Re-registration of charitable trust

The Central Board of Direct Taxes has finally come out with the new Rules and the new Forms for Revalidating or Renewal of existing tax exemption under 12AA & 10(23C) and tax deductions under 80G.

This will come into effect from 1st April 2021 and the process must be completed by charitable trusts and institutions by 30th June 2021.

Given below the important summary of the notification dated March 26, 2021.

·         Trust require to  fill online application Form 10A ( Clause(i) or (vi   of Section 12A  and 10AB ( Clause(ii) or (iii) or (iv)  of Section 12A.

 

·         Require to submit the following document

 

Ø  Self certified copy of trust deed & other statutory registrations

Ø  Self certified copy  of existing approvals.

Ø  Self certified copy of financials of last 3 years.

Ø  Note on activities.

 

·         Form 10A or 10AB should be digitally signed by person as per section 140A.

 

·         PCIT will verify the documents and after satisfaction  grant registration with sixteen digit alphanumeric  registration number.

 

·         If PCIT find any defect in the application then after providing the opportunity may cancel the registration by issuing Form 10AC or 10AD.

 

·         Separate application to be made for  getting approval u/s 80G.

 

·         Similar process to be followed for registration under section  10(23C) &  section 35.

 

Further there is new rule where trust have to update the details of donations received u/s 80G.

·         Trust have to update details in Form 10BD.

 

·         Receipt should be issued to donor in Form 10 BE.