The Central Board of Direct Taxes (CBDT) has issued a notification dated 26th March 2021 pertaining to the procedure for registration including reapproval/revalidation of existing 12A / 12AA / 80G registrations. The new Rules and Forms will be applicable from 1st April 2021 and all charitable trusts and institutions already registered u/s 12A or 12AA or having 80G certificate must apply for reapproval/revalidation of their registration before 30th June 2021. Aera has prepared a note for understanding and process for reapproval/revalidation/approval as per the released Notification. Please let us know if you need any more details.

1. Note : New compliance on Charitable Trusts and Institutions
Budget 2020 : “Registration under Section 12(AB) of the Income tax Act 1961”
Mar 2021

2. Finance Act, 2020 has put new compliance on Charitable Trusts and Institutions. As per new
provisions of the Finance Act, 2020, Charitable Trusts and institutions will have to reapply for
Income Tax registration.
Background:
The Central Board of Direct Tax has issued a circular (Notification No. 212(E)
dated 26th March 2021) with a view to have new compliance on Charitable all
the existing charitable and institutions already registered under Section 12A,
Section 12AA, Section 10(23C) and Section 80G will be required to re-apply to
the income tax authorities to re-validate their existing registrations. All Charita-
ble trusts and institutions which are already registered under Section 80G, 12A
or Section 12AA of Income Tax Act, 1961 will now be required to obtain a Fresh
Registration by June 30, 2021. The process will be online .
Newly established trusts and institutions applying to income tax registration for
the very first time will be given provisional registration for three years.
In Detail
The registration of the charitable trust, institutions etc. has presently given u/s.
12AA of the Income Tax Act (“Act”). Now, w.e.f. 01st April 2021 it is proposed to
make this section ineffective and to give registration under new section 12AB.
Presently, the registration U/s. 12AA and approval U/s. 10(23C), 80G are given
without any expiry period. Now, under new provisions these are proposed to be
given only for the limited period of 5 years On the expiry of the aforesaid period
the registration/approval may be re-obtained.
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Note on
Registration under Section
12(AB) of the Income tax Act
1961
Please note: This note is prepared
based on the notification released
by the Central Board of Direct Tax.
It may undergo minor or major
changes based on any further
circular/notification/ clarification
provided by the Government or
CBDT.
Related
To all Charitable Trusts and
Institutions covered under 10(23c)
registered under Section 12(A) or
12(AA) or/and 80G.
In brief
In Budget 2020 presented on 1st February
2020, FM Nirmala Sitharaman proposed
some changes in the existing norms for
exemptions under Section 80G and Sec-
tion 12A/12AA. It was decided that all
these amendments would be made effec-
tive w.e.f. 1st April, 2021.

3. 2
Particular Details
Registration start date This registration shall start from 1st April 2021.
Application To reapply online for registration and approval. Offline application is not allowed.
Registration validity
Re-approval and new registration will be valid for 5 years. All charitable trust and
Institutions has to re-apply before the expiry
Applicability
Pertaining to procedure for registration including re-approval of existing 12A /
12AA / 80G registrations as well as new registration under Section 12AB
Applicable Charitable
Trust and Institutions
Scheme applicable to all charitable trusts & Institutions including :
Section 12A
It is a registration done by to get an organization income exempted from Tax. All
income shall not be taxable after Section 12A (earlier)/ 12AA (current)
Registration Such charitable trust and Institutions are covered as per section
10(23c) of the Income tax Act
Section 80G
80G Registration of Income Tax Act provides benefits to the donor of the
charitable trusts and Institution. The donor gets financial benefits in his taxable
amount of their income.
Filing Fees There is no filing/regulatory fees would be levied by the Govt for this filing
Timeline and Approval
for Institution registered
under Section 12A or
12AA or 80G
1) Application shall be made within 30th June 2021 (within 3 months from start
date )
2) Approval should come within 3 months from the end of the month in which the
application was received
3) Form A to be used for registration application
Timeline and Approval
for Institution
registered under
Section new 12AB or
Provisional approved
1) Application shall be made at-least 6 months before expiry of the period of
approval
2) Approval should come within 6 months from the end of the month in which the
application was received
3) Form AB to be used for registration application

4. The interpretation of the Notification is as follows:
Documents required with Registration form ( 10A /10AB)
1. Note on the activities of the applicant.
2. For Charitable Trusts & Institutions, created or established under an Act of the Central or State Government,
self-certified copy of such instrument/trust deed creating or establishing the Charitable Trusts & Institutions.
3. For Charitable Trusts & Institutions, created or established otherwise than under any other instruments,
self-certified copy of such of the document evidencing creation or establishment of the Charitable Trusts &
Institutions.
4. Self-certified copy of registration with Registrar of Charity Commissioner, companies or Registrar of Firms and
Societies or Registrar of Public Trusts, as the case may be.
5. Self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (42 of 2010), if the applicant
is registered under such Act
6. Self-certified copy of existing order granting approval u/s 10(23C).
7. Self-certified copy of order of rejection of application for grant of approval u/s 10(23C), if any;
8. For existing charitable trusts and institutions, self-certified copies of the annual accounts of the last years
immediately preceding the year in which the said application is made. If the trust is in operation for less than 3
years, then it is required for a period of operation only.
9. Where the Charitable Trusts & Institutions are covered by the provisions of section 11(4) or where income of
the Charitable Trusts & Institutions includes profits and gains of business as per the provisions of section 11(4A)
then the self-certified copies of the annual accounts and report of audit as per the provisions of section 44AB for
the last three years immediately preceding the year in which the said application is made is also required.
Signature on the Application
1. The Form shall be furnished electronically through digital signature, if the return of income is required to be
furnished under digital signature.
2. If digital signature is not there, it can be verified through electronic verification code.
3. The Form shall be verified by the person who is authorized to verify the return of income under section 140 of
the Income-tax Act, 1961.
Our opinion (The Bottomline)
1. All the Charitable Trust and Institution has to re-registrar under Section 12AB. Existing registration under
Section 12A/12AA/ 80G would be irrelevant.
2. New registration/approval is for a limited period of 5 years only. Presently, the registration U/s. 12AA and
approval U/s. 10(23C), 80G are given without any expiry period. Now, under the new provisions, these are
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5. proposed to be given only for a limited period of 5 years. On the expiry of the aforesaid period, the
registration / approval may be re-apply.
3. Application for renewal after 5 years must be made at least six months prior to the expiry of the five year
validity period.
4. Every charitable trust or institution registered u/s 80G shall be required to submit a statement of
donations received in such form & manner as may be prescribed & the benefit of 80G shall be available to
donors on the basis of information relating to donation furnished by the corresponding charitable trust or
institution.
5. The consequence of not re-apply under form 10A/10AB would be :
5.1. The benefit to the charitable Trusts or Institution of income exempted from Income tax would not be
available
5.2. The benefit to Donor as covered under 80(G) would lapse.
The charitable trust or Institutions should take their decision quickly and be a part of the complaint side of the
Law.
At Aera, we can assist with the implementation of the compliance program & happy to be a part of your
progress forever.
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