CBDT Extend Time Limit to file Form No. 10AB

CBDT Extend Time Limit to file Form 10AB

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CBDT Extends Time Limit to file Form 10AB

Central Board of Direct Taxes (CBDT) vides Circular No. 8/2022 dated 31.03.2022 has extended the time limit for filing of Form No. 10AB for seeking registration or approval under Section 10(23C), 12A or 80G of the Income-tax Act, 1961  to 30th September 2022.

Earlier, vide a press release dated 31.03.2022, the CBDT has also intimated that the last date for filing of Form No. 10AB for seeking registration or approval under Section 10(23C), 12A or 80G of the Income Tax Act has been extended to 30th September 2022.

Form 10AB – Application for Registration

Finance act 2020 has introduced a new concept of provisional registration to tackle the practical issue of difficulty in granting registration or approval before the start of actual charitable activities by a trust or an institution.

Form 10AB was notified recently by the CBDT to enable trusts/NGOs to apply for renewal or conversion of provisional registration to regular registration or approval of its registration or the approval to the new registration scheme as per section 12AB. Henceforth any application for renewal of registration or approval of a trust shall be required to be made in form 10AB.

The new Form No. 10A is used only once in the lifetime of the trustor institution for registration or approval. For subsequent renewal, Form No. 10AB is required to be used.

Purpose of Form 10AB

Existing Trust registered under Section 12AB of the Income Tax Act who wishes to claim an exemption under Section 11 and under Section 12 is mandatory required to obtain registration under the Income Tax Act by filing Form No. 10AB.

  • The trust which is registered as per new law under Section 12AB of the Income Tax Act is required to make an application for re-registration under Section 12AB in Form 10AB.
  • Form Nos. 10AB needs to be furnished electronically online through a digital signature if the return of income is required to be furnished under a digital signature or through an electronic verification code in a case of nonavailability of a Digital Signature.
  • Form Nos. 10AB must be verified by the person who is authorized to verify the return of income under section 140, as applicable to the applicant.

Applicability of Form No. 10AB

Form 10AB can be used for registration by entities that are provisionally registered under Section 12AB of the Income Tax Act

S.No. When Form No. 10AB is used Section Rule
1 For renewal of approval u/s 10(23C) of institutions (fund or trust or institution or university or other educational institution or hospital or other medical institution) which is expiring after 5 years Clause (ii) of the first proviso to section 10(23C) Rule 2C
2 For newly established institutions (fund or trust or institution or university or other educational institution or hospital or other medical institution) that are applying for regular approval after the expiry of provisional approval u/s 10(23C) Clause (iii) of the first proviso to section 10(23C) Rule 2C
3 For renewal of approval u/s 80G of fund or institution which is expiring after 5 years Clause (ii) of the first proviso to section 80G(5) Rule 11AA
4 For newly established institutions (fund or trust or institution or university or other educational institution or hospital or other medical institution) that are applying for regular approval after the expiry of provisional approval u/s 10(23C) Clause (iii) of the first proviso to section 80G(5) Rule 11AA
5 For renewal of registration u/s 12AB of trusts or institutions which is expiring after 5 years Section 12A(1)(ac)(ii) Rule 17A
6 For newly established trusts or institutions that are applying for regular registration after the expiry of provisional registration u/s 12AB Section 12A(1)(ac)(iii) Rule 17A
7 Where registration of the trust or institution has become inoperative due to the first proviso to Section 11(7) Section 12A(1)(ac)(iv) Rule 17A
8 Where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration Section 12A(1)(ac)(v) Rule 17A

Who can make an application through Form 10AB?

Form 10AB can be used for registration by entities that are provisionally registered u/s 12AB of the Income Tax Act as per the new law and the period of approval is due to

  • Fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or (v) or (vi) or (via) of section 10(23C) approved under the first proviso effective from 1st April 2021
  • Trust/Institute registered under section 12AB
  • Institution/fund approved under the proviso of clause (vi) of section 80G (5) effective from 1st April 2021.

Documents Required

Documents to be accompanied by the Application are as follows:

  • Where the applicant is created or established, under an instrument, self-certified copy of such instrument creating or establishing the applicant;
  • Where the applicant is created or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
  • Self-certified copy of the registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts
  • Self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act
  • Self-certified copy of existing order granting registration under section 12A or section 12AA or section 12AB
  • Self-certified copy of the order of rejection of application for grant of registration under section 12A or section 12AA or section 12AB,
  • where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up
  • where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
  • where the income of the applicant includes profits and gains of business as per the provisions of sub-section (4A) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
  • self-certified copy of the documents evidencing adoption or modification of the objects;
  • Note on the activities of the applicant.

The Time Limit for Filing Form 10AB

  • All the trusts or institutions that obtain the permanent enrollment or approval for the 5-year duration would be needed to make the application in Form No. 10AB after a period of 5 years.
  • The time duration limit to make the application in Form 10AB towards all the trust or institutions who held the provisional registration or approval for the duration of 3 years for the enrollment u/s 12AB would be prior to the subsequent 6 months before the expiry date or in 6 months of the start of the activities. The order for re-registration beneath section 12AB would be passed via PCIT/CIT in the duration of 3 months from the finish of the month where the application gets filled. The same registration would be valid for the 5-year duration.
  • An individual should know about the duration of the provisional enrollment which is 3 years and the same would not be extended automatically.
  • Form No.10AB is mutual for every trust and institution and despite the same is the only form that comes for the utilization to build the application for enrollment under section 80G.

Furnishing of Form 10AB

Various trusts are being enrolled with the provisional registration and want to apply for the permanent registration. Identical to that there were several trusts who were already performing charitable activities but since they have not availed the enrollment beneath the former provision for which they had applied for the provisional enrollment. Application inside Form No. 10AB would be essential for all these trusts. The Form No. 10AB reported that it has been activated on the income tax portal.

Procedure to File Form 10AB on New E-Filing Portal

The procedure to online file Form 10AB on the new e-filing income-tax portal is as follows:

  • The trust/NGO is required to access the new e-filing portal and log in to the portal by entering the user ID and password. The user can apply Form 10AB only after successful logging.
  • Click on the menu titled ‘file and then select ‘File Income Tax Forms’. Select ‘Form 10AB – Application for registration or approval.The Form 10AB  is reproduced below for reference:
CBDT Extend Time Limit to file Form No. 10AB
  • The PAN and submission mode ‘Online’ will be prefilled and cannot be edited. Provide the value in the field ‘Assessment Year’ as 2022-2023
  • Click on ‘Continue’ and then click on ‘Let’s Get Started’ to proceed further. The application form 10AB will be displayed. Provide the following mandatory details:
  • At last, the form is required to be verified by DSC or EVC as per Rule 17A(3)/(4). The name, father’s name, nature of the constitution, as well as capacity, will be prefilled. After providing the details, click on attach the button to upload all documents.
  • Once the information/data are filled in, click on the ‘Save’ button. After all the sections are filled in, each of them will be green-ticked and the status will be shown as ‘completed
  • Submit the form through the digital signatures or EVC as needed during furnishing the return. Form 10AB is filed in an online mode
  • Form 10AB shall be verified by the person who is authorized to verify the return of income under section 140, as applicable to the applicant.

Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.