In union upkeep of 2020, the honourable finance minister introduced a major modify for granting exemption nether section 12AA, 12AB and donation nether department 80G to trust, society and other charitable establishments etc.

Compliances related to Charitable Trusts

Section 12AB is an amendment introduced by the ministry building relating to the compliance and registration procedure of religious or Charitable Trusts/ Institutions etc. which were earlier registered nether section 12AA of the Income Tax Act.

Section 12A deals with a one-time registration of trusts and other not for profit establishments granted by the Income Tax Department. The institution registered under this department is to be exempted from the income tax payment. Department 8 Companies, Trusts and NGO which have obtained 12AB registration enjoy exemption from paying income revenue enhancement on their surplus income.

Registration procedure of Religious or Charitable Trusts/Institutions

Eligibility criteria for registration of Charitable Trusts

All the currently registered or approved charitable and religious institutions (including NGOs) under the following sections-

  • Section 12A
  • Department 12AA
  • Section ten(23C)
  • Department 80G

are compulsorily required to switch to department 12AB for fresh registration in order to continue availing exemption under section 10 or 11.

Registration Process of Religious or Charitable Trusts

Case 1 :- Where a trust or institution is already registered under section 12A or 12AA

And so the entity should apply for new registration underneath section 12AB inside 30.06.2021, which will be valid for a menses of 5 years. Information technology begins from the assessment yr from which registration was granted before to the charitable trust or institution.

Case 2 :- Where a Charitable trust or institution is provisionally registered under section 12AB, which exist valid for 3 years from the grant of provisional registration. It begins from the start cess year in which provisional registration was granted.

The application for the above can be applied past filing Class 10A online on the income tax site incometaxindiaefiling.gov.in

First login into the portal using your ID and password. The form is available on the income revenue enhancement website under east file carte du jour tab → Income Tax Forms. Fill the required details in the form asking for:-

 (i) Name of the Trust, Gild, Religious and charitable establishments.

(two) PAN details of the to a higher place applicants.

(3) Registered Accost of the entity.

(four) Select the type of organization:- Religious/ Charitable/ Religious-cum-Charitable

(5) E-Mail and Mobile number of the authorized person by whatever name called

(vi) Legal Status of the entity

(7) Objects of the entity

(viii) Appointment of Modification of Objects, if any.

(9) Whether the application granted or registration earlier is rejected or cancelled? If yeah, details of the aforementioned should as well be provided.

(10) If the applicant is registered under FCRA, 2010? If yep, then details of the same should also be provided.

Documents required for Registration of Religious or Charitable Trusts:

Post-obit documents are required to be annexed with FORM 10A while registration:-

  • Registration Certificate and MOA / Trust Deed (two copies- cocky attested by the Managing Trustee)
  • No objection certificate from the Landlord where registered role is situated (if place is rented) and electricity nib of the same is required.
  • Copy of PAN carte du jour of Trust.
  • Books of Accounts, financial statements, ITR (if any) since inception or final 3 years.
  • List of Governing body or members of the trust/ Establishment
  • Trust Deed
  • Whatsoever other information / document as may exist asked by the Income Taxation Department.