{"id":9103,"date":"2020-05-21T18:16:09","date_gmt":"2020-05-21T12:46:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=9103"},"modified":"2020-07-15T12:31:09","modified_gmt":"2020-07-15T07:01:09","slug":"new-trust-registration-procedure-2020","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/","title":{"rendered":"New Registration Procedure under 12A (1) a\/aa\/ab: Trust 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Section 12A (1) a\/aa\/ab\nprovides new registration of trust where a trust or an institution has granted\nregistration. However, afterward, it has adopted or undertaken alterations of\nthe objects which do not conform to the state of affairs of registration.<\/p>\n\n\n\n<p>As we all know, the existing Form No. 10A has exchanged by the Central Board of Direct Taxes-&nbsp;<strong>Notification No.10\/2018, dated 19\/02\/2018<\/strong>. It has also changed rule 17A that has been replaced by the Income-tax (known to be First Amendment) Rules, 2018, <strong>w.e.f. 19-2-2018<\/strong>. This article will enclose all the details regarding Form 10A and a new registration procedure under 12A (1) a\/aa\/ab grant for trust.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_do_you_mean_by_application_in_Form_No_10A_for_registration_of_charitable_or_religious_trusts\" >What do you mean by application in Form No. 10A for registration\nof charitable or religious trusts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_is_the_Procedure_for_Registration_under_section_12A\" >What is the Procedure for Registration under section 12A?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_do_Supreme_Court_CBDT_says_on_Cancellation_of_Registration_granted_us_12A\" >What do Supreme Court &amp; CBDT says on Cancellation of Registration granted u\/s 12A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_are_the_New_replaced_sections_for_Charitable_Institutions_as_per_Budget_2020_Latest_Rules\" >What are the New replaced sections&nbsp;for Charitable Institutions as per Budget 2020?&nbsp;: Latest Rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_are_the_amended_provisions_of_the_Time_limit_to_make_an_application_for_re-registration_and_to_file_a_Tax_Audit_Report\" >What are the amended provisions of the Time limit to make an application for re-registration and to file a Tax Audit Report?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_are_the_Fresh_Registration_Procedural_aspects_as_per_the_amended_provisions_of_section_12AB_getting_exemption_us_11_and_us_12\" >What are the Fresh Registration Procedural aspects as per\nthe amended provisions of section 12AB, getting exemption u\/s 11 and u\/s 12?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_is_the_time_limit_to_get_the_New_Registration_Granted_us_12AB_as_specified_in_section_12A_1_i_to_vi\" >What is the time limit to get the New Registration Granted\nu\/s 12AB as specified in section 12A (1) (i) to (vi)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#What_does_CBDT_say_on_the_compliance_date_for_the_process_of_the_New_Section_in_the_middle_of_COVID-19\" >What does CBDT say on the compliance date for the process\nof the New Section in the middle of COVID-19?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/new-trust-registration-procedure-2020\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_application_in_Form_No_10A_for_registration_of_charitable_or_religious_trusts\"><\/span>What do you mean by application in Form No. 10A for registration\nof charitable or religious trusts?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The application for registration of a charitable trust will be made in Form No. 10A under the clause (aa) or clause (ab) of sub-section (1) of&nbsp;<strong>section 12A.<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"299\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-94.png\" alt=\" application for registration of a charitable trust\" class=\"wp-image-9105\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-94.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-94-300x156.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">List of Documents to be\nsubmitted with Form 10A<\/h3>\n\n\n\n<p>The following stated documents shall supplement the application in Form 10A:<\/p>\n\n\n\n<ul><li>Proof of <strong>instrument creating the trust<\/strong> or\nestablishing the institution- Self Certified Copies<\/li><li>Proof of creation\nof the trust, or <strong>establishment of the\ninstitution<\/strong> otherwise than under an instrument- Self-certified copy<\/li><li>Proof of\nevidencing adoption or <strong>modification of\nthe objects<\/strong>, if any- Self-certified copy<\/li><li>Copies of <strong>annual reports<\/strong> of the trust\/institution\nfor three immediately preceding financial years- All certified Documents.<\/li><li><strong>Note<\/strong> on the\naccomplishments of the trust or institution.<\/li><li>Copies of <strong>existing order granting registration<\/strong>\nunder section 12A or section 12AA, if any \u2013 Self Certified<\/li><li>Copies of the order of <strong>rejection of an application<\/strong>, if any- Self Certified <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">E-Filing &amp; Verification\nof the Form No. 10A:<\/h3>\n\n\n\n<ul><li>As applicable to\nthe assesse, Form No. 10A shall be verified by the individual who is <strong>authorized <\/strong>and has the power to verify\nthe return of income under <strong>section\n140<\/strong>.<\/li><li>Form No. 10A\nshall be furnished&nbsp;<strong>electronically.&nbsp;<\/strong>The\nfollowing may do it by: &#8211; a) digital signature and b) electronic verification\ncode.<\/li><\/ul>\n\n\n\n<ol><li>In furtherance with&nbsp;<strong>a\ndigital signature<\/strong>, the return of income is compulsory to get\nfurnished under digital signature.<\/li><li>The electronic&nbsp;<strong>verification\ncode<\/strong>&nbsp;has to get done in a case not covered in the above\nclause.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Procedure_for_Registration_under_section_12A\"><\/span>What is the Procedure for Registration under section 12A?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We all are aware that Section 12AA of the Income Tax Act 1961 suggests the <strong>approved procedure for<\/strong> <a href=\"https:\/\/corpbiz.io\/trust-registration\"><strong>Trust Registration<\/strong><\/a> or institutions. The brief of the process is as follows:-<\/p>\n\n\n\n<p><strong>Step one: &#8211;<\/strong>&nbsp;Based on the application for registration of a trust or institution, the Principal Commissioner or Commissioner shall:-<\/p>\n\n\n\n<ul><li>Call for such\napproved documents or statistics from the trust or institution. It must be done\nas the Principal Commissioner, or Commissioner thinks essential to satisfy\nhimself about:-<\/li><\/ul>\n\n\n\n<ol><li>The <strong>genuineness of\nactivities<\/strong> of the trust or institution; and<\/li><li>The <strong>compliance<\/strong> of\nsuch necessities which are material to attain its objects<\/li><\/ol>\n\n\n\n<p><strong>Step two: &#8211;<\/strong>&nbsp;After sustaining himself about the \u2018<strong>objects<\/strong>\u2019 of the trust, the <strong>\u2018genuineness<\/strong>\u2019 of its accomplishments and compliance of the requests, he shall<\/p>\n\n\n\n<ol><li>Authorize and <strong>pass an\norder<\/strong> in writing concerning the registration of the trust or institution <\/li><li>If not so fulfilled, pass an order in <strong>writing rejecting<\/strong> to register the trust or institution- stating\nreason.<\/li><li>At last, a copy of such order shall be directed to the applicant\nTrust.<\/li><li>It should get noted that no order shall be approved unless the\napplicant has specified with a \u2018<strong>reasonable\nopportunity\u2019<\/strong> of being heard.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_Supreme_Court_CBDT_says_on_Cancellation_of_Registration_granted_us_12A\"><\/span>What do Supreme Court &amp; CBDT says on Cancellation of Registration granted u\/s 12A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Supreme Court\nCase: &#8211;<\/strong>&nbsp;<em>CIT vs. Society for the Promotion of Education, Adventure Sport &amp;\nConservation of Environment- 2016<\/em><\/li><li><strong>Following<\/strong><strong>&nbsp;<\/strong>the case, the Supreme court held that every single order\ngranting or refusing registration should be accepted <strong>before the termination of <\/strong>\u2018<strong>six\nmonths\u2019<\/strong>&nbsp;from the end of the month in which the application\nwas acknowledged.<\/li><\/ul>\n\n\n\n<div class=\"shadow1\">Section 12AA: Non-disposal of an application for registration before the expiry of &#8216;six months&#8217; as provided under section 12AA (2) &#8211; results in deemed grant of registration<\/div>\n\n\n\n<ul><li><strong>Central Board of Direct Taxes Instruction:-&nbsp;&nbsp;<\/strong>The&nbsp;<strong>Central Board of Direct Taxes<\/strong>&nbsp;has delivered Instruction No. 16 dated 06.11.2015, in which the time limit of <strong>six months<\/strong> specified <strong>in s. 12AA (2)<\/strong> of the Income-tax Act 1961- for approving an order granting or refusing registration. <\/li><li><strong>Exemptions<\/strong>: The Registration under s. 12AA (2) of the Income-tax Act 1961 is not to be followed by the Commissioners of Income Tax.&nbsp; <\/li><li>Therefore, The CBDT has directed guidelines to the Chief Commissioners of Income-tax to <strong>monitor<\/strong> if Commissioners are sticking to the time limit. If case of any violation of the given instructions, the Chief Commissioners can take suitable <strong>administrative action<\/strong> in the case of laxity.<\/li><\/ul>\n\n\n\n<ul><li>Avenues on which registration <strong>can get canceled<\/strong>:-<\/li><\/ul>\n\n\n\n<ol><li>Activities &amp;\nevents are not genuine of such trust or institution.<\/li><li>Activities are\nnot consonance with the objects of the trust or institution being carried out.<\/li><li>Income of the\nTrust does not sustain for the advantage of the general public.<\/li><li>In cases where\nthe income is for the benefit of any specific religious community or caste.<\/li><li>If the income or\nproperty of the trust applied for the profit orientations to specified persons\nlike the author of trust, trustees, etc.<\/li><li>If the income or\nwealth of the trust was used, its funds and invested in prohibited modes of\narena.<\/li><\/ol>\n\n\n\n<div class=\"shadow1\">\u201cRegistration will not be annulled if the trust institution evidences that there was \u2018reasonable cause\u2019 for carrying out such accomplishments\/activities in the said manner.\u201d<\/div>\n\n\n\n<ul><li><strong>Amendment by\nFinance Act\u2019 2017:-&nbsp;<\/strong>The said\nAmendment speaks about the trust or an institution that has established\nregistration-grant. Subsequently, it has implemented or adopted modifications\nof the objects which do not fit into the objectives of registration.<\/li><li>In such cases, it\nshall be required to obtain \u2018<strong>fresh\nregistration\u2019<\/strong> by making an application within <strong>thirty days<\/strong> from the date of such implementations of the objects in\nthe suggested form and prescribed manner.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_New_replaced_sections_for_Charitable_Institutions_as_per_Budget_2020_Latest_Rules\"><\/span>What are the New replaced sections&nbsp;for Charitable Institutions as per Budget 2020?&nbsp;: Latest Rules<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Section 12AB to replace Section 12AA and Section 12A&nbsp;<\/h3>\n\n\n\n<ul><li><strong>The Finance Act of 2020<\/strong>&nbsp;has released specific <strong>new\ncompliance<\/strong> responsibilities on Charitable Trusts and all Exempted\nInstitutions. In this context, the new provisions of the Finance Act, 2020 for\nCharitable Trusts and exempt institutions,&nbsp;<strong>need to re-apply<\/strong>&nbsp;for Income Tax registration\nas per the Act.<\/li><li>Moreover,&nbsp;<strong>Section 12AA,&nbsp;<\/strong>dealing with\nregistration for a charitable institution, will<strong>&nbsp;come to an end to applicability&nbsp;<\/strong>from\n01.06.2020. In place of this, a new section<strong>&nbsp;12AB has been introduced,&nbsp;<\/strong>suggesting the\nprocedure for&nbsp;<strong>new\nregistration<\/strong>.&nbsp;<\/li><li>Requirements of\nregistration under section 12AA or section 12A will&nbsp;<strong>become redundant<\/strong>, and new\nsection 12AB will come into force. All the prevailing registered trusts under\nthe preceding section 12A or section 12AA would transfer to the new provision\nunder section 12AB.<\/li><li>Besides, instead\nof CIT (Exemption) examination, an application is a prerequisite to be made\nneed-fully to the Commissioner or Principal Commissioner of Income-tax.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">National Register for Charitable Institutions<\/h3>\n\n\n\n<ul><li>The Government\nproposes to create a<strong>&nbsp;\u2018National\nRegister\u2019&nbsp;<\/strong>of charitable and religious institutions.\nMoreover, the Income Tax Department will produce an electronically generated \u2018<strong>Unique Registration Number\u2019 (URN)&nbsp;<\/strong>to\nall charitable trust and religious institutions.<\/li><li>The procedure of <strong>re-validation<\/strong> of all the charitable\ntrust and religious institutions will qualify\/enable the Government to pull out\nall the <strong>dis-functional and out-dated<\/strong>\ncharitable institutions.<\/li><li>Even following the\npast, many registered trusts are found involved in malpractices for private\nexploiting and taking out profits rather than doing any unpretentious social\nwork.&nbsp;<\/li><li>The\nrevitalization of registration after every <strong>five\nyears<\/strong> will make an opportunity to withdraw the exemptions without going\nthrough the complex cancellation provisions. In the year of 2019, the rules\ninterrelated to charitable trusts\/NGOs got tightened up to remove the\nregistration even for <strong>social abuses<\/strong>\nunder other laws for attaining its objectives.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Section 80G Certification and\nTDS Provisions<\/h3>\n\n\n\n<ul><li>All the exempted charitable trusts and institutions will now be required to&nbsp;<strong>re-apply<\/strong>&nbsp;online for registration or approval, which&nbsp;<strong>already<\/strong>&nbsp;has Section 80G certificates, which will be the latest by&nbsp;<strong>August 31, 2020<\/strong>. The re-applied registration certificate shall persist and remain valid for the next five years.&nbsp;<\/li><li>The compliance and submission burden on Charitable Trusts and Exempt Institutions goes with few additional parameters to file statements of donation received and matters of donation certificates to donors in line by <strong>TDS provisions<\/strong><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/Pages\/Deposit_TDS_TCS.aspx\"><strong>[1]<\/strong><\/a><\/sup>. In case of failure, heavy fines and penalties are imposed on file such statements.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_amended_provisions_of_the_Time_limit_to_make_an_application_for_re-registration_and_to_file_a_Tax_Audit_Report\"><\/span>What are the amended provisions of the Time limit to make an application for re-registration and to file a Tax Audit Report?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Kindly get the\ndetailed time limit prescribed by the Amendment:-<\/li><\/ul>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td width=\"262\">\n<p style=\"text-align: center;\"><strong>Incidents&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/p>\n<\/td>\n<td width=\"387\">\n<p style=\"text-align: center;\"><strong>Time Limit<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"262\">\n<p>Institution registered&nbsp; &nbsp;under section 12A or 12AA<\/p>\n<\/td>\n<td width=\"387\">\n<p>Within 31<sup>st<\/sup>&nbsp;August, 2020<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"262\">\n<p>Institution registered under section 12AB<\/p>\n<\/td>\n<td width=\"387\">\n<p>6 months prior to the expiry date of 5 years<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"262\">\n<p>Institution provisionally&nbsp;registered&nbsp;under section 12AB<\/p>\n<\/td>\n<td width=\"387\">\n<ul>\n<li>6 months prior&nbsp;to the expiry date<\/li>\n<li>within&nbsp;6 months of commencement of its activities (Whatever early)<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"262\">\n<p>Institution becomes&nbsp;inoperative<\/p>\n<\/td>\n<td width=\"387\">\n<p>6 months prior to the commencement<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"262\">\n<p>Institution has modified the objectives<\/p>\n<\/td>\n<td width=\"387\">\n<p>within a&nbsp;period of 30 days of such modification<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"262\">\n<p>Other Events<\/p>\n<\/td>\n<td width=\"387\">\n<p>at least 1 month prior&nbsp;to the commencement of the previous year<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<ul><li><strong>Tax Audit\nReport:&nbsp;<\/strong>The Audit Tax\nReport required filing Tax Audit under section 12A of a trust or institution.<\/li><\/ul>\n\n\n\n<ul><li><strong>Time Limit:&nbsp;<\/strong>The Tax Audit Report shall be filed in <strong>one month<\/strong> preceding the due date of filing of return under section 139(4A); read with section 139(1).<\/li><\/ul>\n\n\n\n<ul><li>Due to this <strong>Corona outbreak<\/strong>, the due date for filing of return of income in Tax Audit cases is post-pond to 31st October. Henceforth, Tax Audit Report shall be provided by 30th September positively.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/investment-by-trust-compliance\/\">Investment by Trust &amp; Compliance U\/s 11(5)\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Fresh_Registration_Procedural_aspects_as_per_the_amended_provisions_of_section_12AB_getting_exemption_us_11_and_us_12\"><\/span>What are the Fresh Registration Procedural aspects as per\nthe amended provisions of section 12AB, getting exemption u\/s 11 and u\/s 12?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Applicability of exemption<\/h3>\n\n\n\n<ul><li><strong>Situation 1<\/strong>:- Where a trust or institution is&nbsp;<strong>registered<\/strong>&nbsp;&nbsp;under\nsection 12A or 12AA<\/li><\/ul>\n\n\n\n<p><strong>Applicability:&nbsp;<\/strong>It starts from the assessment year from which registration was granted before to the charitable trust or institution<\/p>\n\n\n\n<ul><li><strong>Situation 2:-&nbsp;<\/strong>Where a <a href=\"https:\/\/corpbiz.io\/learning\/restrictions-on-the-charitable-trust\/\"><strong>Charitable trust<\/strong><\/a> or institution is&nbsp;<strong>provisionally<\/strong>&nbsp;<strong>registered<\/strong>&nbsp;under section 12AB<\/li><\/ul>\n\n\n\n<p><strong>Applicability<\/strong>: It starts from the first assessment year in which provisional registration was granted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Procedure for fresh registration\n&amp; Granting Under section 12AB&nbsp;<\/h3>\n\n\n\n<p>It gets done by the Principal Commissioner or the Commissioner after receipt of an application under the conditions stated in section 12A (1)(i) to (vi).<\/p>\n\n\n\n<ul><li><strong>Condition 1<\/strong>: Registration will be granted for 5 years [Section 12AB(1)(a)]<\/li><\/ul>\n\n\n\n<p><strong>Illustration:<\/strong>&nbsp;&#8211; In this case, no documents will be called, or inquiry will be made for granting the registration.<\/p>\n\n\n\n<ul><li><strong>Condition 2:&nbsp;<\/strong>Registration may be granted for five years if PCIT or CIT is\nsatisfied about the genuineness of activities and compliances under any other\nlaws of the trust or institutions. [Section 12AB(1)(b)(ii)]<\/li><\/ul>\n\n\n\n<p><strong>Illustration:<\/strong>&nbsp;In this case,&nbsp;<strong>PCIT or CIT shall have the powers to call for documents or information&nbsp;<\/strong>from the trust or institution or to make inquiries <strong>before the renewal<\/strong> of the registration after five years.<\/p>\n\n\n\n<ul><li><strong>Condition 3: Registration may be\ncanceled<\/strong>&nbsp;after providing a reasonable\nopportunity of being heard to the trust or institution.<\/li><\/ul>\n\n\n\n<p><strong>Illustration:<\/strong>&nbsp;Further, before canceling the registration, the trust or institution shall be allowed to present its case<\/p>\n\n\n\n<ul><li><strong>Condition 4: Provisional\nRegistration shall be granted&nbsp;<\/strong>for three years from the assessment year from which the\nregistration is sought. [Section 12AB(1)(c)]<\/li><\/ul>\n\n\n\n<p><strong>Illustration:&nbsp;<\/strong>It appears that in this case,&nbsp;<strong>no documents will be called, or inquiry will be made<\/strong>&nbsp;for granting the provisional registration.<\/p>\n\n\n\n<ul><li><strong>Condition 5:<\/strong>&nbsp;Any&nbsp;<strong>pending\napplication<\/strong>&nbsp;filed under section 12AA<\/li><\/ul>\n\n\n\n<p><strong>Illustration:<\/strong>&nbsp;All the&nbsp;<strong>pending application<\/strong> filed under section 12AA as on 01.06.2020 will be considered to be an application made under section 12A(1)(ac)(vi)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_time_limit_to_get_the_New_Registration_Granted_us_12AB_as_specified_in_section_12A_1_i_to_vi\"><\/span>What is the time limit to get the New Registration Granted\nu\/s 12AB as specified in section 12A (1) (i) to (vi)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It will be granted by the Principal Commissioner or the Commissioner after the receiving of an application under the conditions specified in section 12A (1) (i) to (vi).<\/p>\n\n\n\n<ul><li><strong>12A (1)(ac) (i):-<\/strong>&nbsp;Registration will be granted for a period of 5 years.\n[Section 12AB (1)(a)]<\/li><\/ul>\n\n\n\n<p><strong>Time Limit: &#8211; Within three months&nbsp;<\/strong>from the end of the month, in which application is made.<\/p>\n\n\n\n<ul><li><strong>12A(1)(ac)<\/strong>&nbsp;<strong>(ii)\/(iii)\/(iv)\/(v):-<\/strong>&nbsp;Registration\nmay be granted for five years if PCIT or CIT is satisfied about the genuineness\nof activities and compliances under any other laws of the trust or\ninstitutions. [Section 12AB (1)(b)(ii)]<\/li><\/ul>\n\n\n\n<p><strong>Time Limit: &#8211; Within six months<\/strong>&nbsp;from the end of the month, in which application is made.<\/p>\n\n\n\n<ul><li><strong>12A (1)(ac) (vi):<\/strong>&nbsp;Provisional Registration shall be granted for three years\nfrom the assessment year from which the registration is sought.<\/li><\/ul>\n\n\n\n<p><strong>Time Limit: &#8211; Within one month<\/strong>&nbsp;from the end of the month, in which application is made.<\/p>\n\n\n\n<ul><li><strong>Cancelation u\/s 12AB (1)(a) or u\/s 12AB(1)(b):-&nbsp;<\/strong>Any registration granted u\/s 12AB (1) (a) or u\/s 12AB (1)(b) can be cancelled      subsequently if the Principal Commissioner or the Commissioner are      satisfied with few conditions. Those are:-&nbsp;<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"656\" height=\"461\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-95.png\" alt=\"time limit to get the New Trust Registration\" class=\"wp-image-9106\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-95.png 656w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-95-300x211.png 300w\" sizes=\"(max-width: 656px) 100vw, 656px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_does_CBDT_say_on_the_compliance_date_for_the_process_of_the_New_Section_in_the_middle_of_COVID-19\"><\/span>What does CBDT say on the compliance date for the process\nof the New Section in the middle of COVID-19?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\nCentral Board of Direct Taxes has extended the compliance date for new section\n12AB for Charitable Trusts procedures in the middle of this dreadful disease\nCOVID-19.<\/li><li>Central\nBoard of Direct Taxes has extended or postponed the operation of the new\nprocedure for&nbsp;<strong>\u2018approval\/ registration\/ notification\u2019<\/strong>&nbsp;of\nindividual entities \u2018<strong>u\/s 10(23C), 12AA, 35 &amp; 80G\u2019<\/strong>&nbsp;of the Income\nTax Act, 1961 to \u2018<strong>October 1, 2020\u2019<\/strong>.<\/li><li>All\nthe schools and colleges are registered simultaneously under section 10(23C)\nand 12AA. All institutions registered under both section 10(23C) and section\n12AA will now are compulsorily required to apply for re-validation under\nsection 10(23C) \u2018<strong>or<\/strong>\u2019 registration under section 12AA.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"530\" height=\"208\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-96.png\" alt=\"Trust registered under both section 10(23C) and section 12AA\" class=\"wp-image-9107\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-96.png 530w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-96-300x118.png 300w\" sizes=\"(max-width: 530px) 100vw, 530px\" \/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"538\" height=\"209\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-97.png\" alt=\"Trust registered under either section 10(23C)\/section 12AA\" class=\"wp-image-9108\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-97.png 538w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-97-300x117.png 300w\" sizes=\"(max-width: 538px) 100vw, 538px\" \/><\/figure><\/div>\n\n\n\n<ul><li>The\nnew compliances under the mentioned section were made applicable from <strong>June 1, 2020<\/strong>, and should have been\nfinished by <strong>August 31, 2020<\/strong>. Relying\non the Tweet released by Income Tax Department (<strong>such info is not law<\/strong>), the new date of compliances will begin on <strong>October 1, 2020<\/strong>, and shall remain till <strong>December 31, 2020.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Ministry of Finance has released a press note\non <strong>May 9, 2020<\/strong>, in this respect of\nthe necessary legislative amendments in this regard shall be planned in due\ncourse. In this epidemic situation, the NGOs and other charitable institutions\nare the ones who are playing a dynamic role in the social order, and their\nassistance cannot be disregarded at this moment. <\/p>\n\n\n\n<p>Therefore, it is essential to allow them to remain engaged in social actions rather than formalities. Please check in to our <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> team if you need expert advice on the new procedures of Trust Registrations. We will help you to ensure complete New Trust Registration Compliances as per your desired activities, ensuring the successful and well-timed completion of your work.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/\">Paid Donations: Guide on Tax Treatment for Charitable Purpose\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 12A (1) a\/aa\/ab provides new registration of trust where a trust or an institution has granted registration. However, afterward, it has adopted or undertaken alterations of the objects which do not conform to the state of affairs of registration. As we all know, the existing Form No. 10A has exchanged by the Central Board [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":9110,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[324],"tags":[587],"acf":{"service_id":"10"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":23815,"readingTime":9,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9103"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=9103"}],"version-history":[{"count":18,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9103\/revisions"}],"predecessor-version":[{"id":12887,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9103\/revisions\/12887"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/9110"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=9103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=9103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=9103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}