CBDT vide Notification No. 19/2021 (G.S.R. 212(E).) dated 26.03.2021 notified the new registration procedure for NGOs and Charitable Trusts and other institutions under section 12AB and section 10(23C) of the Income Tax Act, 1961 (“Act”) through Income-tax (6th Amendment) Rules, 2021. It further notifies the procedure for furnishing the statement of donation received by NGOs/Trusts under section 80G(5).
The new registration scheme for NGOs and Charitable Trusts was first introduced in the statute by the Finance Act, 2020 and was made effective from 1st June 2020. However, due to the COVID-19 pandemic outbreak and consequent nation-wide lockdown, the registration procedure under new section 12AB was postponed and deferred to 1st October 2020. This was announced by a Press Release by the government.
When the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 was passed in September 2020, the legislation has further deferred the operation of the new registration scheme under section 12AB to 1st April 2021. Both the renewal of registration u/s 12A or section 12AA, as well as renewal of approval under section 80G, is being deferred.
Under the new registration regime under section 12AB, the registration of the NGOs or Trusts will remain valid for a period of 5 years and shall be required to be renewed after every 5 years, unlike the present system of perpetual registration once granted.
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 rationalized the procedure relating to approval/ registration/ notification of certain entities referred to in sections 10(23C), 12AA, 35 and 80G of the Act effective from 1st April 2021.
Read more on:
New Registration Procedure under section 12AB Deferred and Extended to April 2021
Section 12AB: Amendments in Procedure for Registration of Charitable Trusts and NGOs
The new law has introduced the concept of a new procedure for the registration of all existing and new charitable trusts and institutions under section 12AB of the Act.
Furnishing statement of donations under section 80G postponed
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has amended section 80G to insert a new clause (viii) to sub-section (5) of section 80G to provide for furnishing a statement of donations received from the donees to the income-tax authority in the prescribed form and within the prescribed time limit. This amendment shall now take effect from 01-04-2021. Further, such trust or institutions has to furnish certificates to the donors in the prescribed manner w.e.f. 01-04-2021 as against 01-06-2020.
Read Also:
Key Highlights of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
Section 12AB: Amendments in Procedure for Registration of Charitable Trusts and NGOs
New Section 12AB to replace Section 12AA and Section 12A for Charitable Trust and NGO Budget 2020
An Insight into Amendments for Charitable Trusts –Budget 2020
In this context, CBDT has now notified the procedure for obtaining registration under section 12AB vide this Notification. The said notification prescribes the procedure of obtaining re-registration under section 12AB among many other Rules.
1. These amendments are made by Income-tax (6th Amendment) Rules, 2021 and shall come into force from 1st April, 2021. In other words, the new rules are applicable or come into operation from 1.4.2021.
2. Rule 2C is substituted to provide for online filing and approval u/s 10(23C).
3. Rule 5C is amended to substitute Form 3CF-I/II with a single Form No. 3CF to provide for online approval u/s 35(1)(ii)/(iii).
4. New Rule 5CA inserted to provide for intimation under 5th proviso to section 35(1) for approval u/s 35(1)(ii)/(iii).
5. Amendment in Rule 5F for approval under section 35(1)(iia) and substitution of Form 3CF-III with Form 3CF.
6. Rule 11AA is substituted to provide for online approval u/s 80G(5)(vi) to an institution or fund.
7. Rule 17A is substituted to provide for migration to the new registration scheme for an NGO or Trust u/s 12AB
8. New Rule 18AB is inserted to provide for online furnishing of statement of donations received u/s 80G or u/s 35
9. In the Appendices-
(i) New Form 3CF is notified to substitute existing Forms 3CF-I, 3CF-II and 3CF-III
(ii) New Form 10A is notified to substitute the existing Form No. 10A
(iii) New Form 10AB is notified
(iv) Form No. 10AC notified
(v) Form No. 10AD notified
(vi) Form No. 10BD notified
(vii) Form 10BE notified
(viii) Existing Form No. 56 omitted.
The salient features of Notification No. 19/2021 is described below-
Substitution of Rule 2C
Application for the purpose of grant of approval of a fund or trust or institution or university or any hospital or other medical institution under clause (i) or clause (ii) or clause (iii) or clause (iv) of first proviso to clause (23C) of Section 10.
1. New Rule 2C: Rule 2C of the Income Tax Rules, 1962 is substituted with new rules. Rule 2C deals with filing of an application for the purpose of grant of approval for the exemption u/s 10(23C) of a fund or trust or institution, or university or other educational institution or any hospital or other medical institution.
2. Form 10A/Form 10AB: An application under clause (i) or clause (ii) or clause (iii) or clause (iv) of the first proviso to section 10(23C) for the grant of approval of a fund or trust or institution, or university or other educational institution or any hospital or other medical institution shall be made in Form 10A or Form 10AB.
3. Documents to be furnished: The following documents are required to be submitted along with Form Nos. 10A or 10AB:
(a) where the applicant is created or established, under an instrument, self-certified copy of such instrument creating or establishing the applicant.
(b) where the applicant is created or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant.
(c) self-certified copy of the registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be.
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (FCRA), if any.
(e) self-certified copy of existing order granting approval under clause (23C) of section 10;
(f) self-certified copy of order of rejection of application for grant of approval under clause (23C) of section 10, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;
(h) where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(i) where the income of the applicant includes profits and gains of business as per the provisions of sub-section (4A) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(j) note on the activities of the applicant.
4. Online furnishing of Form 10A/Form 10AB: Form Nos. 10A/10AB is required to be furnished online electronically.
5. Verification of Form 10A/Form 10AB: Form No. 10A or 10AB shall be verified by the person who is authorised 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 10A/Form 10AB with DSC is compulsory else the forms can be furnished with EVC.
6. Allotment of 16-digit alphanumeric Unique Registration Number (URN): On receipt of an application in Form No. 10A, the Principal Commissioner or Commissioner shall pass an order in writing granting approval under section 10(23C) in Form No. 10AC and issue a sixteen-digit alphanumeric Unique Registration Number (URN) to the applicants.
7. 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
has not been duly filled in by not providing, fully or partly, or
by providing false or incorrect information or documents or
by not complying with the requirements of Rule 2C(3) or (4),
then the Principal Commissioner or Commissioner after giving an opportunity of being heard, may cancel the approval granted in Form No. 10AC and Unique Registration Number (URN) so issued and such approval in Form No.10AC or such Unique Registration Number (URN) shall be deemed to have never been granted or issued.
8. Provisional Approval in case of a new Institution: Where an application for approval is made by a new educational or a medical institution under clause (iv) of first proviso to clause (23C) of section 10 during previous year beginning on 1st day of April, 2021, the provisional approval shall be effective from the assessment year beginning on 1st day of April, 2022.
9. Approval in Form 10AD: Where an application is made in Form 10AB, the order of approval or rejection or cancellation shall be in Form 10AD and in case approval is granted, sixteen digit alphanumeric number Unique Registration Number (URN) shall be issued, by the Principal Commissioner or Commissioner.
Amendment in Rule 5C
Guidelines, form and manner in respect of approval under section 35(1)(ii)/(iii) for scientific research association or university etc.
1. Amendment in Rule 5C: Rule 5C of the Income Tax Rules, 1962 is amended which deals with filing of an application for the purpose of grant of approval for the exemption u/s 35(1)(ii)/(iii).
2. New Form 3CF: The amended Rule 5C has substituted Form No. 3CF-I and Form No. 3CF-II with a new Form 3CF for application for approval u/s 35(1)(ii)/(iii).
3. Online furnishing of Form 3CF: Form No 3CF is required to be furnished online electronically.
4. Verification of Form 3CF: Form 3CF shall be verified by the person who is authorised 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.
New Rule 5CA inserted
New Rule 5CA inserted for filing of application for intimation under 5th proviso to section 35(1)
1. Application for Intimation of approval under 5th Proviso to section 35(1): The application for intimation under the 5th proviso shall be made in Form 10A.
2. Documents to be furnished: The following documents are required to be submitted along with Form No. 10A:
(a) where the applicant is created or established under an instrument, self-certified copy of the instrument;
(b) where the applicant created or established otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts or other registration document, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (FCRA), if any;
(e) self-certified copy of existing Notification granting approval under section 35.
3. Online furnishing of Form 10A: Form Nos. 10A is required to be furnished online electronically.
4. Verification of Form 10A: Form No. 10A shall be verified by the person who is authorised 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 10A with DSC is compulsory else the forms can be furnished with EVC.
5. Allotment of 16-digit alphanumeric Unique Registration Number (URN): On receipt of an application in Form No. 10A, the Principal Commissioner or Commissioner shall issue a sixteen-digit alphanumeric Unique Registration Number (URN) to the applicants.
6. 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
has not been duly filled in by not providing, fully or partly, or
by providing false or incorrect information or documents or
by not complying with the requirements of Rule 5CA(3) or (4),
then the Principal Commissioner or Commissioner after giving an opportunity of being heard, may cancel the Unique Registration Number (URN) so issued and such Unique Registration Number (URN) shall be deemed to have never been issued.
Amendment in Rule 5F
Prescribed authority, guidelines, form, manner and conditions for approval under section 35(1)(iia) for a scientific research company.
1. Amendment in Rule 5F: Rule 5C of the Income Tax Rules, 1962 is amended which deals with filing of an application for the purpose of grant of approval for the exemption u/s 35(1)(iia).
2. New Form 3CF: The amended Rule 5C has substituted Form No. 3CF-III with a new Form 3CF for application for approval u/s 35(1)(iia).
3. Online furnishing of Form 3CF: Form No 3CF is required to be furnished online electronically.
4. Verification of Form 3CF: Form 3CF shall be verified by the person who is authorised 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.
Substitution of Rule 11AA
Requirement for approval of institution of fund under section 8G(5)(vi).
1. New substituted Rule 11AA: Rule 11AA of the Income Tax Rules, 1962 is substituted with new rules. Rule 11AA deals with requirements for approval of an institution or fund under section 80G.
2. Form 10A/Form 10AB: An application under clause (i) or clause (iv) of the first proviso to section 80G(5) for the grant of approval of a fund or institution shall be made in Form 10A. Where application is made under clause (i) or clause (iv) of the first proviso to section 80G(5), the application shall be made in Form 10AB.
Note: Errors in the Notification
In Para (6) of the Notification, in the heading of the Rule 11AA, the expression “institution or fund“ is mentioned as “institution of fund”. Similarly, in the prescribed Rule 11AA(1)(b), “clause (ii) or clause (iii)” is wrongly mentioned as “clause (ii) or clause (ii)”.
A corrigendum to this effect is expected from the CBDT.
3. Documents to be furnished: The following documents are required to be submitted along with Form Nos. 10A or 10AB:
(a) where the applicant is created, or established, under an instrument, self-certified copy of the instrument;
(b) where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act;
(e) self-certified copy of existing order granting registration under clause (vi) of sub- section (5) of section 80G;
(f) self-certified copy of order of rejection of application for grant of approval under clause (vi) of sub-section (5) of section 80G, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;
(h) note on the activities of the applicant.
4. Online furnishing of Form 10A/Form 10AB: Form Nos. 10A/10AB is required to be furnished online electronically.
5. Verification of Form 10A/Form 10AB: Form No. 10A or 10AB shall be verified by the person who is authorised 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 10A/Form 10AB with DSC is compulsory else the forms can be furnished with EVC.
6. Allotment of 16-digit alphanumeric Unique Registration Number (URN): On receipt of an application in Form No. 10A, the Principal Commissioner or Commissioner shall pass an order in writing granting approval under section 80G(5) in Form No. 10AC and issue a sixteen-digit alphanumeric Unique Registration Number (URN) to the applicants.
7. 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
has not been duly filled in by not providing, fully or partly, or
by providing false or incorrect information or documents or
by not complying with the requirements of Rule 11AA(3) or (4),
then the Principal Commissioner or Commissioner after giving an opportunity of being heard, may cancel the approval granted in Form No. 10AC and Unique Registration Number (URN) so issued and such approval in Form No.10AC or such Unique Registration Number (URN) shall be deemed to have never been granted or issued.
8. Provisional Approval in case of a new Institution or fund: Where an application for approval is made by a new institution or fund under clause (iv) of first proviso to section 80G(5), the provisional approval shall be effective from the date of order in Form 10AC.
9. Approval in Form 10AD: Where an application is made in Form 10AB, the order of approval or rejection or cancellation shall be in Form 10AD and in case approval is granted, sixteen digit alphanumeric number Unique Registration Number (URN) shall be issued, by the Principal Commissioner or Commissioner.
Substitution of Rule 17A
Application for registration of charitable or religious trusts,NGOs, etc.
1. New substituted Rule 17A: Rule 17A of the Income Tax Rules, 1962 is substituted with new rules. Rule 17A deals with application for registration of charitable or religious trusts, NGOs, etc. under sub- clause (i) or sub-clause(ii) or sub-clause(iii) or sub-clause(iv) or sub-clause(v) or sub-clause(vi) of clause (ac)of sub-section (1) of section 12A.
2. Form 10A/Form 10AB: An application under clause (i) or clause (vi) of section 12A(1)(ac) for the grant of approval of a fund or institution shall be made in Form 10A.
Where application is made under clause (ii)/(iii)(iv) or clause (v) of section 12A(1)(ac), the application shall be made in Form 10AB.
3. Documents to be furnished: The following documents are required to be submitted along with Form Nos. 10A or 10AB:
(a) where the applicant is created, or established, under an instrument, self-certified copy of such instrument creating or establishing the applicant;
(b) where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act;
(e) self-certified copy of existing order granting registration under section 12A or section 12AA or section 12AB, as the case may be;
(f) self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AA or section 12AB, as the case may be, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;
(h) where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(i) where the income of the applicant includes profits and gains of business as per the provisions of sub-section (4A) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(j) self-certified copy of the documents evidencing adoption or modification of the objects;
(k) note on the activities of the applicant.
4. Online furnishing of Form 10A/Form 10AB: Form Nos. 10A/10AB is required to be furnished online electronically.
5. Verification of Form 10A/Form 10AB: Form No. 10A or 10AB shall be verified by the person who is authorised 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 10A/Form 10AB with DSC is compulsory else the forms can be furnished with EVC.
6. Allotment of 16-digit alphanumeric Unique Registration Number (URN): On receipt of an application in Form No. 10A, the Principal Commissioner or Commissioner shall pass an order in writing granting registration under section 12AB(1)(a)/(c) in Form No. 10AC and issue a sixteen-digit alphanumeric Unique Registration Number (URN) to the applicants.
7. Cancellation of the registration granted in Form No. 10AC and Unique Registration Number(URN): 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 or
by not complying with the requirements of Rule 17A(3) or (4),
then the Principal Commissioner or Commissioner after giving an opportunity of being heard, may cancel the registration granted in Form No. 10AC and Unique Registration Number (URN) so issued and such registration or such Unique Registration Number (URN) shall be deemed to have never been granted or issued.
8. Provisional Registration in case of a new Trust: Where an application for approval is made by a new Trust under section 12A(1)(ac)(vi) during previous year beginning on 1st day of April, 2021, the provisional registration shall be effective from the assessment year beginning on 1st day of April, 2022.
9. Registration in Form 10AD: Where an application is made in Form 10AB, the order of registration or rejection or cancellation shall be in Form 10AD and in case registration is granted, sixteen digit alphanumeric number Unique Registration Number (URN) shall be issued, by the Principal Commissioner or Commissioner.
Insertion of New Rule 18AB
Furnishing of Statement of particulars and certificate under clause (viii) and clause (ix) of sub-section (5) of section 80G or under sub-section (1A) of section 35
Section 80G(5)(viii)/(ix) and section 35(1A) requires furnishing of statement of donation received and issue of donation certificates to the donors for claiming deduction from the gross total income. This notification has framed the rules for furnishing such statements and certificates of donation to donors.
For this purpose, Rule 18AB is inserted.
1. Online filing of statements: Such statements are required to be filed electronically from the financial year 2021-22.
2. Form 10BD for furnishing statements: Statement of particulars required to be furnished by any research association, university, college or other institution or company or fund (“reporting person”) under clause (viii) of sub-section (5) of section 80G or under clause (i) to sub-section (1A) of section 35 shall be furnished in respect of each financial year, beginning with the financial year 2021-2022, in Form No. 10BD and shall be verified in the manner indicated therein.
3. Reporting of aggregate amount of donation for each person: The reporting person shall report the aggregate amount of donation received from each person in the financial year for which the statement is furnished.
4. Reporting of donation received from more than one person: Where donation is received from more than one person, the proportionate amount of each person shall be reported. Where no proportion is specified by the donors, the same shall be proportioned equally.
5. Online furnishing of Form 10BD: The statement of donation in Form 10BD is required to be furnished online electronically.
6. Verification of Form 10BD: Form No. 10BD shall be verified by the person who is authorised 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 10BD with DSC is compulsory else the forms can be furnished with EVC.
7. Issue of Certificate to donors: The reporting person is required to furnish a certificate of donation (as referred to in clause (ix) of sub-section (5) of section 80G or in clause (ii) to sub-section (1A) to section 35), to the donor in Form No. 10 BE specifying the amount of donation received during financial year from such donor, beginning with the financial year 2021-2022.
The certificate of donation in Form 10BE is required to be generated and downloaded from the income tax portal to be implemented by the Pr. DGIT/DGIT (Systems).
8. Due Date for issuing Donation Certificate in Form 10BE: The certificate of donation is required to be furnished to the donor on or before the 31st May, immediately following the financial year in which the donation is received.
9. Annual filing of statement of donations received in Form 10BD: The statement of donations received in a financial year shall be required to be furnished by 31st May, immediately following the financial year in which the donation is received.
Also Read:
How to file Statement of Donation in Form No. 10BD
How to issue Certificate of Donation in Form 10BE
How to File Form 10A for Approval under Section 80G
Update:
CBDT Notifies Jurisdiction for Online Registration and Cancellation under section 12AB and Others
Read the full text of Notification No. 19/2021 dated 26.03.2021 on Registration Procedure u/s 12AB
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 26th March, 2021
INCOME-TAX
G.S.R. 212(E).—In exercise of the powers conferred by clauses (i), (ii), (iii) and (iv) of first proviso to clause (23C) of section 10, ninth proviso to clause (23C) of section 10, sub-clauses (i) (ii), (iii), (iv), (v) and (vi) of clause (ac) of sub-section (1) of section 12A, sub-section (3) of section 12AB, first and fifth proviso to sub-section (1) of section 35, sub-section (1A) of section 35 , clauses (i), (ii), (iii) and (iv) of first proviso to sub-section (5) of section 80G, third proviso to sub-section (5) of section 80G and clauses (viii) and (ix) of sub-section (5) of section 80G, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.- (1) These rules may be called the Income-tax (6th Amendment) Rules, 2021
(2) They shall come into force on the 1st day of April, 2021.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), for rule 2C, the following rule shall be substituted, namely: -
“2C. Application for the purpose of grant of approval of a fund or trust or institution or university or any hospital or other medical institution under clause (i) or clause (ii) or clause (iii) or clause (iv) of first proviso to clause (23C) of Section 10. (1)An application under clause (i) or clause (ii) or clause (iii) or clause (iv) of first proviso to clause (23C) of section 10 for the grant of approval of a fund or trust or institution, or university or other educational institution or any hospital or other medical institution (hereinafter referred to as 'the applicant') shall be made in the following Form, namely:-
(i) Form No. 10A in case of application under clause (i) or clause (iv) of first proviso to clause (23C) of section 10 to the Principal Commissioner or Commissioner authorised by the Board; or
(ii) Form No. 10AB in case of application under clause (ii) or clause (iii) of first proviso to clause (23C) of section 10 to the Principal Commissioner or Commissioner under the said proviso.
(2) The application under sub-rule (1) shall be accompanied by the following documents, as required by Form Nos. 10A or 10AB, as the case may be, namely: —
(a) where the applicant is created or established, under an instrument, self-certified copy of such instrument creating or establishing the applicant;
(b) where the applicant is created or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (42 of 2010), if the applicant is registered under such Act;
(e) self-certified copy of existing order granting approval under clause (23C) of section 10;
(f) self-certified copy of order of rejection of application for grant of approval under clause (23C) of section 10, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;
(h) where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(i) where the income of the applicant includes profits and gains of business as per the provisions of sub-section (4A) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(j) note on the activities of the applicant.
(3) Form Nos. 10A or 10AB, as the case may be, shall be furnished electronically, —
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (i).
(4) Form Nos. 10A or 10AB, as the case may be, shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the applicant.
(5) On receipt of an application in Form No. 10A, the Principal Commissioner or Commissioner, authorised by the Board shall pass an order in writing granting approval under clause (i) or (iii) of the second proviso read with the ninth proviso to clause (23C) of section 10 in Form No. 10AC and issue a sixteen digit alphanumeric Unique Registration Number (URN) to the applicants making application as per clause (i) of the sub-rule (1).
(6) 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 sub-rules (1) or (2) or by not complying with the requirements of sub- rules (3) or (4), the Principal Commissioner or Commissioner, as referred to in sub-rule (5), after giving an opportunity of being heard, may cancel the approval granted in Form No. 10AC and Unique Registration Number(URN) issued under sub-rule (5), and such approval in Form No.10AC or such Unique Registration Number (URN) shall be deemed to have never been granted or issued.
(7) In case of an application made under clause (iv) of first proviso to clause (23C) of section 10 during previous year beginning on 1st day of April, 2021, the provisional approval shall be effective from the assessment year beginning on 1st day of April, 2022.
(8) In case of an application made in Form 10AB under clause (ii) of the sub-rule (1), the order of approval or rejection or cancellation under second proviso read with the ninth proviso to clause (23C) of section 10 shall be in form 10AD and in case if the approval is granted, sixteen digit alphanumeric number Unique Registration Number (URN) shall be issued, by the Principal Commissioner or Commissioner referred to in second proviso to clause (23C) of section 10.
(9) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall:
(i) lay down the form, data structure, standards and procedure of:
(a) furnishing and verification of Form Nos. 10A or 10AB, as the case may be;
(b) passing the order under second proviso to clause (23C) of section 10.
(ii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the form so furnished or the order so passed.”.
(3) In the principal rules, in rule 5C,-
(a) In sub-rule (1),−
(A) in clause (i), for the words, figures and letters “duplicate in Form No. 3CF-I”, the words, figure and letters “Form No. 3CF” shall be substituted;
(B) in clause (ii), for the words, figures and letters “duplicate in Form No. 3CF-II”, the words, figure and letters “Form No. 3CF” shall be substituted;
(b) after sub-rule (1), the following sub-rules shall be inserted, namely:-
“(1A) Form No. 3CF shall be furnished electronically, —
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (i).
(1B) Form No. 3CF shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the applicant.
(1C) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall:
(i) lay down the form, data structure, standards and procedure of furnishing and verification of Form No. 3CF;
(ii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said application made.”;
(c) In sub-rule (2), for the figures and letters “3CF-I”, the figure and letters “3CF” shall be substituted;
(d) In sub-rule (3), for the figures, letters and words “3CF-I or, as the case may be, Form No. 3CF- II”, the figure and letters “3CF” shall be substituted;
(e) In sub-rule (5), for the figures, letters and words “3CF-I or Form No. 3CF-II”, the figure and letters “3CF” shall be substituted.
(4) In the principal rules, after rule 5C, the following rule shall be inserted, namely: -
“5CA Intimation under Fifth Proviso to sub-section (1) of section 35. (1). An intimation under fifth proviso to sub-section (1) of section 35 by a research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) of said sub-section (hereinafter referred to as 'the applicant') shall be made in Form No.10A to the Principal Commissioner of Commissioner authorised by the Board.
(2) The application under sub-rule (1) shall be accompanied by the following documents, as required by Form No.10A, namely:—
(a) where the applicant is created or established under an instrument, self-certified copy of the instrument;
(b) where the applicant created or established otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts or other registration document, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (42 of 2010), if the applicant is registered under such Act;
(e) self-certified copy of existing Notification granting approval under section 35.
(3) Form No. 10A shall be furnished electronically, —
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (i).
(4) Form No. 10A shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the applicant.
(5) On receipt of an application in Form No. 10A, the Principal Commissioner or Commissioner, authorised by the Board shall issue a sixteen digit alphanumeric Unique Registration Number (URN) to the applicants making application as per sub-rule (1).
(6) 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 sub-rules (1) or (2) or by not complying with the requirements of sub- rules (3) or (4), the Principal Commissioner or Commissioner, after giving an opportunity of being heard, may cancel the Unique Registration Number (URN) issued under sub-rule (5)and such Unique Registration Number (URN) shall be deemed to have never been issued.
(7) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall:
(i) lay down the data structure, standards and procedure of furnishing and verification of Form No. 10A; and
(ii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said form so furnished.”.
(5) In the principal rules, in rule 5F, in sub-rule (2),-
(i) in clause (a), for the words, figures and letters “duplicate in Form No. 3CF-III”, the words, figure and letters “Form No. 3CF” shall be substituted;
(ii) after clause (a) the following clauses shall be inserted, namely:-
“(aa) Form No. 3CF shall be furnished electronically, —
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (I).
(ab) Form No. 3CF shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the applicant.
(ac) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall:
(i) lay down the form, data structure, standards and procedure of furnishing and verification of Form No.3CF;
(ii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said application made.”.
(iii) in clause (b) for the figures and letters “3CF-III”, the figure and letters “3CF” shall be substituted;
(iv) in clause (d), for the figures and letters “3CF-III” the figure and letters “3CF” shall be substituted.
(6) In the principal rules , for rule 11AA, the following rule shall be substituted, namely: -
“11AA . Requirement for approval of institution of fund under clause (vi) of sub-section (5) of section 80G. (1) An application for approval under clause (vi) of sub-section (5) of section 80G, the institution or fund (hereinafter referred to as 'the applicant') shall be made in the following Form, namely:-
(a) Form No. 10A in case of application under clause (i) or clause (iv) of first proviso to sub- section (5) of section 80G to the Principal Commissioner or Commissioner authorised by the Board; or
(b) Form No. 10AB in case of application under clause (ii) or clause (ii) of first proviso to sub- section (5) of section 80G to the Principal Commissioner or Commissioner authorised under the said proviso.
(2) The application under sub-rule (1) shall be accompanied by the following documents, as required by Form Nos. 10A or 10AB, as the case may be, namely:—
(a) where the applicant is created, or established, under an instrument, self-certified copy of the instrument;
(b) where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act;
(e) self-certified copy of existing order granting registration under clause (vi) of sub- section (5) of section 80G;
(f) self-certified copy of order of rejection of application for grant of approval under clause (vi) of sub-section (5) of section 80G, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;
(h) note on the activities of the applicant
(3) Form Nos. 10A or 10AB, as the case may be, shall be furnished electronically, —
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (i).
(4) Form Nos. 10A or 10AB, as the case may be, shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the applicant.
(5) On receipt of an application in Form No.10A, the Principal Commissioner or Commissioner, authorised by the Board shall pass an order in writing granting approval under clause (i) or (iii) of the second proviso read with third proviso of sub-section (5) of section 80G in form 10AC and issue a sixteen digit alphanumeric Unique Registration Number (URN) to the applicants making application as per clause (a) of the sub-rule (1).
(6) If, at any point of time, it is noticed that form 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 sub-rule (1) or (2) or by not complying with the requirements of sub- rule (3) or (4), the Principal Commissioner or Commissioner, as referred to in sub-rule (5), after giving an opportunity of being heard, may cancel the approval granted in Form No. 10AC and Unique Registration Number (URN), issued under sub-rule (5),and such approval or such Unique Registration Number (URN) shall be deemed to have never been granted or issued.
(7) In case of an application made under clause (iv) of first proviso to sub-section(5) of section 80G, the provisional approval shall be effective from date of order, as referred to in sub- rule (5).
(8) In case of an application made in Form No. 10AB under clause (ii) of the sub-rule (1), the order of approval or rejection or cancellation under second proviso to sub-section (5) of section 80G shall be in Form No. 10AD and in case if the approval is granted, sixteen digit alphanumeric number Unique Registration Number (URN) shall be issued, by the Principal Commissioner or Commissioner referred to in second proviso to sub-section (5) of section 80G.
(9) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall:
(i) lay down the data structure, standards and procedure of ,-
(a) furnishing and verification of Form Nos. 10A or 10AB, as the case may be;
(b) passing the order under second proviso to sub-section (5) of section 80G.
(ii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said application made or order so passed as the case may be.”.
(7) In the principal rules, for rule 17A, the following rule shall be substituted, namely:-
“17A Application for registration of charitable or religious trusts etc. (1). An application under sub- clause (i) or sub-clause(ii) or sub-clause(iii) or sub-clause(iv) or sub-clause(v) or sub-clause(vi) of clause (ac)of sub-section (1) of section 12A for registration of a charitable or religious trust or institution (hereinafter referred to as 'the applicant') shall be made in the following Form, namely:-
(i) 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 authorised 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.
(2) The application under sub-rule (1) shall be accompanied by the following documents, as required by Form Nos.10A or 10AB, as the case may be, namely:—
(a) where the applicant is created, or established, under an instrument, self-certified copy of such instrument creating or establishing the applicant;
(b) where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act;
(e) self-certified copy of existing order granting registration under section 12A or section 12AA or section 12AB, as the case may be;
(f) self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AA or section 12AB, as the case may be, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;
(h) where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(i) where the income of the applicant includes profits and gains of business as per the provisions of sub-section (4A) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period;
(j) self-certified copy of the documents evidencing adoption or modification of the objects;
(k) note on the activities of the applicant.
(3) Form Nos. 10A or 10AB, as the case may be, shall be furnished electronically, —
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (i).
(4) Form Nos. 10A or 10AB, as the case may be, shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the applicant.
(5) On receipt of an application in Form No. 10A, the Principal Commissioner or Commissioner, authorised by the Board shall pass an order in writing granting registration under clause (a), or clause (c), of sub-section (1) of section 12AB read with sub-section (3) of the said section in Form No.10AC and issue a sixteen digit alphanumeric Unique Registration Number (URN) to the applicants making application as per clause (i) of the sub-rule (1).
(6) 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 sub-rules (1) or (2) or by not complying with the requirements of sub-rules (3) or (4), the Principal Commissioner or Commissioner, as referred to in sub-rule (5), after giving an opportunity of being heard, may cancel the registration in Form No. 10AC and Unique Registration Number (URN), issued under sub-rule (5), and such registration or such Unique Registration Number (URN) shall be deemed to have never been granted or issued.
(7) In case of an application made under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A during previous year beginning on 1st day of April, 2021, the provisional registration shall be effective from the assessment year beginning on 1st day of April, 2022.
(8) In case of an application made in Form No. 10AB under clause (ii) of the sub-rule (1), the order of registration or rejection or cancellation of registration under sub-clause (ii) of clause (b) of sub- section (1) of section 12AB shall be in Form No.10AD and in case if the registration is granted, sixteen digit alphanumeric number Unique Registration Number (URN)shall be issued by the Principal Commissioner or Commissioner referred to in of sub-section (1) of section 12AB.
(9) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall:
(i) lay down the form, data structure, standards and procedure of ,-
(a) furnishing and verification of Form Nos. 10A or 10AB ,as the case may be;
(b) passing the order under clause (a), sub-clause (ii) of clause (b) and clause (c) of sub-section (1) of section 12AB.
(ii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said application made or order so passed as the case may be.”.
(8) In the principal rules, after rule 18AAAAA, the following rule shall be inserted, namely: -
“18AB. Furnishing of Statement of particulars and certificate under clause (viii) and clause (ix) of sub-section (5) of section 80G or under sub-section (1A) of section 35. (1) For the purpose of clause (viii) of sub-section (5) of section 80G and clause (i) to sub-section (1A) of section 35, the prescribed authority shall be the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) as the case may be.
(2) Statement of particulars required to be furnished by any research association, university, college or other institution or company or fund (hereinafter referred to as reporting person) under clause (viii) of sub-section (5) of section 80G or under clause (i) to sub-section (1A) of section 35 shall be furnished in respect of each financial year, beginning with the financial year 2021-2022, in Form No. 10BD and shall be verified in the manner indicated therein.
(3) The reporting person, referred to in sub-rule (2), shall, while aggregating the amounts for determining the sums received for reporting in respect of any person, —
(i) take into account all the donations of the same nature paid by that person during the financial year; and
(ii) proportionately attribute the value of the donation or the aggregated value of all the donations to all the persons, in a case where the donation is recorded in the name of more than one person and where no proportion is specified by the donors, attribute equally to all the donors.
(4) Form No. 10BD, shall be furnished electronically,—
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (i).
(5) Form No. 10BD shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee.
(6) The reporting person shall furnish the certificate as referred to in clause (ix) of sub-section (5) of section 80G or in clause (ii) to sub-section (1A) to section 35, to the donor in Form No. 10 BE specifying the amount of donation received during financial year from such donor, beginning with the financial year 2021-2022.
(7) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall -
(i) lay down the, ,-
(a) data structure, standards and procedure of furnishing and verification of Form No. 10BD, single or multiple;
(b) the procedure to submit correction statement for rectification of any mistake or to add, delete or update the information furnished in Form No. 10BD; and
(c) the procedure, formats and standards for the purposes of generation and download of certificates in Form No. 10BE
(ii) be responsible for,-
(a) formulating and implementing appropriate security, archival and retrieval policies in relation to the Form No.10BD so furnished; and
(b) the day-to-day administration in relation to the generation and download of certificates in Form No. 10BE, from the web portal specified by him or the person authorised by him.
(8) The certificate referred to in sub-rule (6) is required to be furnished to the donor on or before the 31stMay, immediately following the financial year in which the donation is received.
(9) Form No. 10BD referred to in sub-rule (1) shall be furnished on or before the 31stMay, immediately following the financial year in which the donation is received.”.
(9) In the principal rules in the APPENDIX II, -
(i) For Form Nos. 3CF-I, 3CF-II and 3CF-III, the following Form shall be substituted, namely: -
Download Notification No. 19/2021 dated 26.03.2021 on Registration Procedure u/s 12AB in pdf format
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