What is the New Process of Renewal or Registration of 12A & 80G?

Now, from 1 April 2021, CBDT has implemented new provisions by introducing the notification of Income Tax (6th Amendment) Rules, 2021 on 26 March 2021. A detailed guide for New Process of Renewal or Registration of 12A & 80G is as follows :

Which is the Form that would be applicable for Provisional Registration and Re-Validation of Existing Registration?

The Income Tax (6th Amendment) Rules, 2021 has notified Form 10A to apply for registration or provisional registration or information or approval or provisional approval.

What is the purpose of Form 10A?

• Application for revalidation of registration / approval of existing organizations registered / approved under Section 12A / 12AA / 10 (23C) / 80G.
• Application for provisional registration / approval under Section 12AB / 10 (23C) / 80G

What is the time limit for applying of Form 10A?

• The trusts are already approved / registered and their approval / registration continues on 01-04-2021: on or before 30-06-2021
• Trusts applying for provisional registration / approval: 1 month before the commencement of the previous year out of which the said approval is sought.

Which is the Form that would be applicable for Five Years Registration and Conversion of Provisional Registration?

The Income Tax (6th Amendment) Rules, 2021 has notified Form 10AB to apply for registration or conversion of provisional registration.

What is the purpose of Form 10AB?

• Conversion of provisional registration to regular registration
• Renewal of registration / approval after five years
• Activating inoperative registration under Section 10 (23C) / 10 (46)
• Re-registration for modification of items for registered U / s 12.

What is the time limit for applying of Form 10AB?

• Conversion of provisional registration to regular registration: 6 months before expiry or 6 months before the commencement of activities, whichever is earlier.
• Renewal of registration / approval after five years: before 6 months of expiry
• Re-registration for modification of items for entities registered under section 12A: within 30 days from such amendment.

What is the New Process of Renewal or Registration of 12A & 80G Certificates?

• Step-1: Applicants (societies or other institutions) will apply for renewal / registration from Income Tax Portal using Form No 10A (or 10AB) of their Income Tax Entry Credentials. The applicant has to submit the documents along with the application listed below in this article.
• Step-2: On submission of the application, it will be verified by the authorized signatory of the organization through digital signature if the return of income is filed through digital signature otherwise through EVC.
• Step-3: On receipt of the application in Form No.10A (or 10AB as the case may be), the PCIT or CIT authorized by the Board will accept or reject the application. If the application is approved, PCIT or CIT will issue a 16-digit alphanumeric URN.

Which documents needs to be submitted for Renewal or Registration of 12A & 80G?

Application in Form No. 10A or 10AB will be accompanied by the following documents:

1. Where the applicant is created or established under an instrument, a self-attested copy of such instrument creating or establishing the applicant;
2. Where the applicant is created or established, otherwise under an instrument, self-attested copy of the document evidencing the creation or establishment of the applicant;
3. Self-attested copy of registration certificate with the Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
4. Self-attested copy of registration under the Foreign Contribution (Regulation) Act, 2010, if the applicant is registered under such Act;
5. Self-attested copy of the existing order under clause (23C) of section 10;
6. Self-attested copy of the order of rejection of the application for approval under section 10 (23C), if any;
7. Where the applicant has been in existence during any year or years before the financial year in which the application for registration has been made, self-attested copies of the annual accounts of the applicant pertaining to such prior year or years (not more than three preceding years) for which such accounts have been made;
8. Where a business undertaking is held by the applicant in accordance with the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years before the financial year in which the application for registration is made in such business Self-attested copies of the annual accounts of the undertakings, relating to such prior year or years (not more than three years) for which such accounts have been created and self-attested copy as per the report of audit for such period Provisions of section 44AB for;
9. Where the income of the applicant includes the profits and gains of business as per the provisions of sub-section (4A) of section 11 and the applicant has been in existence during any year or years before the financial year in which the application is registered. However, there are self-attested copies of annual accounts of such business which are of such prior year or years (not more than three prior years) for which such accounts have been created and self-attested copy of the audit report. As per the provisions of section 44AB for such period;
10. Note on the activities of the applicant;

Is DARPAN ID mandatory for filing of Form 10A or 10AB?

Registration with the Niti Aayog is mandatory for grants under various schemes of the Ministry / Departments / Governments bodies. The NGO-DARPAN portal has been launched as an initiative of the Prime Minister’s Office, to create and promote a healthy partnership between the NGO and the government. It is an e-governance application by NITI Aayog to electronically maintain data and transparency about NGOs in the country.

Before filing Form 10A or Form 10AB, NGOs will have to register themselves on the NGO-DARPAN portal to obtain a Unique Identification Number (UIN) by furnishing the necessary details such as the organization’s registration number, PAN of the organization, Aadhaar and office details of office bearers / trustees and PAN details.

What is the time limit to pass the order of Renewal or Registration of 12A & 80G?

• Existing Non-profitable entities already approved under the previous rules:

Non-profitable entities shall apply within 3 months from 1 April 2021 in Form 10A. Approval shall be effective from the financial year in which approval was originally granted and the order shall be passed before the expiry of the period of 3 months from the end of the month in which the application was received.

• Non-profitable entities approved under the newly inserted rules:

Non-profitable entities approved under the newly inserted rules through notification 19/2021 dated 26 March 2021 will be in force at least 6 months before the end of the approval period in Form 10AB. The approval will be effective from the financial year in which the registration application is made and the order will be passed before the end of the 6-month period from the end of the month in which the application was received.

• Provisionally approved Non-profitable entities:

Non-profitable entities will apply in Form 10AB at least 6 months before the end of the approval period. The approval will take effect from the financial years for which provisional approval was received and the order will be passed before the end of the 6-month period from the end of the month in which the application was received.

• Non-profitable entities whose applications made under the existing rules and pending before the Principal Commissioner or Commissioner:

All applications made under the existing rules and pending before the Principal Commissioner or Commissioner, on which no order has been passed before the 1st day of April 2021, shall be deemed to be an application made under clause (iv) / any other matter shall apply at least one month before the commencement of the financial year for which approval has been sought in Form 10A. The approval will be effective from the financial year in which the registration application is made and the order will be passed before the expiry of 1 month from the end of the month of receipt of the application.

Sources:

Notification 19/2021 dated 26 March 2021 Click Here