SECTION 12AB OF INCOME TAX ACT

     RE-REGISTERATION FOR EXEMPTION OF SECTION 12AA & 12A UNDER SECTION 12AB OF INCOME TAX ACT

New Section 12AB to replace Section 12AA and Section 12A for Charitable Trust and NGO Budget 2020. 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.

Form 12AB is a amendments in Procedure for Registration of Charitable Trusts and NGO’s. It is a amended form of 12A & 12AA. This amendment will take effect from 1st June, 2020.

This form is related with the Trust & NGO’s. When trust is registered under 12AB then with the respect to provisions related to Trust and NGO’s claiming exemption u/s 11 or u/s 12 of the Income Tax Act, 1961.

The registration once granted shall be valid for 5 Years after that trust will renew the registration.

A trust is required to apply for registration in Form No. 10A.

Procedure of fresh registration for a newly established trust

Documents required to be furnished along with application form:The documents which are required to be furnished along with application Form No. 10A are as follows:

• Registration Certificate and MOA / Trust Deed (two copies- self attested by the Managing Trustee)
• NOC from the Landlord where registered office is situated (if place is rented)
• Copy of PAN card of Trust.
• Electricity Bill/ House Tax/ Water Bill.
• Evidence of welfare activities carried out and progress report of the same since 3 years or since inception.
• Books of Accounts, Balance Sheet, ITR (if any) since inception or last 3 years.
• List of Donors with their PAN and address.
• List of Governing body or members of the trust/ Institution in the following format

• Trust Deed for verification of Original Registration Certificate and MOA.
• Any other information / document as may be asked by the Income Tax Department.

          Conclusion:

• From 1^stOctober 2020, the new provisions will come into effect, as a result of which every trust or Institution which are already in existence will have to mandatorily renew the certificate granted under section 12A, 12AA, 80G within the time limit prescribed which is latest by 31^stDecember 2020.
• In case of new Trusts or Institutions they will have to apply for registration under section 12AB within the time limit prescribed.