Saturday, April 13, 2024

Filing Form 10A and Form 10AB for Trusts, Charities, and NGOs

  • Form 10A is for entities like trusts, charitable societies, or NGOs to register for tax exemption benefits under sections 80G and 12A. It is filed once in a lifetime by an entity to get either a provisional or permanent registration.

  • Form 10AB is used for subsequent compliance such as renewal of registration or converting from provisional to regular registration after changes in the organization or reactivating inoperative registrations.

Key Details:

  • Permanent and Provisional Registrations: Before the Finance Act 2020, registrations were lifetime unless revoked. Now, registrations last for a shorter period:
    • Provisional registration is given for 3 years to new entities.
    • Permanent registration is valid for 5 years for already registered entities.

When to File Form 10AB:

  • Renewal of existing registration or approval.
  • Conversion from provisional to regular registration.
  • Modification in the Memorandum of the Society or Trust Deed.
  • Activation of inoperative registration.

Important Timelines:

  • For conversion: Within 6 months of activity start or before provisional certificate expires.
  • For modification: Within 30 days of the change.
  • For activation: At least six months before the desired operational tax year.

Documents Needed for Form 10AB:

  • Self-certified copy of the Memorandum or Trust Deed.
  • Audited financial statements of the last 3 years.
  • KYC of all trustees or members.
  • Details of activities.
  • Existing registration or approval under Section 12A or 80G.
  • Documents showing modification of objectives.

Filing Process for Form 10AB:

  1. Log in to the Income Tax e-filing portal.
  2. Navigate to e-file > Income Tax Forms > File Income Tax Forms.
  3. Select Form 10AB and the relevant assessment year.
  4. Fill in the required details and attach necessary documents.
  5. Submit the form using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Conclusion: Navigating these forms is crucial for trusts, NGOs, and charities to maintain their tax-exempt status. Following the specific timelines and having the right documentation ready simplifies the compliance process. It's important to keep updated with any changes in tax regulations and consider professional advice for accurate form submission.