Charitable or religious trust or institution can apply for registration under section 12A online.
For registration of Charitable or religious trust or institution require to file Form-10A.
1. Certified copy of the instrument under which the trust/institution was created/established, if applicable.
2. Certified copy of the document evidencing the creation of the trust or the establishment of the institution, if applicable.
3. Certified copy of registration with RoC/Registrar of Firms & Societies/Registrar of Public Trusts, whichever applicable.
4. Certified copy of the annual reports of the trust/institution for a maximum three immediately preceding financial years, if applicable
5. Note on activities conducted by the Trust/institution
Form 10A is a form which should be filed by entities which wish to nake a registration under Section 12A. The process for applying for Section 12A registration and the process of Form 10A filing has been made exclusively online. The process of making online filing is possible only with a digital signature. For making an application under Section 12A, the digital signature of the founder or author of the trust should be affixed. To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application should compulsorily be made in the online mode. The application shall be addressed to the Commissioner of Income Tax along with the necessary documents.
A NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The Income Tax Act has certain provisions, which offer tax benefits to the "donors". All NGO's should avail the advantage of these provisions to attract potential donors. Section 80G is one of such sections.
if an NGO gets itself registered under section 80G then the person or the organisation making a donation to the NGO will get a deduction of 50% from his/its taxable income. Earlier registration under 80G was given as one-time registration unless any specific restrictions are provided in the registration certificate itself but Finance Act 2020 has made some substantial changes in registration process and period for which approval will be given.
An application for fresh registration under section 80G will be given to Principal Commissioner or Commissioner. A provisional registration for 3 years will be given to organisations. The registration once granted shall be valid for three years from the Assessment Year from which the registration is sought. Application for renewal of such new registration needs to be submitted
Earlier the approval u/s 80G was valid for perpetuity. The Finance Act 2020 provides that all the existing 80G approvals needs to be revalidated and the application for the same should be submitted within three months from 1st April 2021 i.e. on or before 30th June, 2021. As per amended provisions, the revalidation of registrations will be valid for a period of 5 years and thereafter approval for 80G has to be again applied for at least 6 months prior to the expiry of the registration.
|Timeline to make application
|Trusts already approved/registered and their approval/registration is continuing an on 01-04-2021.
|On or before 31-08-2021
|Trusts making application for provisional registration/approval
|1 month before the commencement
|Conversion of provisional registration into regular registration
|At least 6 months before the expiry or within 6 months of commencement of its activities, whichever is earlier
|Renewal of registration/approval after five year said registration period.
|At least 6 months prior to expiry of the said registration period
a) Self-certified copy of incorporation document of Trust/Societies (created under instrument or otherwise)
b) 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;
c) self-certified copy of FCRA registration, if the applicant is registered under such Act;
d) self-certified copy of existing order granting approval under clause (23C) of section 10;
e) In case of existing entities, copies of annual accounts for the period not exceeding 3 years immediately preceding the year in which the application is made
f) Where the income of the entity includes profits and gains of business as per the provisions of sub-section (4A) of section 11, copies of annual accounts and audit report u/s 44AB for 3 years immediately preceding the year in which the said application is made
g) Details of activities since its inception or last three years whichever is less.
For approval under Section 80G the following conditions are to be fulfilled :
a) The NGO should not have any income which are not exempted, such as business income. If, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business.
b) the bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than charitable.
c) the NGO is not working for the benefit of particular religious’ community or caste.
d) the NGO maintains regular accounts of its receipts & expenditures.
e) the NGO is properly registered under the Societies Registration Act 1860 or under any law corresponding to that act or is registered under section 8 of the Companies Act 2013.
The organisations applying for registration/ revalidation as per the amended provisions of section 80G, is mandatorily required to give the details of its Registration number with Darpan portal of Niti Aayog
This is also mandatory in the situation where the applicant organisation receives or intends to receive any grantor assistance from either the Central Government or state Government.
On receipt of the application under 10A, the PCIT or CIT shall pass an order in writing granting approval in Form No. 10AC and issue a sixteen-digit alphanumeric Unique Registration Number (URN) to the applicants. The PCIT/ CIT is also entitled to demand further documents from the applicant if the need for the same is felt, or may reject the application after giving an opportunity of being heard. The rejection order will also be passed in Form No. 10ACThe registration accorded to the NGO will be valid as per the new provisions of act amended through Finance Act 2020.
On receipt of application under 10AB, the order of registration or rejection or cancellation of registration shall be in Form No. 10AD and in case if the registration is granted, sixteen-digit alphanumeric number URN shall be issued by the PCIT or CIT. In this case also, PCIT/ CIT is entitled to demand further documents from the applicant to satisfy himself about the genuineness of activities of the trust or institution and the compliance of such requirements of any other law for the time being in force by the trust or institution as are material to achieve its objects. To summarize the above, we can say that the timelines to issue order to grant registration/provisional registration/revalidation of existing registrations are as follows:
|Category of entity
|Time limit for filing application for registration
|Time limit for passing order
|For existing 80G registered entities
|Within 3 months from 1st April, 2021 i.e. up to 31st August, 2021
|Within 3 months from the end of the month in which the application is received
|In any other case (including fresh provisional registration)
|Atleast 1 month before commencement of the previous year relevant to assessment year from which the said registration is sought
|Within 1 month from the end of the month in which the application is received
|Trusts or institutions which are registered under new provisions of section 80G and the period of the said registration is due to expire
|Atleast 6 months before the expiry of the said period
|Within 6 months from the end of the month in which the application was received
|Trusts opting for provisional to final registration for 5 years
|Atleast 6 months before the expiry of the provisional registration or within 6 months of commencement of its activities, whichever is earlier
|Within 6 months from the end of the month in which the application was received
There is ceiling limit up to which the benefit is allowable to the donor. If the amount of deduction to a charitable organisation or trust is more than 10% of the Gross Total Income computed under the Act (as reduced by income on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G.
In other words, while computing the total income of an assessee and for arriving at the deductible amount under section 80G, first the aggregate of the sums donated has to be found out. The 50 per cent of such donations has to be found out and it should be limited to 10 per cent of the gross total income. If such amount is more than 10 per cent of the gross total income, the excess will have to be ignored.