Section, Rule and Forms

Section 12A – Conditions for applicability of sections 11 and 12.

Sec 12AB Prescribes the procedure framework for registration with the income-tax authorities to avail the exemption u/s 11 and 12.(introduced wef AY 2022-2023)

Section 80G – Deduction in respect of donations to certain funds, charitable institutions, etc

Section 10(23C) – Application for registration or approval u/s 12A/10(23C)/80G

Rule 17A/11AA/2C – Application for registration or approval

Form No. 10AB – All the Trust/ Institutions who got the provisional registration or approval for a period of 3 years will be required to make application in Form No. 10AB within 6 months after the commencement of the charitable activities. Such trusts will be getting permanent registration after making an application in Form NO. 10AB. This Form is in compliance with Rule 17A/11AA/2C.

Form No.10AC – Order for registration or provisional registration or approval or provisional approval

Form No.10AD – Order for registration or approval or rejection or cancellation

Form NO. 10AB

INTRODUCTION

The Finance Act, 2020 has introduced a new provision as a result of which all existing trusts have to undergo re-registration under Section 12A and Section 80G and Re-Approval U/s 10(23C) and Section 35(1). To give effect to this, new section 12AB has been inserted with effect from 1st April, 2020 dealing with the procedure of registration. Earlier, trusts or institutions were registered under section 12AA or under section 12A. Now, all such trusts will be required to get themselves registered u/s 12AB.

Now, income-tax Department shall issue a Unique Registration Number to all the charitable and religious institutions which will serve as a National Database of all such trusts and institutions. One of the key feature of new law that benefits the taxpayer is that provisional registration will be provided for a period of three years without detailed enquiry by the prescribed income-tax authority even in cases where activities of the entity are yet to begin. There was no such concept in the earlier regime.

The first application (be it provisional registration or permanent registration) for 12A or 80G has to be done in Form No. 10A. Subsequent application for renewal or permanent registration has to be done in Form No. 10AB.

Before knowing about Form No. 10AB, let us know about Form No. 10A through below mentioned article

New Registration Process for Existing Trust/Societies: Form 10A

New Procedure for Registration u/s 12A & 80G – Trust

All the trust/Institutions who are already registered under the earlier law , before 1st April 2021 or all fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or (v) or (vi) or (via) of section 10(23C) approved under the first proviso or Trust /Institutions registered under section 12A or 12AA or Institution/ fund approved under the clause (vi) of section 80G(5) or research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) of section 35(1) or all those who are not registered under the previous law required to file the Form No. 10A before 31/03/2022.

What is the Time limit for making application for registration u/s 12AB through Form 10AB?

  • All the Trust/ Institutions who got the permanent registration or approval for a period of 5 years will be required to make application in Form No. 10AB after a period of 5 years.
  •  The Time limit for making application in Form 10AB for all the Trust/ Institutions who got the provisional registration or approval for a period of 3 years for registration u/s 12AB shall be earlier of the Following 6 months prior to the date of expiry or Within 6 months of commencement of activities. The order for re registration under section 12AB shall be passed by the PCIT/CIT within a period of three months from the end of the month in which the application is filed. This registration shall further remain valid for a period of 5 years.
  • One must carefully note that the life of provisional registration is 3 years only and it cannot be extended automatically.
  • Form No. 10AB is common for all the trusts and institutions and even this is the only form which is to be used for making an application for registration under section 80G.

Permanent Registration of Charitable Trust by filing Form No. 10AB

How to file Form NO. 10AB:

There are a lot of trusts who have provisional registration and want to apply for permanent registration. Similarly, there were a lot of trusts who were already doing charitable activities but since they have not obtained registration under the old regime, they have applied for provisional registration. For all such trusts, the application in Form No. 10AB would be mandatory. Form No. 10AB has been notified, it has been activated at the income tax portal.

Procedure for Filling 10AB

  • Log on to the E-filing portal of income tax department vide https://www.incometax.gov.in/iec/foportal
  • Go to “Income Tax Forms” and then “File Income Tax Forms” under e-File tab.
  • Select the Form Name as “Form 10AB” and relevant Assessment Year from the drop down list.
  •  Fill in the details as required in the form and attach the required and applicable attachments. The document’s requirements are the same as that of Form No. 10A.
  •  Submit the form using digital signatures or EVC as required while return filing. Form 10AB is furnished online only.

Download format of Form No. 10AB PDF 

Author Bio

Qualification: CA in Practice
Company: JAIN PC and ASSOCIATES
Location: Ahmedabad, Gujarat, India
Member Since: 24 Jun 2021 | Total Posts: 16
Hi there!! Myself CA Mohit Loonkar a practising Chartered Accountant from Ahmedabad. I can be reached at [email protected] LinkedIn: https://www.linkedin.com/in/camohitloonkar/ View Full Profile

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