NEW RULES FOR TRUSTS & NPO’S REGISTRATION U/S 12AB & 80G
Notification no. 19/2021 dated 26/03/2021 issued by CBDT, pertaining to procedure for registration of fund/trust/charitable institutions etc.
➢ Notification Substitutes/Amends/Inserts rules related to registration of fund/trust/charitable institutions. All NGOs that are already APPROVED under Section 12A/12AA and Section 80G as of this date & all such NGOs who shall be seeking PROVISIONAL REGISTRATIONS with the Department shall file their Applications on Form-10A.
➢ All NGOs having provisional registrations shall at the time of seeking Final Registrations + All NGOs in the future at the time of applying and obtaining subsequent registrations shall file their applications on Form-10AB.
➢ Form-10G (for applying Registration u/s 80G) has been done away with & Form-10A or Form-10AB is a common Form for both types of Registrations applied either Section 12AB and/or Section 80G Registrations.
➢ Under the amended process, approval shall be granted for a period of 5 years, and the Non-profitable entities will be required to re-apply for registration in the manner and the period as prescribed the provision of the Act.
➢ Existing Non-profitable entity which is already approved under the erstwhile provisions of the Act is also required to make an application for registration in the prescribed form within 3 months from 1 April 2021.
➢ Income Tax Department shall grant Registrations under section 12AB and Section 80G on Form No. 10AC & in case of application on Form-10AB than on Form-10AD.
➢ Registrations granted on Form-10AC and Form-10AD shall carry a 16-digit alphanumeric Unique Registration Number (URN).
➢ All Trust/ Societies/ Not-Profit Making Section-8 Companies granted Section 80G and Section 35(1) Registrations shall be required to file Online on Form-10BD; an “Annual Statement of Donations received” latest by May-31 immediately following the financial year in which the donation is received.
➢ The first such return/statement shall be applicable for the FY 2021-2022.
➢ The NGO shall be required to issue a “Certificate of Donation” to the Donor on Form-10BE for the amount of Donation given; (just like a TDS Certificate is issued to the payee).
➢ All Research Association, Universities, Colleges or other institutions or companies which are approved under section 35(1) as of this date shall be required to intimate under the fifth proviso to Section 35(1) to the Income Tax Department on Form No. 10A latest by June-30-2021.
➢ All Research Associations, Universities, Colleges, or other institution or Company shall apply for approval of their projects under (i) Scientific Research; (ii) Social Science Research or (iii) Statistical Research on one Common Form now i.e. Form-3CF and all other existing Forms 3CF-I, 3CF-II, and 3CF-III have been done away with.
➢ Existing Non-profitable entities already approved under existing rules shall apply within 3 months from 1 April 2021 in Form 10A. Approval shall be effective from the financial year in which approval was originally granted and the order shall be passed before the expiry of the period of 3 months from the end of the month in which the application was received.
➢ Non-profitable entities approved under newly inserted Rules through notification 19/2021 dated 26 March 2021 shall apply at least 6 months prior to the expiry of the period of approval in Form 10AB. Approval shall be effective from the financial year in which registration application is made and the order shall be passed before expiry of the period of 6 months from the end of the month in which the application was received.
➢ Provisionally approved Non-profitable entities shall apply at least 6 months prior to the expiry of the period of approval in Form 10AB. Approval shall be effective from the financial years for which provisional approval was received & the order shall be passed before the expiry of the period of 6 months from the end of the month in which the application was received.
➢ All applications made under the existing rules and are pending before the Principal Commissioner or Commissioner, on which no order has been passed before the 1st day of April 2021, shall be deemed to be an application made under clause (iv)/any other case shall apply at least one month prior to the commencement of the Financial year for which approval is sought in Form 10A. Approval shall be effective from the financial year in which registration application is made & order shall be passed before expiry of the period of 1 month from the end of the month in which the application was received.
Documents required for filing application:
1. For an entity, created or established under an instrument, self-certified copy of such instrument creating or establishing the entity.
2. For an entity, created or established otherwise than under an instrument, self-certified copy of such of the document evidencing creation or establishment of the entity.
3. Self-certified copy of the registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be.
4. Self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (42 of 2010), if the applicant is registered under such Act;
5. Self-certified copy of existing order granting approval under clause (23C) of section 10/12A/12A/12AB;
6. Self-certified copy of the order of rejection of application for grant of approval under clause (23C) of section 10/12A/12AA/12AB, if any;
7. For existing entities, self-certified copies of the annual accounts of three years immediately preceding the year in which the said application is made;
8. Where an undertaken is by the entity as per the provisions of sub-section (4) of section 11 and/ or where the income of the entity includes profits and gains of business as per the provisions of sub-section (4A) of section 11, self-certified copies of the annual accounts and report of audit as per the provisions of section 44AB of three years immediately preceding the year in which the said application is made;
9. Note on the activities of the applicant
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