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Income-Tax (Fourteenth Amendment) Rules, 2022

Central Board of Direct Taxes, Government of India (CBDT) vide a Notification No. 51/2022 dated 09.05.2022 has introduced the Income-tax (Fourteenth Amendment) Rules, 2022. With this amendment, CBDT  has amended Form 10A, Form 10AB, Form 10BD, Form 10BE, and Form 3CF related to charitable organizations registered or approved under section 10(23C), section 12AB, section 35, and section 80G of the Income-tax Act, 1961.

Know more about the Tax deductions on Donations

Amendment in Form 10A

Form 10A is prescribed for making an application for registration or provisional registration or approval or provisional approval of an institution or a fund under section 12A/12AB and section 80G of the Income-tax Act.

Amendments introduced vide the Income-Tax (Fourteenth Amendment) Rules, 2022 in Form 10A are as follows:

Rows 2a and 2b inserted in Form 10A

After row 2 in the existing Form 10A, two rows 2a and 2b are inserted to select a subcategory and to specify whether any registration or approval certificate is issued to the applicant earlier.

Rows 14a and 19a were inserted in Form 10A

Rows 14a and 19a are inserted in Form 10A to disclose the total amount of liabilities and the total amount of assets.

Changes in Instructions

The ‘Instructions to fill Form No. 10A’ is now substituted with the words ‘Notes to fill Form No. 10A’.

Form 10A is substituted with a new Note clause No. 2. This clause is related to the selection of section code in the application form.

New sub-category introduced

If the application is made with section code 14, 17, or 19 in row 2 of Form 10A, then the applicant needs to select the applicable sub-category.

New ‘Relation’ prescribed

Clause 8 of the Notes contains the list of ‘Relation’ for row 9a of the form. Along with the existing, the followings have been inserted:

Principal Officer, Person Competent to verify, Principal Secretary, Secretary, Chief Executive Officer, Chief Financial Officer, Manager, Representative Assessee, Any other Principal Officer, Managing director, authorized signatory.

Insertion of new Note for furnishing an affidavit:

A new Note 11A is inserted to prescribe furnishing an affidavit to the effect that the application has not been issued any registration certificate or approval earlier.

List of documents required to be attached:

Clause 12 of the Notes requires attached documents along with the application in Form 10A. The list of documents required to be attached has been substituted.

Amendment in Form 10BE

Form 10BE is prescribed for issuing a certificate of donation as per the provisions of section 80G(5)(ix) and section 35(1A)(ii) by the donee to the donor.

No major changes are notified vide the Income-tax (Fourteenth Amendment) Rules, 2022, the following are the changes in Form 10BE under this notification:

• The certificate in Form 10BE shall now include the Acknowledgement Number of Form 10BD filing.
• Row 4 and 5 prescribe the URN of the donee organization and the date of issuance of URN respectively.

Amendment in Form 3CF

Every donor to a scientific research association, a university, college, or other institution is entitled to get a deduction of one and one-fourth times the donations paid by them subject to conditions provided in the Income Tax Act

The association, university, college, or institution can use the donations for the following research purposes.

• Scientific research
• Research in social science or statistical research

To get the aforesaid benefit, a research association or a university, college, or other institution has to make an application in Form No. 3CF to the Central Government.

CBDT Relaxes Requirement of e-Filing of  Form No. 3CF

Following changes in Form 3CF are made by the Income-tax (Fourteenth Amendment) Rules, 2022.

Row 6b of Form 3CF

The details of any person who is not an individual are required to report in row 6a of Form 3CF.

Vide the Income-tax (Fourteenth Amendment) Rules, 2022, a new column is added in row 6b to specify the details of ‘Person other than an individual (as mentioned in row 6a) in which the beneficial ownership held’.

Other columns are kept unchanged in the form.

Row 7 of Form 3CF

Row 7 of Form 3CF requires reporting of details of laboratory/research facility/university/college/other institution being managed/controlled/administered/owned by the applicant. Vide the Income-tax (Fourteenth Amendment) Rules, 2022, a new column ‘ID Code’ is added in row 7 prior to the ‘Unique Identification Number’ column. Other columns are kept intact in the form.

Row 13 of Form 3CF

In the amended Form 3CF, a new column ‘Specific details of equipment is added in row 13 prior to the ‘Date of Acquisition’ column. Other columns are kept intact in the form.

Row 16 of Form 3CF

In the existing Form 3CF, the column patent/copyrights/trademarks application number or patent/copyrights/trademarks number with date is required to be given in rows 16a, 16b, and 16c. In the newly amended Form 3CF, the date is separated into a different field. Thus the patent/copyrights/trademarks number and date are required to be given in the separate columns. Rows 16d to 16g are kept intact in the form.

Row 29 of Form 3CF

The applicant needs to provide details of income received in three previous years immediately preceding the previous year in which the application is made.

In the newly amended form, the first column ‘Year’ is substituted with the words ‘Financial Year’. Other columns are kept intact in the form.

Other Changes

In the annexure to Form 3CF, a question is added to answer ‘Whether you are claiming exemption under section 10(21)? Yes /No’ prior to the existing sentence ‘To be furnished by a research association claiming exemption under section 10(21) Financial Year. _______________’.

Instructions to fill Form 3CF: The heading is changed to ‘Notes to fill Form No. 3CF’.

Amendment in Form 10AB

Form 10AB is prescribed for making an application for renewal of registration or approval before the expiry of the validity period. Further, if an organization is provisionally registered or approved then an application in this form is required to be made for regular registration or approval under section 12A/12AB and section 80G of the Income Tax Act.

• The existing row 9b is substituted to insert a new column for non-individual persons as mentioned in row 9a in which the beneficial ownership is held.
• Rows 20a and 25a were inserted in Form 10AB. This is related to disclosing the total amount of liabilities and the total amount of assets respectively in Form 10AB
• In the newly amended form, in Row 26 of Form 10AB, the first column ‘Year’ is substituted with the words ‘Previous Year’. Other columns are kept intact in the form.
• The ‘Instructions to fill Form No. 10AB’ shall now be read as ‘Notes to fill Form No. 10AB’.

Amendment in Form 10BD

Form 10BD is prescribed for furnishing an annual statement of donation as per the provisions of section 80G (5)(viii) and section 35(1A)(i) to provide the details of donors and donations received.

Form 10BD has two parts. Part A requires furnishing details of the donee organization or reporting entity.

Part B requires furnishing details of donors and donations. For the purpose of reporting Part B of Form 10BD, the income-tax department has provided an excel template from where data needs to be uploaded on the e-filing portal.

The existing Form 10BD does not prescribe providing information related to the pre-acknowledgment number, URN of registration or approval certificate in Form 10AC, and date of issuance of the URN. However, these fields are there in the excel template.

Therefore, the notified form and excel template for reporting donation data in Part B were in conflict. Thus, in order to synchronize the notified form and the excel template, the form is amended and these fields are now incorporated in Form 10BD.