Clarification regarding Form No 10AC
CBDT Clarification on Form 10AC (Registration of Trusts & Institutions)
The Central Board of Direct Taxes (CBDT) vide Circular No. 11 of 2022 dated June 03, 2022, has issued clarification regarding Form No 10AC for conditions of cancellation of registration/approval of Trusts & Institutions. The present article briefs the CBDT Clarification on Form 10AC (Registration of Trusts & Institutions).
Form 10AC – Registration of Trusts & Institutions
A trust or institution is required to make an application for re-registration or re-approval under section 10(23C), section 12AB, or section 80G in Forms 10AB to the Principal Commissioner of Income Tax or Commissioner of Income Tax.
The Principal Commissioner of Income Tax or Commissioner of Income Tax will pass the order of granting the registration or approval in Form No. 10AC where an applicant applies to Form 10A.
As per Rule 2C, Rule 11AA, and Rule 17A, on receipt of an application in Form No. 10AB, the Principal Commissioner or Commissioner, authorized by the CBDT shall pass an order in writing granting approval or registration under Section 10(23C), under Section 80G, and under Section 12A or rejection or cancellation respectively in Form No. 10AD and issue a 16-digit alphanumeric Unique Registration Number (URN) to the applicants making an application in Form 10AB.
Amended provisions of Form 10AC vide Finance Act 2022
The Finance Act, 2022 has inserted amended provisions of the Income-tax Act allowing the Principal Commissioner or Commissioner of Income-tax to examine if there is any ‘specified violation’ by the trust or institution registered or provisionally registered. After examination, an order is required to be passed for either cancellation of the registration or refusal to cancel the registration.
Given the amendments made vide Finance Act, 2022, the conditions subject to which the registration/approval or provisional registration/ provisional approval was granted to trusts and institutions need to be revised to align the same with the amendments made by Finance Act, 2022.
Hence the CBDT has now announced the following Clarification on Form 10AC (Registration of Trusts & Institutions).
CBDT Clarification on Form 10AC
The Central Board of Direct Taxes (CBDT) has issued the following conditions:
Conditions for grant of registration under section 12AB, 10(23C), and 80G
The CBDT has listed down the revised conditions that should be followed by the trust or institution seeking:
- Re-registration and provisional registration under section 12AB,
- Re-approval and provisional approval under section 10(23C), and
- Re-approval and provisional approval under section 80G
The conditions contained in Form 10AC issued between 01.04.2021 and till the date issuance of Circular dated 03.06.2022 shall be read as if the said conditions have been substituted with the conditions as provided by the board with effect from 1st April 2022.
Refer to the following document to know more about the conditions:CBDT Clarification on Form 10AC (Registration of Trusts & Institutions)
Provisional registration/approval to be deemed as registration/approval
CBDT has clarified that if due to technical glitches, Form No. 10AC has been issued during FY 2021-2022 with the heading “Order for provisional registration” or “Order for provisional approval” instead of “Order for registration” or “Order for approval”, then all such Form No. 10AC shall be considered as an “Order for registration or approval.