Easy to Register Charitable Trust By Filing 10AB Form

Arpit Kulshrestha

3 years ago

All About Form 10AB

The Finance Act, 2020 has initiated a law where all the trusts in the current scenario need to face the re-registration beneath section 12A and section 80G and the reapproval U/s 10(23C) and Section 35(1). To provide an effect towards the same the latest section 12AB has started with effect from the date 1st April 2020 which deals with the process of enrollment.

Note: The Income Tax Circular No. 7 extends the due date for registering a charitable trust by filing Form 10AB until June 30th, 2024. Read Circular

Before that, the trusts or institutions were enrolled beneath section 12AA or beneath section 12A. Now all these trusts would be needed to get themselves enrolled u/s 12AB.

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Now the income tax department would provide the unique registration number to all the charitable and religious institutions that provide a national database of all these trusts and institutions. One of the major essential specifications of the new provision which provides the advantage to the assessee is that the provisional enrollment would be furnished for the duration of 3 years without any investigation by the mentioned income tax council despite the case in which the activities of the entity are still not been started. No concern was there before in the former regime.

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

Prior to finding out about Form No. 10AB, let us see Form No. 10A via provided given article.

Forms and Rules on Applicable Section

Section 12A – Conditions for applicability of sections 11 and 12.
Sec 12AB – Mentions the procedure framework towards the enrollment with the income tax council to claim the privilege of the exemption u/s 11 and 12. (introduced w.e.f. AY 2022-2023)
Section 80G – Deduction for donations to specific funds, charitable institutions, and others.
Section 10(23C) – Application for registration or approval u/s 12A/10(23C)/80G
Rule 17A/11AA/2C – Application towards registration or approval
Form No. 10AB – All trust or institutions that obtain the provisional enrollment or approval for a 3-year duration would be needed to make the application in Form No. 10AB in 6 months post to the start of the charitable activities. These trusts would obtain a permanent enrollment post to make the application in Form No. 10AB. The same forms are in compliance with rule 17A/11AA/2C.
Form No.10AC – Order towards the registration or provisional registration or approval or provisional approval
Form No.10AD – Order for enrollment or authorization or cancellation

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Easy Guide to Trust Registration Under Section 12A and 80G

All the trusts or institutions who are currently enrolled beneath the former law, before 1st April 2021 or all funds or trust or institutions or any university or other educational institution or any hospital or other medical institution directed to in sub-clause (iv) or (v) or (vi) or (via) of section 10(23C) authorized beneath the first proviso or Trust/Institutions registered under section 12A or 12AA or Institution/ fund approved beneath 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 beneath the earlier law required to file the Form No. 10A before 31/03/2022.

What is the Time Limit for Trust Registration Under Section 12AB via the 10AB Form?

All the trusts or institutions who obtain the permanent enrollment or approval for the 5-year duration would be needed to make the application in Form No. 10AB after a period of 5 years.
The time duration limit to make the application in Form 10AB towards all the trust or institutions who held the provisional registration or approval for the duration of 3 years for the enrollment u/s 12AB would be prior to the subsequent 6 months before the expiry date or in 6 months of the start of the activities. The order for re-registration beneath section 12AB would be passed via PCIT/CIT in the duration of 3 months from the finish of the month where the application gets filled. The same registration would be valid for the 5-year duration.
An individual should know about the duration of the provisional enrollment which is 3 years and the same would not be extended automatically.
Form No.10AB is mutual for every trust and institution and despite the same is the only form that comes for the utilization to build the application for enrollment under section 80G.

What is the Method of Filing 10AB Form?

Various trusts are being enrolled with the provisional registration and want to apply for the permanent registration. Identical to that there were several trusts who were already performing the charitable activities but since they have not availed the enrollment beneath the former provision for which they had applied for the provisional enrollment. Application inside Form No. 10AB would be essential for all these trusts. Form No. 10AB reported that it has been activated on the income tax portal.

Easy Process for Filing Form 10AB

Log on to the E-filing portal of the income tax department at https://www.incometax.gov.in/iec/foportal
Proceed to Income Tax Forms and then “File Income Tax Forms” beneath the e-File tab
Choose the Form Name “Form 10AB” and the applicable Assessment Year from the drop-down list
Fill in the details as needed in the form and attach the needed and subjected attachments. The document needs are similar to those of Form No. 10A
Submit the form through the digital signatures or EVC as needed during furnishing the return. Form 10AB is filed in an online mode