Form 10A, Form 10AB, Section 12A registration procedures, Section 10(23C) approval procedures

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Form 10A, Form 10AB, Section 12A registration procedures, Section 10(23C) approval procedures

 

New Procedure & Documents for Registration of Charitable Trust

By the last year Budget-2020, the norms of governing charitable trust have been changed. One time recognition of charitable trust is replaced by the mechanism of 5 Years registration period. The fresh application is now required to be made with the Principal Commissioner or Commissioner for seeking approval or registration in prescribed form, as the case may be.

The new procedure and forms have been prescribed for registration of charitable trust.

  1. All existing Charitable Trusts & Institutions which were already approved under existing rules has to apply within 3 months from 1 April, 2021. The application has to be done in Form 10A.
  2. All Charitable Trusts & Institutions which were approved under newly inserted Rules as per Notification No. 19/2021 dated 26 March 2021 has to apply at least 6 months prior to expiry of the period of approval. The application has to be done in Form 10AB.
  3. All Provisionally approved Charitable Trusts & Institutions will be required to apply for re-registration at least 6 months prior to expiry of the period of approval. The application has to be done in Form 10AB. This will be applicable only after the trusts are registered under the new scheme of trust registration. In short, it will not at all be relevant till 31/03/2026
  4. In case of other charitable trust, it has to apply at least one month prior to the commencement of the financial year for which approval is sought. The application has to be done in Form 10A

For making the registrations, trust has to apply in Form No. 10A or 10AB. Following are the list of documents which are required:

  1. Note on the activities of the applicant.
  2. For Charitable Trusts & Institutions, created or established under an Act of the Central or State Government, self-certified copy of such instrument/trust deed creating or establishing the Charitable Trusts & Institutions.
  3. For Charitable Trusts & Institutions, created or established otherwise than under any other  instruments, self-certified copy of such of the document evidencing creation or establishment of the Charitable Trusts & Institutions.
  4. Self-certified copy of registration with Registrar of Charity Commissioner, companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be.
  5. Self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (42 of 2010), if the applicant is registered under such Act is also required for uploading.
  6. Self-certified copy of existing order granting approval u/s 10(23C).
  7. Self-certified copy of order of rejection of application for grant of approval u/s 10(23C), if any;
  8. For existing charitable trusts and institutions, self-certified copies of the annual accounts of the last years immediately preceding the year in which the said application is made. If the trust is in operation for less than 3 years, then it is required for a period of operation only.
  9. Where the Charitable Trusts & Institutions are covered by the provisions of section 11(4) or where income of the Charitable Trusts & Institutions includes profits and gains of business as per the provisions of section 11(4A) then the self-certified copies of the annual accounts and report of audit as per the provisions of section 44AB for the last three years immediately preceding the year in which the said application is made is also required to be uploaded

Signature & Submission:

  1. It may be noted that the new form will be available for uploading at the income tax portal from 1st April 2021.
  2. No physical submission is required for this.
  3. The Form shall be furnished electronically through digital signature, if the return of income is required to be furnished under digital signature.
  4. If digital signature is not there, it can be verified through electronic verification code.
  5. The Form shall be verified by the person who is authorized to verify the return of income under section 140 of the Income-tax Act, 1961.

[Those who want the professional service for registration can contact at taxtalknew@gmail.com, 86691-53607. Professional fees of Rs. 10,000/- only is charged as our gesture for the noble cause carried out by charitable trust activities. Account details will be mailed after receipt of documents as referred above]

 

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