What is form 10B?
All Trusts/Institutions that received permanent registration or approval for a period of 5 years will be required to submit an application in Form No.10AB after that time. 2. All Trusts/Institutions that have received provisional registration or approval for a period of three years must submit an application in Form No.10AB within six months of the start of charitable activities. After submitting Form No.10AB, such trusts will be granted permanent registration. If the activities are not started, the trust/institution must apply again at least 6 months before the three-year provisional registration period expires. This series of provisional registrations is likely to continue until the trust begins its charitable activities. 3. It is important to note that provisional registration is only valid for three years and cannot be automatically extended. 4. Form No.10AB is used by all trusts and institutions and is the only form that can be used to apply for registration under Section 80G.
What is the procedure for submitting the 10AB form?
Several trusts have provisional registration and wish to apply for permanent registration. Similarly, there were several trusts that were already performing charitable activities but had not received enrolment under the previous provision for which they had applied for provisional enrolment. All of these trusts would require an application in Form No. 10AB. The Form No. 10AB reported that it had been activated on the income tax portal.
What is Form 10AB and why is it used?
Existing trusts registered under Section 12AB of the Income Tax Act that wish to claim exemption under Sections 11 and 12 must obtain registration under the Income Tax Act by filing Form No. 10AB. A trust that has been registered under the new law u/s 12AB of the Income Tax Act must apply for re-registration in Form 10AB. The Finance Act 2020 introduced a new concept of provisional registration to address the practical issue of difficulty in granting registration or approval before a trust or institution begins actual charitable activities. Form Nos. 10AB shall be furnished electronically online through digital signature if the income return is required to be furnished under digital signature, or through electronic verification code if Digital Signature is not available. Form Nos. 10AB must be verified by the person authorised to verify the income return under section 140, as applicable.
Who is eligible to apply using Form 10AB?
According to the new law, Form 10AB can be used for registration by entities that are provisionally registered u/s 12AB of the Income Tax Act and the period of approval is due to
Fund, trust, or institution, or university or other educational institution, or hospital or other medical institution referred to in sub-clause (iv) or (v) or (vi) or (via) of section 10(23C) approved under the first proviso effective April 1, 2021
Trust/Institute registered under section 12AB
Institution/fund approved under clause (vi) of section 80G (5), effective April 1, 2021.
The following documents must be submitted with the Application:
Under what circumstances is the applicant created or established?
● Where the applicant is created or established by an instrument, a self-certified copy of the instrument that created or established the applicant;
● Where the applicant is created or established other than through an instrument, a self-certified copy of the document evidencing the applicant’s creation or establishment;
● Copy of self-certified registration with the Registrar of Companies, Registrar of Firms and Societies, or Registrar of Public Trusts
● If the applicant is registered under the Foreign Contribution (Regulation) Act, 2010, a self-certified copy of such registration is required.
● A self-certified copy of an existing order granting registration under section 12A, 12AA, or 12AB
● A self-certified copy of the order rejecting the application for registration under section 12A, 12AA, or 12AB.
● Where the applicant has been in existence for any year or years prior to the financial year in which the application for registration is made, self-certified copies of the applicant’s annual accounts relating to such prior year or years (not more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up are required.
● Self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) where the applicant holds a business undertaking 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
● Where the applicant’s income includes business profits and gains as defined in sub-section (4A) of section 11 and the applicant has been in existence for 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 years immediately preceding the year in which the said application is made)
● Self-certified copy of the documents proving the adoption or modification of the objects. Notes on the applicant’s activities
The Form 10AB Filing Deadline
● After 5 years, all trusts or institutions that have obtained permanent enrolment or approval for the 5-year period must submit an application in Form No. 10AB.
● The time limit for making an application in Form 10AB to all trusts or institutions that have held provisional registration or approval for a period of three years for enrolment under Section 12AB is six months before the expiry date or six months after the start of the activities. The order for re-registration under Section 12AB would be issued by PCIT/CIT within three months of the application being received.
● The same registration would be valid for 5 years.
● Individuals should be aware that the provisional enrolment period is only three years long and will not be automatically extended.
● Form No.10AB is mutual for all trusts and institutions, but it is the only form available for use in constructing an application for enrolment under Section 80G.
How to File Form 10AB on the New E-Filing Portal
The following is the procedure for filing Form 10AB online through the new e-filing income-tax portal:
● The trust/NGO must access the new e-filing portal and log in by entering the user ID and password. Only after successfully logging in can the user use Form 10AB.
● To proceed, click ‘Continue,’ followed by ‘Let’s Get Started.’ The application form 10AB will appear. Please provide the following mandatory information:
● Finally, as per Rule 17A(3)/, the form must be verified by DSC or EVC (4). The name, father’s name, constitution type, and capacity will all be prefilled. After filling out the form, click the attach button to upload all documents.
● Once the information/data has been entered, click the ‘Save’ button. When all of the sections are completed, they will be green-ticked and the status will be displayed as ‘completed.’
● Submit the form using digital signatures or EVC as needed when submitting the return. Form 10AB is submitted online.
● Form 10AB must be verified by the person authorised to verify the applicant’s income tax return under section 140.