Guide for NGO to Renewal or New Application for 12A & 80G Registrations

All NGO should must do needful for the renewal or new registration of 12AA & 80G. Through this this article we will discussed the important major changes brought in by the Finance Act 2020 by introducing new section 10AB replacing section 10AA and bringing in similar amendments in section 10(23C) and Section 80G.

These provisions pertaining to registration were originally made effective from 01-06-2020. Subsequently, due to the crisis caused by COVID-19, the Central Board of Direct Taxes (CBDT) announced to deferment of the implementation of the new procedure for approval and registration to 01-04-2021 and, therefore, the old process for approval under section 12AA, 80G and 10(23C) continued till 31-03-2021.

Now, from 1st April, 2021 the CBDT has made applicable the new provisions by introducing The Income Tax (6th Amendment) Rules, 2021 vide notification dated 26th March, 2021. The detailed guide to the renewal and fresh application process is as under:

FORM 10A : FOR PROVISIONAL REGISTRATION AND RE-VALIDATION OF EXISTING REGISTRATION

The Income Tax (6th Amendment) Rules, 2021 have notified Form 10A for making application for registration or provisional registration or intimation or approval or provisional approval.
1. Who can apply in Form 10A?
Form 10A shall be used for the following purposes
• Application for revalidation of registration/approval for existing organizations registered/approved under section 12A/12AA/10(23C)/80G.
• Application for provisional registrations/approval under section 12AB/10(23C)/ 80G
• Due Dates to apply in Form 10A
1. Trusts already approved/registered and their approval/ registration is continuing an on 01-04-2021 : On or before 30-06-2021
2. Trusts making application for provisional registration/ approval : one month before the commencement of the previous year from which the said approval is sought.

FORM 10AB : FOR FIVE YEAR REGISTRATION AND CONVERSION OF PROVISIONAL REGISTRATION

The Income Tax (6th Amendment) Rules, 2021 have notified Form 10AB for making application for registration or approval.
1. Who can apply in Form 10AB?
Form 10AB shall be used for the following purposes:
• Conversion of provisional registration into regular registration
• Renewal of registration/approval after five years
• Activating inoperative registration under section 10(23C)/10(46)
• Re-registration for modification of objects for entities registered u/s 12.
• Due Dates to Apply in Form 10AB
1. Conversion of provisional registration into regular registration : Before 6 Months of Expiry or 6 Months from commencement of activities whichever is earlier.
2. Renewal of registration/approval after five year : Before 6 Months of Expiry
3. Re-registration for modification of objects for entities registered under section 12AB : Within 30 Days from such modification.

PROCESS OF RENEWAL/ REGISTRATION

Step-1 : Applicant (NGO/Society /trust/other institutions) shall apply for renewal/new registration from Income Tax Portal using their income tax login credentials in Form No 10A (or 10 AB as the case may be) electronically within prescribed due dates as explained above. Applicant shall be required to submit the documents with the application as listed below in this article.
Step-2 : On submission of application, it shall be verified by the authorized signatory of the organization through Digital Signature if return of income is filed through Digital Signature otherwise through EVC.
Step-3 : On receipt of an application in Form No 10A (or 10 AB as the case may be), the PCIT or CIT, authorized by the Board, shall either approve or reject the application. In case the application is approved, the PCIT or CIT shall issue a 16 digit alphanumeric URN.

DOCUMENTS TO BE SUBMITTED

The application in Form No. 10A or 10AB shall be accompanied by the following documents:
(a) where the applicant is created or established, under an instrument, self-certified copy of such instrument creating or establishing the applicant;
(b) where the applicant is created or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) 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;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010, if the applicant is registered under such Act;
e) self-certified copy of existing order granting approval under clause (23C) of section 10;
(f) self-certified copy of order of rejection of application for grant of approval under clause (23C) of section 10, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not more than three preceding years) for which such accounts have been made up;
(h) where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not more than three preceding years) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(i) where the income of the applicant includes 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 prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not more than three preceding years) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(j) note on the activities of the applicant.

NGO DARPAN ID REQUIRED, Must obtain it for your NGO

Registration with Niti Aayog is mandatory to apply for grants under various schemes of Ministries/Departments/Governments Bodies.

Watch this video of Tax4wealth YouTube channel for all detail on 12A & 80G :   Watch Show on “Renewal of 12A & 80G, Fresh registration” With CA. Raghuveer

Note: This article is only for the information purpose, must consult expert before taking any decision. 

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