All about Form 10AB in the context of Charitable Trusts:


All about Form 10AB in the context of Charitable Trusts:


1.  Introduction:

Every trust/charitable society/ NGO that wishes to claim the tax exemption benefits has to file Form 10A to seek fresh registration under 80G and 12A and this form can be filed by the assessee once in their whole lifetime to obtain a registration or approval order.

Finance Act 2000 introduced the concept of permanent and provisional registrations, so the Form 10AB has come into play for subsequent compliance with the Income Tax Department, i.e., for renewal or permanent registration.

Charitable trusts, institutions, NPOs/ NGOs that are exempted under the Sections 10 (23C), 12A, 12AA, 35 or 80G of the Income-tax Act, 1961 are required to reapply for the same and obtain a registration under a new Section 12AB.

2.  Applicability:

All trusts and institutions with permanent registration or approval must make an application in Form 10AB after five years, which is the approval period of initial registration.

All trusts and institutions with provisional registration for a period of three years will have to apply with Form 10AB within 6 months after the commencement of their activities. These organisations can get permanent registration only after making an application with Form 10AB.

In case of modification in Memorandum of the Society/Trust Deed, Form 10AB has to be filed within a period of 30 days from the date of such modification.

In case of activation of inoperative registration, Form 10AB has to be filed at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative.

3.  Documents required:

Self-certified copy of the Memorandum of the Society/ Trust Deed.

The latest Audited financial statements of trusts/charitable societies/ NGO of last 3 years.

KYC of all the trustees or members, as the case may be.

Details of the activities of the trust/charitable societies/ NGO.

Self-certified copy of an existing order granting registration or approval under Section 12A or 80G of the Income-tax Act.

Self-certified copy of the documents evidencing adoption or modification of the objects.

4.   Process of filing:

Log on to the official e-filing portal of the Income Tax Department through its websites Check the e-file tab to access ‘File Income Tax Forms’ and choose ‘Form 10AB’ and the relevant assessment year fill in the requisite details in the form and attach the necessary documents (which are similar to that of Form No. 10A) Provide digital signatures or EVC as required during the furnishing of the return and submit the form