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). For more details on Renewal registration of trust/ institution, click here

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:

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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.

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Frequently Asked Questions

Common questions about CBDT Clarification on Form 10AC for Trust Registration.

Form 10AC is an order issued by the Principal Commissioner or Commissioner of Income Tax granting registration, approval, or renewal of registration/approval to trusts and institutions under Sections 12AB, 10(23C), and 80G of the Income Tax Act.

The CBDT has issued clarification on Form 10AC to align the conditions for granting registration/approval to trusts and institutions with the amendments introduced by the Finance Act, 2022, which allows for examination of 'specified violations' by these entities.

The CBDT has listed down revised conditions that trusts and institutions must follow while seeking re-registration under Section 12AB, re-approval under Section 10(23C), and re-approval under Section 80G of the Income Tax Act. These conditions are provided in the circular issued by the CBDT.

No, the conditions contained in Form 10AC issued between April 1, 2021, and the date of the circular (June 3, 2022) are to be read as substituted by the revised conditions provided by the CBDT, with effect from April 1, 2022.

Form 10AC is issued to grant registration, approval, or renewal of registration/approval to trusts and institutions, allowing them to claim exemptions and deductions under the relevant sections of the Income Tax Act.

Form 10AC is issued by the Principal Commissioner or Commissioner of Income Tax after examining the application (Form 10AB) filed by a trust or institution seeking registration, approval, or renewal.

The validity period of registration/approval granted through Form 10AC is not mentioned in the article. However, the Income Tax Act and related rules may have specific provisions regarding the validity period.

Yes, the CBDT clarification mentions that the Principal Commissioner or Commissioner of Income Tax can examine if there is any 'specified violation' by the trust or institution and pass an order for cancellation of registration or refusal to cancel the registration.

The 16-digit alphanumeric Unique Registration Number (URN) is issued to applicants who apply for registration, approval, or renewal through Form 10AB. This URN serves as a unique identification number for the trust or institution.