Registration of Non-Government Organization (NGO) as business entityRead More...
Registration of Non-Government Organization (NGO) in DARPAN-NITI Aayog PortalRead More...
Registration of Non-Government Organization (NGO) to get tax exemption u/s 12AB/80GRead More...
other special registration required by NGORead More...
Mandatory Registration with MCA for Getting CSR FundingRead More...
|Trust||Society||Sec - 8 Company|
|Meaning||It is considered to be the oldest form of charitable organizations. It is, in essence, an arrangement between parties whereby one party holds ownership over property on behalf of another person||It is formed when a collection of people come together for initiating a common purpose- literary, scientific or charitable purpose. But it is not limited to charitable purposes but may extend to multiple other fields.||It is a company established with the purpose has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object and whereby they apply any profits into furthering the objective.|
|Governed by||Trust Act of each state. A trust is established under and governed by the Indian Trust Act, 1882 for private trusts. General law is applied for public trusts except in a few states such as Gujarat and Maharashtra, which have their own state laws||Societies Registration Act (State Law),1860||Companies Act, 2013|
|Registered as||NGO/NPO||NGO/NPO||NGO/NPO. But they enjoy all the privileges of a limited company without the need for them needing to add Pvt. Ltd. to the name.|
|Registration Authority||Deputy Registrar of the state||Registrar or Deputy Registrar of the particular state in which it is to be registered.||Registrar of Companies (ROC) or Regional Director|
|Members:||Minimum of 3 members and a maximum of 21 members||Minimum of 7 members and the maximum is unlimited||Minimum of 2 Directors/Shareholders|
|Jurisdiction:||Where the registered office of the Trust is situated. Before the Sub - Registrar or the District Registrar in the particular area or the Charity Commissioner.||Where the registered office of the Society is situated. Before the District Registrar in the particular area or the Charity Commissioner.||Online Registration|
|Document of constitution||Trust Deed||Memorandum of Association (MOA), By-Laws, Forms||MoA and AoA (Articles of Association)|
|Board:||Founder or Author of the Trust, Managing Trustees (Treasurer, Auditor, etc.)||Executive Committee (President, Secretary, Vice President, Treasurer), General Body (All members)||Directors|
|Legal right over the property||Held by the trustee||Held in the name of the society||Held in the name of the company|
|Property Management:||The properties of the Trust will be managed by the Trustees; however, the properties cannot be sold by the Trustees without obtaining the permission from the court.||The property of the Society vests in the name of the Society and the same can be sold as per the terms mentioned in the By-laws of the society. (E.g.: Approval from the Executive Committee Member)||The property of the company vests in the name of the Company and the same can be sold as per the rules mentioned under the Companies Act, (E.g.: With the consent of the Board of Directors in the form of a resolution)|
|Revocation/ Dissolution or Winding Up||The trust is usually irrevocable in nature. For reasons like disqualification of trustees, the absence of trustees, mismanagement of the trust, the trust can be merged with another trust having a similar objective with the permission of the court.||Dissolution as per the By-laws of the society, upon dissolution and after settlement of all debts and liabilities, the funds and property of the society may not be distributed among the members of the society; rather, the remaining funds and property must be given or transferred to some other society, preferably one with similar objects.||Dissolution as per the By-laws of the society, upon dissolution and after settlement of all debts and liabilities, the funds and property of the society may not be distributed among the members of the society, rather, the remaining funds and property must be given or transferred to some other society, preferably one with similar objects.|
|Annual Compliance||There is no annual filing but the board of trustee must keep the books and accounts proper. There are no mandatory yearly compliance to be met by a trust||Societies must file annually, with the Registrar of Societies, a list of the names, addresses and occupations of their managing committee members.||There is a requirement of annual compliance by the filing of annual accounts and the return of company with the RoC.(Registrar of the Companies)|
|Grants and subsidies from the government||Not much||Not much||Considerable (possible)|
|Preference in registration under FCRA||Low preference||Low preference||Preferred|
|Registration under The Income Tax Act, 1961||Allowed||Allowed||Allowed|
|Legal right over the property||Held by the trustee||Held in the name of the society||Held in the name of the company|
|Registration period (approximately)||15-20 days||20-25 days||30-45 days|
|Stamp duty||Dependent upon the state stamp duty Act a well as the total worth of the property involved in the matter.||None||None|
|S. No||Form No.||Rules||Purpose|
|1||Form No. 3CF||Rules 5C, 5D, 5E and 5F||Application for registration or approval|
|2||Form No. 10A||Rules 2C or 5CA or 11AA or 17A||Application for registration or provisional registration or intimation or approval or provisional approval|
|3||Form No. 10AB||Rule 2C or 11AA or 17A||Application for registration or approval|
|4||Form No. 10AC||Rule 2C or 11AA or 17A||Order for registration or provisional registration or approval or provisional approval|
|5||Form No. 10AD||Rule2C or 11AA or 17A||Order for registration or approval or rejection or cancellation|
|6||Form No. 10BD||Rule 18AB||e-Form for Statement of particulars to be filed by reporting person under clause (viii) of sub-section (5) of section 80G and clause (i) to sub-section (1A) of section 35 of the Income-tax Act, 1961|
|7||Form No.10BE||Rule 18AB||Certificate of donation under clause (ix) of sub-section (5) of section 80G and under clause (ii) to sub-section (1A) of section 35 of the Income-tax Act, 1961|
|Section||Amended Provisions||Amendments & Effective Date||Remarks|
|Sec. 12A||Clause (ac) of Sub-section (1)||Omitted w.e.f. 01-06-2020||Omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to its omission, clause (ac) was inserted by the Act No. 12 of 2020, w.e.f. 1-6-2020.|
|Inserted w.e.f. 01-04-2021||Re-introduced from 01-04-2021|
|“First Proviso” to sub-section (2)||Omitted w.e.f 01-06-2020||“First Proviso” omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to its omission, first proviso was amended by the Act No. 12 of 2020 w.e.f. 1-6-2020.|
|“Second Proviso” to sub-section (2)||Amended w.e.f. 01-06-2020||This now becomes the first proviso of section 12A (2). Reference to section 12AB omitted.|
|“Third Proviso” to sub-section (2)||Amended w.e.f. 01-06-2020||The existing third proviso has now become the second proviso and hence ‘"provided also" is substituted with "provided further".|
|“Fourth Proviso” to sub-section (2)||Amended w.e.f. 01-06-2020||Reference to section 12AB omitted.|
|“First Proviso” to sub-section (2), after the amendment by this Act||Amended w.e.f. 01-04-2021||Time-limit for applicability of exemption upon migration to new registration regime.|
|“Second Proviso” to sub-section (2)||Amended w.e.f. 01-04-2021||The existing second proviso will become the third proviso and hence "provided further" is substituted with ‘"provided also".|
|“Fourth Proviso” to sub-section (2)||Amended w.e.f. 01-04-2021||Reference to section 12AB inserted.|
|Sec. 12AA||Sub-Section (5)||Omitted w.e.f 01-06-2020||Omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to its omission sub-section (5) was inserted by the Act No. 12 of 2020 w.e.f. 1-6-2020.|
|Inserted w.e.f. 01-04-2021||This relates to Non-applicability of provisions of section 12AA. Earlier it was amended that the provisions of section 12AA would not apply from 01.06.2020. Now it has been amended to make it applicable from 01.04.2021. Thus, provisions of section 12AA will apply from 01-04-2021 and not from 01-06.2020.|
|Sec. 12AB||Entire Provisions||Omitted w.e.f 01-06-2020||Omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to its omission section 12AB was inserted by the Act No. 12 of 2020|
|Inserted w.e.f. 01-04-2021||This relates to procedure for fresh/new registration of a trust or institution. Earlier it was amended that the provisions of section 12AB would apply from 01.06.2020. Now it has been amended to make it applicable from 01.04.2021. Thus, provisions of section 12AB will apply from 01-04-2021 and not from 01-06.2020.|
|Sec. 56||Clause (v), Clause (vi), Clause (vii) and Clause (x) of Sub-Section (2)||Omitted w.e.f 01-06-2020||Reference to section 12AB omitted.|
|Inserted w.e.f. 01-04-2021||Reference to section 12AB inserted.|
|Sec. 80G||In sub-section (2), in clause (a), in sub-clause (iiia)||Inserted w.e.f. 01-04-2020Inserted w.e.f. 01-04-2020||PM CARES FUND included for 100% deduction without any limit|
|Clauses (vi) of sub-section (5)||Amended w.e.f. 01-06-2020||Approval procedure amended and the provision as it stood prior to 01.06.2020 reintroduced.|
|Clauses (vi) of sub-section (5)||Amended w.e.f. 01-04-2021||Approval procedure amended and the provision as it stood as on 01.06.2020 introduced.|
|Clauses (viii) and (ix) of sub-section (5)||Omitted w.e.f 01-06-2020||Omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to their omission clauses (viii) and (ix) were inserted by the Act No. 12 of 2020 w.e.f. 1-6-2020.|
|Clauses (viii) and (ix) of sub-section (5)||Inserted w.e.f. 01-04-2021||Clause (viii) relates to furnishing of a statement of donation received from donors. Clause (ix) relates to furnishing certificates of donation to donors.
Earlier these provisions were introduced by FA, 2020 to apply from 01.06.2020. Now it has been amended to make it applicable from 01.04.2021. Thus, these provisions will apply from 01-04-2021 and not from 01-06.2020.
Further, the procedure for obtaining approval in case of an approved fund is deferred to 01.04.2021. These provisions related to fresh approval will now be applicable from 01.04.2021 instead of 01.06.2020 introduced earlier vide Finance Act, 2020.
|Sub-section (5E)||Omitted w.e.f 01-06-2020||Omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to its omission sub-section (5E) was inserted by the Act No. 12 of 2020 w.e.f. 1-6-2020.|
|Inserted w.e.f. 01-04-2021||This relates to applicability of new approval provisions for pending approval application as on 01.04.2021.|
|Explanation 2A||Omitted w.e.f 01-06-2020||Omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to its omission sub-section (5E) was inserted by the Act No. 12 of 2020 w.e.f. 1-6-2020.|
|Inserted w.e.f. 01-04-2021||This relates to allowability of deduction for donation to donors on the basis of information furnished to income tax authority.|
|Sec. 115BBDA||Omitted w.e.f 01-06-2020||Reference to section 12AB omitted.|
|Inserted w.e.f. 01-04-2021||Reference to section 12AB inserted.|
|Sec. 271K||Entire Provisions||Omitted w.e.f 01-06-2020||Omitted by the Act No. 38 of 2020, w.e.f. 1-6-2020. Prior to its omission section 271K was inserted by the Act No. 12 of 2020 w.e.f. 1-6-2020.|
|Inserted w.e.f. 01-04-2021||This relates to imposition of penalty for failure to furnish statement of donations u/s 80G(5)(viii) or failure to furnish certificate u/s 80G(5)(ix), section 35, etc.|
The Central Board of Direct Taxes (CBDT) has notified that Form 10G, 56, 3CF-I, 3CF-II and 3CF-III ceased to be effective on or after the 1 April, 2021.
Application for grant of approval to fund or institution under clause (vi) of sub-section (5) of section 80G of the Income-tax Act, 1961.
Earlier 10G form for 80G registration has been withdrawn; the same can be applied now with Form 10A or 10AB as the case may be. The application from 10A or 10AB as the case may be shall be accompanied by the various documents, as required by Form Nos. 10A or 10AB, as the case may be, namely where
It is noteworthy that similar amendment has been done in section 80G, where existing registration or new registration can be renewed/ applied by filing application 10A or 10AB as the case may be. Moreover trust or institutions who have been granted 80G registration needs to file a statement containing details of donations received in Form No. 10BD and a certificate in Form 10BE needs to be issued to donors.
Cancellation of the approval granted in Form No. 10AC and Unique Registration Number(URN): If, at any point of time, it is noticed that Form No. 10A
|2||Form 56||The application for grant of exemption or continuance under section 10(23C) (iv) and (v) for the year has been omitted by the CBDT, instead Form 3CF can be used.|
|3||Form 3CF-I, 3CF-II and 3CF-III||Form No. 3CF-I/II and Form No. 3CF-III has been substituted by ‘Form No. 3CF’ under Rules 5C , 5D, 5E and 5F respectively of the Income-Tax Rules, 1962 and manner of furnishing the same has been introduced with regard to deductions of expenditure on scientific research. Form No 3CF is required to be furnished online electronically. Form 3CF shall be verified by the person who is authorized to verify the return of income under section 140 of the Act with digital signature (DSC) or EVC. If the return of income of the applicant is required to be furnished under digital signature, then furnishing Form 3CF with DSC is compulsory else the forms can be furnished with EVC.|
|Sub-clause of clause (ac) of section 12A(1)||Category of Entity||Time limit for filing application for registration||Applicable Form||Time limit for passing order|
|1||Trusts or institutions which are having existing registration u/s 12A or 12AA (Migration from section 12A/12AA to section 12AB)||Within 3 months from 1st April, 2021 i.e. up to 30th June, 2021||Form 10A||Within 3 months from the end of the month in which the application is received|
|2||Trusts or institutions which are registered under section 12AB and the period of the said registration is due to expire||Atleast 6 months before the expiry of the said period||Form 10AB||Within 6 months from the end of the month in which the application was received|
|3||New trusts or institutions which have been granted provisional registration under section 12AB (Trusts opting for provisional to final registration for 5 years)||Atleast 6 months before the expiry of the provisional registration or within 6 months of commencement of its activities, whichever is earlier||Form 10AB||Within 6 months from the end of the month in which the application was received|
|4||Trusts or institutions whose registration has become inoperative due to first proviso to section 11(7) of the Act. Registration u/s 12A or 12AA shall become inoperative from the date on which the trust or institution is granted registration u/s 10(23C)||Atleast 6months before the commencement of the assessment year from which the said registration is sought to be made operative||Form 10AB||Within 6 months from the end of the month in which the application was received|
|5||Trusts or institutions who has adopted or undertaken modifications of the objects which do not conform the conditions of registration||Within a period of 30 days from the date of adoption or modification||Form 10AB||Within 6 months from the end of the month in which the application was received|
|6||In any other case (including fresh provisional registration)||Atleast 1 month before commencement of the previous year relevant to assessment year from which the said registration is sought||Form 10A||Within 1 month from the end of the month in which the application is received|
(i) Time limit to make an application for re-registration under different situations-
|Section 12A(1)(ac)||Situations||Time Limit|
|(i)||Where a trust or institution is registered under section 12A or 12AA||Application shall be made within 31st August, 2020 (within 3 months from 01.06.2020)|
|(ii)||Where a trust or institution is registered under section 12AB||Application shall be made at least 6 months prior to the expiry date of 5 years|
|(iii)||Where a trust or institution is provisionally registered under section 12AB||Application shall be made-
(a) at least 6 months prior to the expiry date of provisional registration, or
(b) within 6 months of commencement of its activities,
whichever is earlier.
|(iv)||Where registration of a trust or institution has become inoperative||Application shall be made at least 6 months prior to the commencement of the assessment year – From which registration is to be made operative|
|(v)||Where the trust or institution has modified the objectives||Application shall be made within a period of 30 days from the date of such modification|
|(vi)||In any other case||Application shall be made at least 1 month prior to the commencement of the previous year relevant to the assessment year from which the registration is sought|
(ii) Time limit to file Tax Audit Report Preponed-
|Tax Audit Report||Time Limit|
|Where a trust or institution is required to file Tax Audit Report u/s 12A||Such Tax Audit Report shall be filed within one month prior to the due date of filing of return u/s 139(4A) read with section 139(1)
The due date for filing of return of income in Tax Audit cases is extended to 31st October. Hence, Tax Audit Report shall be furnished by 30th September.
(iii) Applicability of exemption u/s 11 and u/s 12-
|Section 12A(1)(ac)||Situations||Applicability of Exemption u/s 11 & u/s 12|
|(i)||Where a trust or institution is registered under section 12A or 12AA||From the assessment year from which registration was earlier granted to the trust or institution|
|(ii)||Where a trust or institution is provisionally registered under section 12AB||From the first assessment year in which provisional registration was granted|
(iv) The existing provisos to section 12A (2) have been suitably amended so as to make a reference of new section 12AB.
Benefits of 12AB Registration
|Last Date for Application|
|For Existing Registered Entities:||June 30, 2021|
|Fresh Registration:||At Least One Month Prior To Financial Year|
|Final Registration:||Atleast six months before the expiry of Provisional Registration or within six months from commencement of the activities.|
|Renewal of Registration:||Atleast Six Months before the Expiry of Registration|
|If Any Of The Deadlines Is Missed, The Entity Shall First Apply For Provisional Registration and Then Final Registration Can Be Sought.|
Benefits of 80AB Registration
The first step is the one where the online portal of FCRA needs to be accessed.
(Application for FCRA Registration) orForm FC – 3B
(Application for FCRA Prior Permission) is to be clicked on, as the case may be.
(Application for FCRA Prior Permission) is to be clicked on, as the case may be.
Once the “Apply Online” option is selected, the next step is to create a username and password by clicking on “Sign Up”.
Once a username and a password have been created, and the message regarding the same is displayed on the screen, the applicant may log in to the account
Once logged in, the “I am applying for” will have a dropdown list from which FCRA Registration has to be chosen. “Apply Online” is to be selected next, following which “Proceed Registration” has to be selected.
Next, in the title bar, the FC-3 menu is to be clicked on to start the new registration procedure.
This gives way to the association form where the relevant details have to be entered by the applicant along with the attachments containing the following documents:-
The Executive Committee option has to be selected next from the menu bar. The details will be filled in the Executive Committee form.
The option “Add details of Key Functionary” enables the applicant to add/delete/edit the details entered in the Executive Committee.
Once all the Executive Committee details are entered in, the “Save” button must be clicked on
Further, bank details will have to be provided, including bank name, account number, IFSC code and address of the bank.
Once the bank details are entered in, all the required documents are to be uploaded in PDF format.
The place and date need to be entered in next after which the final submission button may be selected.
The final step is to make the online payment by clicking on that particular button. Once the payment is made and the form is submitted, no changes can be made to the said form.
|S. No||Section Name||Field Name||Instructions|
|1.||Nature of the Entity||Select the nature of entity which requires registration for undertaking CSR activities from the available options.|
|2.||(a), (a) (i)||Whether the Entity is established by any company or group of companies||In case the entity is established by a company or group of companies, provide the CIN(s) of such companies. Up to 5 CINs can be provided here.|
|2.||(b)(ii)||If no, whether the entity has an established track record of three years in undertaking similar activities||Select whether the entity has a track record of three years in undertaking similar activities. Form can be filed by a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961) only if ‘Yes’ is selected in either 2(a) or 2(b)(i)|
|3.||(a)||Type of existing entity CIN/ Registration Number||Enter CIN of a valid Section 8 company in case type of existing entity is ‘Section 8 company’. Enter Registration Number in case type of existing entity is other than ‘Section 8 company’.|
|(b), (c) and (d)||Name, Date of Incorporation and Address of the entity||The details shall be Pre-filled in case of a Section 8 company. Else, these details need to be entered.|
|(e)||E-mail ID of the entity||Enter the email ID of the OTP. Please note that the same will be verified by OTP.|
|Send OTP||This button will be enabled only after successful Pre-scrutiny of the form. Click on this button to send OTP to the entity’s email ID. Further, please note that OTP can be successfully sent to the email ID against one form, for a maximum of 10 times in one day. OTP shall be valid for a span of 30minutes. For further chances, you may download a fresh form on the same day or try next day.|
|(f)||Enter OTP for email ID||Enter the OTP received on entity’s email ID|
|(a)||PAN of the entity||Enter PAN (Permanent Account Number) of the entity.|
|4.||Details of Directors/ Board of Trustees/ Chairman/ CEO/ Secretary/ Authorized Representatives of the entity||Enter the Name, Designation, DIN/ PAN and email ID of the Directors/ Board of Trustees/ Chairman/ CEO/ Secretary/ Authorized Representatives of the entity. Please note that DIN or PAN must be valid and associated with the entity. Maximum of 10 rows shall be available.|
|Declaration||I am authorized by the ………… with the documents maintained by the Entity.||Enter the resolution number and date authorizing the signatory to sign, give declaration and submit the e-Form.|
|To be digitally signed by||DSC & Designation||Ensure the form is digitally signed either by the Director in case of a Section 8 company. The person should have registered his/her DSC with MCA by using the following link (www.mca.gov.in). If not already register, then please register before signing this form. Disqualified Director should not sign the form.|
|DIN of the director; or DIN or PAN of the Trustee or CEO or Chairperson or Chief functionary or authorized representative of the Entity||In case the person digitally signing the e-Form is a Director – Enter the approved DIN. In case the person digitally signing the e-Form is a Trustee or CEO or Chairperson or Chief functionary or Authorized Representative of the Entity – Enter the PAN.|
|Certificate by Practicing Professional||I declare that I have been ………………………. has been suppressed. I further certify that: 1… 2. 3. …… ., If any found at any stage.||Ensure the e-Form is digitally signed by a Chartered Accountant/ Cost Accountant or Company Secretary in whole-time practice. Enter the details of the practicing professional and attach the digital signature.|
|Pre-Fill||The Pre-fill button can appear more than once in an e-Form. The button appears next to a field that can be automatically filled using the MCA database. Click this button to populate the field. Note: You are required to be connected to the Internet to use the Pre-fill functionality.|
|Attach||Click this document to browse and select a document that needs to be attached to the e-Form. All the attachments should be scanned in pdf format. You have to click the attach button corresponding to the document you are making an attachment. In case you wish to attach any other document, please click the optional attach button.|
|Remove Attachment||You can view the attachments added to the e-Form in the List of attachment field. To remove any attachment from the e-Form, select the attachment in the List of attachment field and click the Remove attachment button.|
|Modify||The Modify button is enabled, after you have checked the e-Form using the Check Form button. To make changes to the filled and checked form:
Select Name Of Trust: Choose appropriate name for your Trust. While choosing name ensure that name of Trust should not be under the restricted list of names as per the Provision of Emblem and Names Act, 1950
Select and determine number of Trustees: Determine the trustees for your trust. Minimum number of trustees should be 2 (Two). There is no restriction on maximum number of trustees in the Trust Act.
Prepare Trust Deed: Prepare Memorandum of Association and Rules & Regulation (Buy-Laws) for your trust which is also known as Trust Deed. This instrument is very essential as it is the legal evidence of your trust formation. Deed shall be prepared on stamp paper of appropriate value. Value of Stamp paper shall be certain percentage of total value of trust property which varies from State to State.
Preparing Memorandum Of Association: For Trust registration it is important to formulate the Memorandum of Association as it represents the charter of the Trust
Register With Sub-Registrar: For registration of trust deed, Trustees and Author of trust along with 2 witnesses required to present before sub-registrar office have having jurisdiction based on registered office of the Trust along with properly attested photocopy of trust deed and have to pay registration fee for this purpose. Proof of registered address and NOC of Landlord (if Rented) should be attached with the Trust Deed.
Obtain The Registration Certificate: After submitting the Trust Deed with the registrar, the registrar keeps the photocopy and returns the original registered copy of the Trust Deed to the applicant, and also issues the certificate within seven working days.
Apply For PAN & TAN Of Trust: On registration of Trust Deed, the logical step is to apply for PAN & TAN of Trust and to open Bank Account for the trust.
Income of registered NGOs either as Public Trust or Society or Section 8 Company are exempted from the tax. Tax exemptions can only be provided to the registered trust under new Section 12 AB and 80G of the Income Tax Act. Income Tax registration is mandatory to avail certain tax exemption. It is mandatory for a trust to get the registration under section 12AB of the Income-tax Act, 1961 so as to claim exemption under Section 11. Credibility will be more if the trust is registered as it involves money of individuals in the form of donations. When the NGO gets enlisted under section 12A, the entire tax of the charitable firm is exempted throughout lifetime. If it gets registered under section 80G, then the donor gets 50% tax rebate of donated amount while giving donation to that NGO. Section 12AA provides the procedure relating to registration of a trust or institution engaged in charitable activities
Click on the menu “Income Tax Forms” under “e-File” tab in the main menu
Select the Form Name as “Form 10A” and relevant Assessment Year from the drop down list provided in Form No. 10A
Now, one needs to select the option of “Prepare and Submit online” in submission mode.
Fill in the required details in the form and attach the required and applicable attachments. (The form is self explanatory and can be completed in easy mode)
After all completion, assesse ma click the “Submit” button using digital signatures or Electronic Verification Code (EVC) as required while return filing.
In case the applicant is already registered u/s 12AA or in case of provisional registration, where Form No.
In case the applicant is already registered u/s 12AA or in case of provisional registration, where Form No.
In case the applicant is already registered u/s 12AA or in case of provisional registration, where Form No.
1. Rejection and cancellation of registration- The PCIT or CIT has the power to reject the application for registration of a trust or institution under section 12AB(1)–
|Situations||Power to reject the application for registration|
|Where the registration has become inoperative||Such an application can be rejected by the PCIT/CIT if the PCIT/CIT is not satisfied about the- i) Objects of the trust or institution ii) Genuineness of the activities of the trust or institution iii) Compliances under any other law which are material for the purpose of achieving the objects of the trust or institution. Before rejecting the application, the trust or institution must be given a reasonable opportunity of being heard.|
|Where the trust or institution is registered under section 12AB and has modified its objects which do not conform to the conditions of registration||Such an application can be rejected by the PCIT/CIT if the PCIT/CIT is not satisfied about the- i) Objects of the trust or institution ii) Genuineness of the activities of the trust or institution iii) Compliances under any other law which are material for the purpose of achieving the objects of the trust or institution. Before rejecting the application, the trust or institution must be given a reasonable opportunity of being heard.|
|Where the trust or institution is registered under section 12AB and the trust or institution has applied for renewal of its registration after 5 years||Such an application can be rejected by the PCIT/CIT if the PCIT/CIT is not satisfied about the- i) Objects of the trust or institution ii) Genuineness of the activities of the trust or institution iii) Compliances under any other law which are material for the purpose of achieving the objects of the trust or institution. Before rejecting the application, the trust or institution must be given a reasonable opportunity of being heard.|
|Where the trust or institution is provisionally registered under section 12AB and it applies for conversion of provisional registration to normal registration/td>||Such an application can be rejected by the PCIT/CIT if the PCIT/CIT is not satisfied about the- i) Objects of the trust or institution ii) Genuineness of the activities of the trust or institution iii) Compliances under any other law which are material for the purpose of achieving the objects of the trust or institution. Before rejecting the application, the trust or institution must be given a reasonable opportunity of being heard|
|Particular||Period for filing application
|Form for registration||Effective date of Approvalb||Time limit for passing an order|
|Non-profit organizations who are provisionally approved||At least 6 months prior to expiry of the period of approval||Form 10AB||From the financial years for which provisional approval was received||Before expiry of the period of 6 months from the end of the month in which the application was received|
|Before expiry of the period of 6 months from the end of the month in which the application was received||Within 3 months from 1st April, 2021||Form 10A||From the financial year in which approval was originally granted||Before expiry of the period of 3 months from the end of the month in which the application was received|
|Non-profit organizations approved under newly inserted Rules through notification 19/2021 dated 26st March 2021||At least 6 months prior to expiry of the period of approval||Form 10AB||From the financial year in which registration application is made||Before expiry of the period of 6 months from the end of the month in which the application was received|
|In any other case (including new registration)||At least one month prior to the commencement of the Financial year for which approval is sought||Form 10A||From the financial year in which registration application is made||Before expiry of the period of 1 months from the end of the month in which the application was received|
|Circumstances.||Timeline for filing of application|
|Where Trusts has adopted or modified the objects||Within 30 days from the date of such adoption / modification of objects|
|Trust obtained subsequent registration u/s 12AB||At least 6 months prior to date of expiry|
|Where registration of Trust has become inoperative due to Section 11(7) of the Act||6 months prior to commencement of the AY from which said registration is sought to be made operative|
|Existing Trusts registered u/s 12A or Section 12AA of the Act||On or before 30th June 2021.|
|Trusts provisionally registered u/s 12AB of the Act||Earlier of the Following 6 months prior to the date of expiry; or Within 6 months of commencement of activities.|
|Any other case (including new registration)||At least 1 month prior to the commencement of FY, thereby a provisional registration shall be granted for a period of three years.|
|Category of income||Income subject to tax||Taxability|
|Donations/voluntary contributions||Voluntary contribution without such specific direction||Forms part of income from property held under tr|
|Voluntary contributions with a specific direction to form part of corpus of trust or institution
Voluntary contribution without such specific direction
Forms part of income from property held under trust
|Anonymous donations i.e., donations where persons getting donations does not maintain record of identity/any particulars of the donor||Donation exceeding higher of:
||Taxed at 30%|
|Anonymous donation received by trust established wholly for religious and charitable purpose on||Taxable in the same manner as voluntary contributions (without specific direction) as above||Exempt*|
|Income from property held under trust for charitable or religious purpose||Income applied for charitable or religious purpose in India||Exempt*|
|Income accumulated or set aside for the application towards charitable or religious purpose in India||Exempt* to the extent of 15% of such income. This means at-least 85% of income from property to be applied for charitable and religious purpose in India as above and balance 15% can be accumulated or set aside. [See below comment on 85%]|
|Income from property held under trust created for charitable purpose which tends to promote international welfare in which India is interested||CBDT either by general or special order has directed that such income shall not be included in the total income of trust.||Exempt*|
|Capital gain from asset held under trust in whole||Net consideration is utilized fully for acquiring another capital asset||Entire capital gain is deemed to have been applied for charitable and religious purpose and hence is exempt*|
|Net consideration is utilized partially for acquiring another capital asset||Capital gain utilized in excess of cost of old asset transferred is considered to have been applied for charitable and religious purpose and is exempt*|
Income distributed by business trust to its unit holders as interest or dividend shall be treated as income of the unit holder and if principal is repaid to unit holders by the trust, it shall be treated as capital receipts in the hands of unit holders. For retail investor portfolios, it offers a diversification of risk from regular asset classes like equity, debt and gold. Even within the real estate/infrastructure sector, it is possible for investors to lay their hands on a very high quality and diversified portfolio of real estate assets. Advice from experts, professionals and wealth managers should be assisted before making any investment decisions.
Selection of a provisional committee and Chief Promoter: A Society can be created by a minimum of 7 or more persons having a similar interest with the same objective for their mutual benefit. When the members are decided, a provisional committee in which everyone mutually agrees has to be formed. Out of which a person will be selected as a chief promoter.
Choosing A Name For Society: While selecting a name for the society, it is essential to keep in mind that as per Societies Act, 1860, that name should be unique and un-identical. Further the name proposed by the applicant must also not suggest patronage of the Government of India or any State Government or attract the provisions of Emblem and Names Act, 1950. It is to be noted that the name has to be in line with the laws.
Preparing The Memorandum Of A Society: While registering the society, an applicant shall prepare the Memorandum of society. The Memorandum of the Society along with the Rules and Regulations of the Society must then be signed by each of the founding members, witnessed by-An Oath Commissioner, Notary Public, Gazetted Officer, Advocate, Chartered Accountant or Magistrate 1st Class with their official stamp and complete address.
Prepare Documents:An applicant shall prepare the below-mentioned documents required for Society registration. The documents shall be duly signed viz.- Name of the society, Address proof of the working space, Identity proof of all the 9 members, 2 copies of the Memorandum of Association and By-laws of the society
Filing Of Application:Upon the name selection, the members have to make an application to the Registration authority. It must contain the details like intent to form the society, name of the society for approval, and the chief promoter’s details.The entrance fee and share capital have to be collected from. It has to be as per the law or as prescribed by the members themselves. An applicant shall file the signed Memorandum and Rules and Regulations with the concerned Registrar of Societies in the State with the prescribed fee
Open a bank account : The next step would be to open a bank account for the promoter of the registering authority. It has to be in the name of the society and the amount has to be deposited in the account. Also, a certificate should be obtained from the bank.
Registration of the society is the next step upon completing banking formalities. The documents required for this are: list of promoter members, bank certificate, copies of affidavits and documents specified by the Registrar, copies of the byelaws and explanation of the working of the society
Post submission of the documents, the Registrar has to verify and approve all of them. If any discrepancies are found or any additional information is required, then the same has to be provided within the timeframe.
Get Society Certification: Finally, when all the legal requirements are met and authorities satisfied, the notification about the society’s registration will be published in the official gazette of the State and Central government. The
Reserve Name under RUN: First steps while registering any type of NGO is selection of name. It should be identical/unique (you can use Noun instead of adjective while choosing name) from others and don’t forgot to use Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust, in its name. No requirement to use a Digital Signature Certificate (DSC) during name reservation. It can be reserved on MCA site under RUN which cost you ₹1,000/- and you can propose two names at a time. It will give you one more chance of resubmission in case it doesn’t fulfill the criteria. Name will be valid for 20 days from the date of approval by CRC.
Digital Signatures (DS): It is required by all the proposed directors of the company as the forms for registration process are filed online and should be signed digitally. It is issued by government recognized certifying agencies and cost vary from agencies to agencies.
Apply for Director Identification number (DIN): Application for allotment of DIN has to be made through Form DIR-3. It requires general information about the director with scanned copy of the necessary documents like self-attested copy of PAN, Identity and Address proof. Same can be submitted online on the.MCA Portal. It should be attested by a practicing professional like CA/CS/CWA.
License to operate as Section 8 company: To simplify the process of Section 8 companies incorporation or license to operate, Companies (Incorporation) 6th Amendment Rules 2019 dated 7th Jun 19 has dispensed off the requirement of filing INC-12. Application for License is now merged with SPICe Plus Form. Application of license for the Section 8 Company with SPICe Form along with Name Approval Letter received from CRC, draft of MOA & AOA, estimate of future annual Income & Expenditure for next 3 years, declaration as per Form INC-15 & INC-14 Below forms needs to be attached with form Mandatory documents: 1. Memorandum of Association i.e. form no. SPICe_MoA 2. Articles of Association i.e. form no. SPICe_AoA 3. Declaration by first subscriber(s) and director(s) (Affidavit is not required to be attached) Optional documents: 1. Proof of Office address (Conveyance/ Lease deed/Rent Agreement etc. along with rent receipts) 2. Copy of the utility bills (not older than two months) 3. Interest of first director(s) in other entities 4. Declaration in Form No. INC-14 5. Declaration in Form No. INC-15 Above document need to be signed by all the directors and then by practicing CA/CS/CWA
Application For Incorporation Of Company: Application for incorporation to be made in SPICe Plus “Part B” along with various attachments as stated above
Forms needs to be submitted at MCA site:Simplified Proforma for Incorporating Company Electronically (SPICe) – with mandatory PAN & TAN application included (Form SPICe). This form require below information like: i. Address of NGO ii. Address of all directors iii. Interest of directors in other entities iv. Category of the company like limited by share/guarantee/unlimited v. Shares subscribed by each director vi. DIN number of director
Application For Commencement Of Business:After receiving Certificate of Incorporation Directors of Company require to file a Declaration in e-Form INC-20A with ROC within 180 Days from the date of Incorporation.
As all three NGO models are regulated by separate acts there are many distinct features of every model. One can choose a working model based on their personal requirement and preference, along with scale and diversity of operations.
There are many reasons why it is better to register an NGO. One of the most important reasons is funds. As an NGO you will receive funds from various quarters. The money you get from donors has to be put in a bank. To open a bank account under a company or an NGO, you need to have some documents. The registration of an NGO provides you with documents to show that funds are received in the NGO's name.
Check NGO registration status online with the help of the NGO DARPAN portal. Follow the instruction:
Documents required for online NGO registration in India are:
Besides social service there are more benefits associated with an NGO registration in India. Some of them are discussed below:
Yes, you are allowed to register under NGO DARPAN. There is no time limit prescribed. If you have valid PAN Card and registration certificate of NGO then you are allowed to register.
No, as such there is no annual compliance after NGO DARPAN Registration, however, you have to update the latest governing body details as and when there is any change in it and has to update grant related information on annual basis.
The application for registration shall be made in the following Form, namely: - Form No. 10A in case of application under sub-clause (i) or (vi) of clause (ac)of sub-section (1) of section 12A to the Principal Commissioner or Commissioner authorized by the Board; or (ii) Form No. 10AB in case of application under sub-clause (ii) or (iii) or (iv) or (v) of clause (ac) of sub-section (1) of section 12A to the Principal Commissioner or Commissioner under the said clause. The normal/final registration shall remain valid for a period of five years – as per the provisions discussed for an already registered trust under new regime of 12 AB. Trusts provisionally registered u/s 12AB of the Act Earlier of the following:
When is registration ordinarily refused by the CIT (Commission of Income Tax)?
Yes, the charitable institution or NGO should obtain a registration under the Income Tax Act for claiming tax exemption.
As a result of registration u/s 12AB, old registration under section 80G, 12A, and other related section will cease to exists and a new section 12AB will come into force w.e.f.
The date of grant of registration under section 12AB of Income Tax Act or The last day by which the application for registration and approval is required to be made, whichever is earlier.
In order to continue availing exemption under section 10 or 11 (as the case may be), all the existing charitable and religious institutions (including NGOs) which are registered or approved under the following section
are compulsorily required to move to section 12AB for fresh registration.
Any NGO, a Section 8 corporation or charitable trust can apply for registration under Section 12 A if it wants to get an exemption from income tax. Without the 12A certificate for NGO, the receipts of the NGO will be entitled to normal tax rates. On the other hand, a registration under section 80G of the Income Tax Act provides tax benefits (80G deduction) to the donor of an NGO.
You can apply for both the 12A certificate for NGO and registration under section 80G together or separately. If you wish to apply for them separately, you must apply first for 12A registration. As per the Income Tax Act, 1961, 12A registration Any NGO, a Section 8 corporation or charitable trust can apply for registration under Section
NGO is mandatorily required to acquire FCRA registration under Foreign Contribution (Regulation) Act, 2010 in order to accept any kind of foreign grants.
Following person can become a member at the time of NGI registration;
Following is the list of documents needed to be submitted along with Form No. 10A/10AB –
A donor can claim a deduction under section 80G of the Income Tax Act for donations to a registered charitable institution or NGO.
The trust deed should be in writing and should carry the signatures of the trustees and author of the trust.
You need to apply for revalidation of 12 A and 80G deduction through the prescribed online process. The online form will focus on whether the charitable activities taken up by your NGO are genuine. Once you apply for revalidation, an order granting the registration will be issued within 3 months.
The Finance Act, 2020 replaced section 12AA with section 12AB, but the registration procedure and power and scope of verification/examination remains similar. Therefore, all the available case laws pertaining to section 12AA may also apply to registration under the new section 12AB.
In Form No. 10AB, within a period of 30 days from the date of the said adoption or modification, the registration can be renewed. Accordingly all cases where trust, societies or institutions have existing registration under section 12AA need to apply for registration under section 12AB online by 30.06. 2021 by filing form 10A.
As a result of registration under section 12AB of Income Tax, old registration under section 80G, 12A, and other related section will cease to exists and a new section 12AB will come into force w.e.f.-
Whichever is earlier
The new registration procedure prescribed under section 12AB was supposed to be made applicable from 01.06.2020 and was supposed to be completed by 31.08.2020 which was firstly deferred and extended to 01.10.2020 and end by 31.12.2020.
But considering the current pandemic situation, it has been extended to 01.04.2021, and hence now all existing trusts have to re-register themselves under section 12AB from 01.04.2021 and before the end of three months from the 1st Day of April 2021.
The application shall be made online, to The Commissioner or Principal Commissioner of Income Tax who shall pass an order granting approval or rejection within three months from the date of commencement of the new provision.
For rejection, if appropriate authority satisfied that the applicants have not complied with the objects mentioned, shall cancel the application by providing a reasonable opportunity of being heard.
The registration once granted shall be valid for 5 Years.
In case the applicant is already registered u/s 12AA or in case of provisional registration, where Form No. 10A has been submitted by the applicant: - Order granting registration shall be granted in writing in Form No. 10AC. A 16-digit alphanumeric Unique Registration Number (URN) shall be allotted on successful registration. In cases where Form No. 10AB has been filed, order granting registration or rejection or cancellation shall be in Form No. 10AD
Form No. 10A or 10AB, as the case may be is required to be digitally signed, only where the Income Tax Return of the Trust/institution is required to be furnished with digital signature
In other cases, the forms may be submitted with Electronic Verification Code (EVC)