Form 10AB: Filing of Permanent registration for Charitable Trust

Last Updated On: March 8, 2022, 11:28 a.m.
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FORM 10AB: FILING OF PERMANENT REGISTRATION FOR CHARITABLE TRUST

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 an 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.

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, a 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, the 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 features of a new law that benefits the taxpayer is that provisional registration will be provided for a period of three years without detailed inquiry 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.

 

 

What is the new procedure for Registration under sections 12A & 80G:

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 an application for registration u/s 12AB through Form 10AB?

  • 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.
  • All the Trust/ Institutions who got the permanent registration or approval for a period of 5 years will be required to make an application in Form No. 10AB after a period of 5 years.
  • The Time limit for making an 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 than the Following 6 months prior to the date of expiry or Within 6 months of commencement of activities.
  • 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 trusts and institutions and even this is the only form that is to be used for making an application for registration under section


 

What is the procedure to file form 10AB:

  • Log on to the E-filing portal of the 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.

 

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