Surprisingly, The Central Board of Direct Taxes (CBDT) has tabled a new form i.e. Form 10A for the registration/ intimation/approval/provisional approval. of charitable trusts that are compulsory. A new clause (ac) has been added in subsection (1) of section 12 A that has been effective from April 1, 2021.
This clause states that although anything may be mentioned in clauses (a) to (ab), the person who has received income and who wants to avail of the benefit as per sections 11 & 12 has to make an application in the prescribed standard form i.e. 10A or 10B and in a stated manner to the Principal Commissioner or Commissioner, for the purpose of registration of the trust or institution.
Starting with a trust or Institution that is already registered under section 12A or 12AA, the mentioned Form and timeline for making an application for registration in Form No.10A within 3 months from April 1, 2021.
Latest Updates
- CBDT has issued Circular No. 07/2024 extending the due date for filing Form 10A/ Form 10AB under the Income-tax Act, 1961 upto 30th June 2024.
Then (Secondly) comes the case where a trust or institution is already registered as per section 12AB and the time of the aforesaid registration is due to expire, the mentioned Form and timeline for making an application for registering is Form No. 10AB at least 6 months before expiry.
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Thirdly, where the trust or institution has been registered on a provisional basis as per Section 12 AB (Section 12 AB is new and has been made effective from April 1, 2021), the mentioned form and timeline for making the application is Form No. 10AB through which application for registration should be made at least 6 months before the expiry of the tenure of the provisional/temporary registration or within 6 months of starting of its operations, whichever is earlier.
Fourthly, when the registration of the trust or institution, due to the first provision to sub-section (7) of section 11, has become inoperative, the prescribed Form and timeline for making an application for registering is Form No. 10AB at least 6 months before the commencement of the assessment year from which the aforesaid registration is sought to be made operative.
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Fifthly, when the trust or the institution has changed its objectives which are not by the criteria of registration, the mentioned form and timeline for making an application for registration is Form No. 10A and that should be made at least 1 month before the commencement of the previous year that is relevant to the assessment year from which the aforesaid registration is sought, given the fact that the trust or institution is registered under section 12AB.
At Last, if there is any other case that includes provisional registration also, the mentioned Form and timeline for making an application for registering is Form No. 10A, at least 1 month before the start of the previous year that is relevant to the assessment year from which the said registration is sought given the fact that the trust or institution is registered under section 12 AB. It is worth mentioning here that the existing Form 10A has been substituted by the new Form 10A.
6 Major Changes in Form 10A or 10AB
First: In case the PAN or Aadhaar number of the concerned person is not available, he/she can provide the Passport number, the Elector’s photo identity number, the Taxpayer Identification Number of the country wherein the person resides, Driving License number, or Ration card number.
Second: Now applicants must provide details of registration under the FCRA Act or on the DARPAN Portal or as per any provision of the Income-tax Act.
Third: It is necessary for applicants who have filed an Income Tax Return for the previous assessment year.
Fourth: The change is as follows – In the past, the 10G form for 80G registration had been withdrawn; now the same can be applied with Form 10A or 10AB as per the facts and circumstances of the case.
Fifth: Applicants must furnish details of Income & Expenditure of any religious activity. And, in addition, details of Assets & Liabilities and Income.
Sixth: There is also a requirement for details related to Assets & Liabilities, and Income by the applicant.
