All about Form No. 10AB: Final registration of the Charitable Trust for Section 80G

Trust regulation under the Income Tax Act – 1961 has been changed totally. A new mechanism is given for trust now.

Now, all Trusts, Societies, Not For Profit Organisation, Ngo, Etc, which wants to get registered under Section 80G of Income Tax Act, 1961.

1.  Earlier i.e., prior to 31.03.2021, Trusts, Societies, Not for Profit Organization, NGO, etc.has to registered once under Section 80G of Income Tax Act and the registration is valid for lifetime until the same is specifically cancelled by Income Tax department.

2.  Now, from 01.04.2021, this process has been changed and now the registration has been granted for a limited period of time, which is required to be renewed on regular basis.

3.  As per new process, all existing Trusts, Societies, Not for Profit Organization, NGO, etc.which are registered under Section 80G as on 31.03.2021, is required to apply for Provisional registration on or before 30.06.2021 in Form 10A.

4.  Even the new Trusts, Societies, Not for Profit Organization, NGO, etc., can apply for Provisional registration. The validity period of provisional registration is 3 years; however, Trusts, Societies, Not for Profit Organization, NGO, etc., is required to apply for Final registration in Form 10AB under Section 80G of Income Tax Act, 1961 at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier.

5.  In short, all existing Trusts, Societies, Not for Profit Organization, NGO, etc.or  even newly approved Trusts, Societies, Not for Profit Organization, NGO, etc.has to apply for Final Registration under Section 80G in Form 10AB within six months of commencement of its activities.

6.  An application for Final registration has to be done in Form No. 10AB. If it is approved then it is valid for 5 years.

Documents required for Filing application in Form 10AB.

As per rule 11AA, following documents are required to be attached while Filing application in Form 10 AB.

(a) here the applicant is created, or established, under an instrument, self-certified copy of the instrument;

(b) where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;

(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;

(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act;

(e) self-certified copy of existing order granting registration under clause (vi) of subsection (5) of section 80G;

(f) self-certified copy of order of rejection of application for grant of approval under clause (vi) of sub-section (5) of section 80G, if any;

(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;

(h) note on the activities of the applicant.

Note: It may be noted that if the applicant receives or intends to receive any grant or assistance from either the Central Government or State Government then the registration number with Darpan Portal of the Niti Aayog should be mandatorily provided by the applicant.

 

There are certain additional Detail which is required to be provided in Form 10AB which are not required to be reported at time of Provisional Registration in Form 10A. The same is as under:

1. Details of School/ Institutions/ religious places which are being managed/ controlled/ administered/ owned by Trusts, Societies, Not for Profit Organization, NGO, etc.

2. If Trusts, Societies, Not for Profit Organization, NGO, etc.is doing any business activity, then business code of that activity needs to provide

3. Details of all bank accounts in the name of Trusts, Societies, Not for Profit Organization, NGO, etc., needs to provide

4. Details of all land or building or both held by the applicant

5.  Details of expenditure incurred on religious activities (If any)

After receipt of information, the Authorised CIT will verify the details and after satisfaction will issue Final registration certificate which have 5 Years validity.