Taxmann’s webinar on New Procedure for Registration of Trusts and NGOs In this Webinar, the speakers have analysed the new procedure, forms and rules for registration & approval of NGOs w.e.f. 01-04-2021 under the Income-tax Act. Coverage of the webinar: • Legal Provisions for registration & approval • Issues in provisional registration and renewal of registration • Status of registration applications pending on 01-04-2021 • Discussion on new forms and rules for registration • Guide to apply for registration • Powers of PCIT or CIT while examining the registration application • Filing of Statement of donations and issuing certificate of donations • Controversial Issues arising out of new rules • QnA Session

1. New procedure for registration of
TRUSTS AND NGOs
Speakers:
Dr. Manoj Fogla | CA. Suresh Kejriwal | CA. Tarun Kumar
Date: 13th April, 2021 | Timing : 11:00 am to 12:00 pm

2. TIPS FOR ATTENDEES.
Your mike is on mute. You will not be able to
communicate during the session.
However, you may post your questions in the chat box
given on your right-hand side.
Your questions will be answered by the speaker after
the session or during the session by the R&D Team.
After the session, you will get the copy of this
presentation for your future references.
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3. AGENDA FOR WEBINAR.
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Topics Speaker
Introductory Remarks Dr. Manoj Fogla
New Scheme of Registration
CA. Tarun Kumar
Income Tax (6th amendment Rules, 2021)
Form 10A
Form 10AB
Practical Aspects of Form 10A and 10AB
CA. Suresh Kejriwal
Filing of Statement of donations
Controversial Issues Dr. Manoj Fogla & CA. Suresh Kejriwal
Q & A Session Dr. Manoj Fogla & CA. Suresh Kejriwal

4. 1. NEW SCHEME OF REGISTRATION

5. OVERVIEW OF NEW SCHEME OF REGISTRATION.
NGOs are required to get registered under section 12A/12AA or to obtain approval under section 10(23) to claim
various exemptions and under Section 80G to provide deductions to donors.
The Finance Act 2020 has introduced substantial changes to the provisions of registration of NGOs. A new
section 12AB replaces the existing section 12AA. Similar amendments have been made to section 10(23C) and
Section 80G. These changes are effective from 1st April 2021.
Registration and approvals of NGOs shall be completely electronic under which a 16 digit URN shall be issued to
all new and existing charity institutions.
NGOs registered prior to 01-04-2021 are required to make an application again under new scheme of
registration.
Concept of perpetuity of registration is withdrawn under the new scheme. The registration under new scheme
shall be valid for a specified period, that is, up to 3 years for provisional cases and maximum period of 5 years for
final registration.
Registration is required to be renewed after every 5 years.
Concept of provisional registration introduced for new charity institutions which are yet to start their charitable
activities.
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6. RE-REGISTRATION.
Order granting registration shall be passed within 3 months from the end of month in which application for
such registration is filed.
IS YOUR NGO
EXISTING
BEFORE
01-04-2021?
No Action
Required.
IS YOUR NGO REGISTERED
U/S 12A/12AA OR
APPROVED U/S
10(23C) OR 80G?
FILE AN
APPLICATION
AGAIN FOR
REGISTRATION
BY 30.06.2021.
YES
File an application under
new provisions,
if registration is desired.
Registration shall be
granted for 5 years
without
any enquiries by PCIT/CIT.
YES
NO
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7. PROVISIONAL REGISTRATION.
Concept of provisional registration is meant for new charity institutions which are yet to start their
charitable activities.
Application for registration to be made at least 1 month before the commencement of previous year
Provisional registration shall be granted for 3 years without any enquiries by PCIT/CIT.
Application to be made again within 6 months before expiry of 3 years or within 6 months of
commencement of activities, whichever is earlier.
Order granting registration in such cases shall be passed within 1 month from the end of the month
in which such application is filed.
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8. RENEWAL OF REGISTRATION.
NGO registered u/s 12AB or approved u/s 10(23C) or Section 80G shall file a fresh application within
6 months prior to the expiry of 5 years.
PCIT/CIT shall make enquiries to satisfy himself about the genuineness of activities and compliance
of other laws
If PCIT/CIT is satisfied, Approval shall be granted for 5 years.
If PCIT/CIT isn’t satisfied, he shall pass an order rejecting such application and also cancelling its
registration.
Order granting registration or rejection shall be passed within 6 months from the end of the month
in which such application is made.
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9. 2. INCOME TAX (6TH AMENDMENT
RULES, 2021)

10. SUMMARY OF RULES.
These rules shall come into force on the 1st day of April, 2021.
Notified new process and forms for registration and approval under section 10(23C), 35, 12A, 80G.
List of documents to be submitted along with the application
Procedure on receipt of registration application by PCIT/CIT
Forms for filing of statement of donations and issuance of certificate to donors.
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11. FORM FOR APPLYING FOR REGISTRATION.
FORM 10A
FORM 10AB
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12. 3. FORM 10A

13. WHO CAN APPLY IN FORM 10A.
For Already registered/approved Cases:
Application for revalidation of registration/approval for existing trust
registered/approved under Section 12A/12AA/10(23C)/80G.
For New Cases:
Application for provisional registrations/approval under section 12AB/ 10(23C)
/ 80G.
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14. TIMELINE TO APPLY IN FORM 10A.
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Category Timeline to apply
Trusts already approved/registered and their
approval/registration is continuing on 01-04-2021
On or before 30-06-2021
Trusts making application for provisional
registration/approval
1 month before the commencement of
the previous year relevant to the
assessment year from which the said
approval is sought.

15. TO WHOM AN APPLICATION TO BE MADE?
The application for the registration in Form 10A shall be made to the PCIT OR CIT authorized by the
CBDT.
The CBDT vide Notification No. 30 /2021/F. No. 370142/4/2021-TPL dated 01-04-2021 has authorized
Director of Income Tax (Centralized Processing Centre), Bengaluru and Commissioner of Income-Tax
(Exemption), Bengaluru, for the following purposes:
• For receiving applications for provisional registration or registration or provisional approval or
approval or intimation in Form 10A.
• For passing order granting provisional registration or registration in Form 10AC.
• For issuing URN to the applicants.
• For cancelling the approval granted in Form 10AC and URN.
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16. PROCEDURE ON RECEIPT OF FORM 10A
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On receipt of an application in Form No. 10A, the PCIT or CIT shall pass an order in
writing granting approval in Form No. 10AC and issue a 16 digit alphanumeric URN to
the applicants.
If, at any point of time, it is noticed that Form No. 10A has not been duly filled in by
not providing, fully or partly, or by providing false or incorrect information or
documents required to be provided under this rule, the PCIT or CIT, after giving an
opportunity of being heard, may cancel the approval granted in Form No. 10AC and
URN, and such approval in Form No.10AC or such URN shall be deemed to have never
been granted or issued.

17. 4. FORM 10AB

18. WHO CAN APPLY IN FORM 10AB.
Conversion of provisional registration into regular registration.
Renewal of registration/approval after five year
Activating inoperative registration due to approval under section 10(23C)/10(46)
Re-registration for modification of objects for entities registered under Section
12AB
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19. TIMELINE TO APPLY IN FORM 10AB.
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Category Timeline to Apply
Conversion of provisional registration into regular
registration
At least 6 months before the expiry of period of the
provisional registration or within 6 months of
commencement of its activities, whichever is earlier.
Renewal of registration/approval after five year At least 6 months prior to expiry of the said
registration period.
Activating inoperative registration due to approval
under section 10(23C)/10(46)
At least 6 months before the commencement of the
assessment year from which the said registration is
sought to be made operative.
Re-registration for modification of objects for
entities registered under Section 12AB
Within 30 days from the date of the said adoption or
modification.

20. PROCEDURE ON RECEIPT OF FORM 10AB
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Once an application in Form 10AB is submitted by the Trust or Institution, a notice is
issued by the concerned commissioner to furnish the
documents/clarifications/information to satisfy himself about the genuineness of
activities of the trust or institution and the compliance of such requirements of any
other law for the time being in force by the trust or institution as are material to achieve
its objects. The commissioner is under an obligation to follow the procedure prescribed
under section 12AB/10(23C)/80G before he grants or refuses registration or approval.
In case of an application made in Form No. 10AB, the order of registration or rejection
or cancellation of registration shall be in Form No. 10AD and in case if the registration is
granted, sixteen-digit alphanumeric number URN shall be issued by the PCIT or CIT.

21. 5. PRACTICAL ASPECTS OF FORM
10A/10AB

22. STEPS TO FILE FORM
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Step 1: Visit www.incometaxindiaefiling.gov.in
Step 2: Login using the User ID and password.
Step 3: Go to e-file>Income Tax Forms.
Step 4: Select ‘Form 10A’ from the dropdown menu of ‘Form Name’ and click ‘Continue’.
(Form 10AB is not available yet)

23. STEPS TO FILE FORM
23
Step 5: On the landing page, you will find 3 tabs.
A. Instructions: This tab has general instructions for the applicant to fill the details in Form
10A. It is advisable to read the instructions carefully before filling the form.
B. Form 10A: Fill the required information in Form 10A.
C. Verification: Fill the details in verification Tab
Step 6: Attach required documents
Step 7: The form has to be submitted with a digital signature, if the Income-tax return is
required to be furnished under digital signature or through EVC, in other cases.

24. SECTIONS IN FORM 10A
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Particulars Point Number Remarks
Incorporation/ Constitution detail 1 to 6
Other Registrations 7 to 8
Details of Key Persons 9
Assets and Liabilities 10 to 19 Not required to be filled in if
return for FY 19-20 has been
furnished (Inst. 10)
Revalidation cases
Religious Activities 21 To be filled in only in the case of
application for provisional approval
under section 80G

25. THINGS TO BE TAKEN CARE
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1. Section Code should be selected very carefully-
For Revalidation of 12AA Regn. – 01
For Revalidation of 80G Approval – 11
(Nature should not be religious )
2. One should be careful while selection Object of the Applicant
3. In Point 6 used the term ‘Trust’ but this field is mandatory even for Societies and
Companies.
4. Darpan Id : if receives government grant or intent to receive government grant

26. THINGS TO BE TAKEN CARE
26
5. FCRA Registration No. should be given wherever applicable
6. Registration under other provision of Income Tax includes : 10(23C), 10(46) etc.
7. As per Instruction No. 8 : column ‘Relation’ mention the status like settlor, trustee,
Director etc.
8. Unique Identification no. shall be PAN-01, Aadhar -02 or others
9. If one person holds more than one capacity than his/her name should be repeated .

27. ATTACHMENTS WITH FORM
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1. Self certified copy of the instrument under which the trust/institution was
created/established, if applicable
2. Self certified copy of the document evidencing the creation of the trust or the
establishment of the institution, if applicable
3. Self certified copy of registration with RoC/registrar of Firms & Societies/Registrar of
Public Trusts, whichever applicable
4. Self certified FCRA 2010, Registration copy, if applicable
5. Self certified copy of existing order granting registration u/s 12A or sec. 12AA, if any
6. Certified copy of the annual report of the trust/institution for a maximum three
immediately preceding financial years, if applicable
 No TAB for other documents to be uploaded
 No TAB for Activity Report to be uploaded

28. 6. FILING OF STATEMENT
OF DONATION
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29. OBLIGATION TO FILE STATEMENT OF DONATION.
Trust or institution approved under section 80G are now required to file statement of
donation received and also to issue the certificate to the donor.
Deduction on account of donation under section 80G shall be allowed to the donor
only on the basis of the statement filed by the donee trust.
If there is any mistake in the aforesaid statement or any addition, deletion or updation
is warranted in it, then the institution may also deliver to the said prescribed authority
a correction statement for rectification of the information furnished in the statement in
prescribed form and verified in prescribed manner.
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30. CONSEQUENCES OF NON-COMPLIANCE.
In case of delay in filing such statement a late fee of Rs. 200 per day shall be applicable under newly
inserted section 234G of the Income-tax Act.
Late Fee:
If the trust or institution fails to file such statement, a penalty under Section 271K shall be leviable which
shall not be less than Rs.10,000/- and which may extend up to Rs. 1 lakh.
Penalty:
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31. STATEMENT OF DONATION – FORM 10BD.
 For all donations received during a FY starting from FY 2021-22
 To be reported in Form No. 10BD
 In aggregate per person separately for each nature:
 Corpus
 Specific
 Others
 Unique Identification No.
 PAN
 Aadhaar
 Others
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32. STATEMENT OF DONATION – FORM 10BD.
 Proportionately: If combined cheque, no proportion is specified :
 Due Date: Latest by 31st May (immediately following the FY)
 Delay in Submission:
 Late Fee (u/s. 234G) Rs. 200/- Per day
 Penalty (u/s. 271K) Rs. 1,000/- to 1,00,000/-
 Correction Statement: Mistake can be rectified but process yet to be prescribed
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33. CERTIFICATE OF DONATION – FORM 10BE.
 Certificate to be issued in Form 10BE
 For Financial Year starting from FY 2021-22
 To be Issued Annually
 Due Date: Latest by 31st May (immediately following the FY)
 Rules shall be framed for generation & download of certificate from web portal itself
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34. 7. CONTROVERSIAL ISSUES

35. Issue 1
What shall be consequences of not making application for
revalidation by existing Trusts by 30.06.2021?
Will the registration lapse?
Will the exemption be available for the period 01-04-2021 to
30-06-2021?
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36. Issue 2
Can revalidation application for registration under section
12AB and approval under section 80G be made through one
form?
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37. Issue 3
Can the CIT cancel or reject the application for revalidation to
be filed by 30-06-2021?
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38. Issue 4
Can the CIT grant conditional registration in Form 10AC or
10AD as the case may be?
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39. Issue 5
Is it mandatory to submit audit report under section 44AB
for incidental business activity?
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40. Issue 6
What options shall be available to an organization
approved/registered both under section 10(23C) and 12AA?
Can NGO claim the benefit of exemption under section
10(23C) and section 11 & 12 together?
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41. Issue 7
What is the registration number and the registering authority
for a Trust?
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42. Issue 8
What should we write under point 6 of Form 10A regarding
whether Trust is irrevocable?
Is this point to be filled for society of company?
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43. Issue 9
What is the effective date of provisional registration?
Application for provisional registration is required to be made one month prior to the
end of the previous year to avail tax exemptions for the succeeding years.
 What is meaning of previous year?
 From which year the benefit of exemption shall be available?
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44. Issue 10
What is the status of applications pending on 01-04-2021?
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45. Issue 11
Can an organization be charitable cum religious?
Can these organizations apply for 80G approval?
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46. Issue 12
Medical and education institutions having annual receipts of
less than Rs. 5 crore and having 12AA registration, do these
organizations need to apply for revalidation by 30-06-2021?
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47. Query Session.
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