Responding to representations received, CBDT has further extended the deadline for filing Form 10A (Provisional registration) and Form 10AB (Permanent Registration) to 30th June, 2024.
The Central Board of Direct Taxes (CBDT) has issued Circular No. 07/2024 dated 25.04.2024, extending the deadline for filing Form 10A/Form 10AB under the Income-tax Act, 1961 until 30th June, 2024.
CBDT has taken this step to alleviate the genuine hardships faced by taxpayers, having previously extended the deadline multiple times. The last extension was made through Circular No. 06/2023, stretching the date to 30.09.2023.
Responding to representations received, CBDT has further prolonged the deadline for filing Form 10A/Form 10AB to 30th June, 2024. This extension applies to certain provisions of section 10(23C), section 12A, section 80G, and section 35 of the Act.
In addition, CBDT has clarified that existing trusts, institutions, or funds failing to file Form 10A for AY 2022-23 within the extended deadline, and subsequently applying for provisional registration as a new entity and receiving Form 10AC, can now surrender Form 10AC and apply for registration for AY 2022-23 as an existing entity, using Form 10A until 30th June 2024.
Furthermore, trusts, institutions, or funds whose applications for re-registration were rejected solely due to late filing or filing under the wrong section code, may also submit fresh applications using Form 10AB within the extended deadline of 30th June, 2024.
All applications using Form 10A/Form 10AB must be filed electronically through the e-filing portal of the Income Tax Department.
For more details, refer to Circular No. 07/2024 available Here
Explanatory Note:
Before the Finance Act, 2020 came into effect, trusts, institutions, or NPOs/NGOs had lifetime validity once registered, unless canceled by the Income Tax Department. However, with the introduction of this act, the registration system underwent significant changes. It became entirely electronic, and each applicant now receives a unique registration number (URN). New application formats and rules were enforced for these entities from April 1, 2021.
Trusts, institutions, and NPOs/NGOs previously enjoying tax exemption under Sections 10 (23C), 12A, 12AA, 35, or 80G must reapply and obtain new registration under Section 12AB. Additionally, Section 12AB provides for tax exemption, grants from government or foreign agencies, and Foreign Contribution (Regulation) Act (FCRA) applications for international funding. The concepts of provisional and permanent registrations also apply.
Existing trusts or institutions seeking registration under Section 12AB receive provisional registration. For this process, Form 10A must be duly filed for a first-time application. Provisional registration is granted for a period of three years.
After obtaining provisional registration, trusts or institutions should apply for permanent registration by submitting Form 10AB. This should be done at least six months before the expiry of provisional registration or six months after the commencement of the trust’s charitable activities (whichever is earlier). In this case, registration is granted for a period of five years. Re-registration is required at least six months before the end of this five-year period.
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