REGISTRATION OF TRUST
Table of Contents
Introduction
Registration of Trust and its applicability
Brief note on 12A, 12AA,12AB
What is Form 10A
What is Form 10AB
List of documents for submission
Key points
Conclusion
Reference
Introduction
Trust formed for charitable or religious purposes which are not intended to do
commercial activities are allowed various benefits under the Income-Tax Act,
exemption under various sections.
The Government of India has made an amendment in the Income Tax Act in
2015 and cleared the „ charitable‟ purpose. In the amendment the expression
“charitable purpose” has been defined under section 2(15) of the act to
(a) Relief of the poor
(b) Education
(c) Medical Relief
(d) Preservation of environment
Registration of Trust
To register a trust, an application for Trust registration must
be made to the official having jurisdiction in the state for
Trust registration.
A trust can be registered under Indian Trust Act, 1882 and a
society can be formed under the provisions of Societies
Registration Act, 1850.
At least two trustees are required to register a public
charitable trust. However, a minimum of seven members
are required for formation of a society.
.
There is no requirement for annual filing in case of Trusts.
In addition, Section 12A/12AA/12AB extends benefits in
terms of tax exemption.
Documents required
Covering letter for Trust registration to the Official having Jurisdiction
Certified copy of Trust deed
Consent letter of Trustees
Details of Trustees
(i) PAN
(ii) Aadhar Card
(iii) Address of the trustees
(iv) Objective of the trustees.
Section 12A /12AA of Income
Trust, Society and Section 8 Company can seek registration Under Section
12A of Income Tax Act to claim exemption under Income Tax Act‟ 1961. Section
12A deals with registration of trust and Section 12AA also deals with online
procedure for registration of trust.
The registration which is granted under Section 12A shall be treated as a one-
time registration. Once the registration is made, the registration will be active
until the date of cancellation.
Also, it may be noted that 12A Registration is not applicable for Private or
Family Trusts.
The activities of the assesse should be genuinely for the benefit of the public.
Documents required
Trust / Society registration certificates / registration documents
Self-certified copy of instrument for the establishment of trust
Copy of PAN card of the trustees
Copy of Aadhaar Card of the trustees
Digital signature of one of the trustees
Address of the Trustees
Self-certified copy of document for registration and submitted to Registrar of
firms or Registrar of Public trusts.
Note on the activities conducted by the entity
The assesse may have previously applied for registration under this section.
The application may have been rejected. In such cases, a self-certified copy of
the order of rejection should be attached with the application.
Section 12AB
All the registration made under section 12A and 12 AA are
required to renewed as specified under new scheme of
registration.
The Finance Act 2020 prescribes that all pending
applications or fresh applications for registration shall be
considered as applications under new section 12AB.
This new section has imposed from 1st October 2020.
Earlier, trusts or institutions were registered under section
12A or 12AA .
The Documents required is as same as mentioned for 12A
and 12AA.
Form 10A and 10 AB
Two separate forms have been prescribed for a trust, institution,
or NGO as per the new rules:
(i) Form No. 10A: For provisional registration.
(ii) Form No. 10AB: For conversion from provisional
registration to permanent registration.
What is Form 10A?
(i) The new Form No. 10A is used only once in the lifetime of
the trust, institution, or NGO for registration or approval for the
first time.
(ii) If any new trust seeks registration from the financial year
2022-23, then it should apply one month prior to the
commencement of the financial year 2022-23. In this case, it
should apply for provisional registration before March 1, 2022
by submitting Form No. 10A.
Documents required
Trust deed (two copies)
Trust/Society Registration certificate
Permanent Account Number (PAN) of trust/trustees
Aadhaar cards of the managing trustees
Bank Statements
Digital signatures of one of the trustees(Author)
Existing 12A, 12AA, 12AB and 80G certificates
Annual accounts since the year of incorporation or for the immediately
preceding three financial years (balance sheet, income and
expenditure, receipts and payments accounts, and all relevant
schedules)
Form 10AB
Trusts or institutions who have received the provisional
registration must apply for a permanent registration by
submitting Form No. 10AB, at least six months before the
expiry of provisional registration or six months within the
commencement of charitable activities, whichever is earlier.
The registration will be granted for a period of five years.
If any new trusts seeks fresh registration, the application for
provisional registration under Section 12AB has to be filed
one month before the commencement of the previous year
in which the charitable activities have to be started.
Key points
After this registration, the AO will review and issue the certificate
of registration in the Form 10AC within 30 days from the date of
registration.
Application having errors will be cancelled and Form 10AD shall
be issued for order of rejection or cancellation.
After receiving the revalidation application under 10A, PCIT or
CIT will pass an order of granting approval in writing in Form
No.10AC and issue a 16 digit Unique Registration Number
(URN) to the applicants.
.
Category Forms Timeline to make application
Trusts already approved/registered and 10A On or before 31-03-2022
their approval/registration is continuing an
on 01-04-2021.
Trusts making application for provisional 10A 1 month before the
registration/approval commencement
Conversion of provisional registration into 10AB At least 6 months before the
regular registration expiry or within 6 mnth of
commencement of its activities,
whichever is earlier
Renewal of registration/approval after five 10AB At least 6 months prior to expiry
year said registration period. of the said registration period
Conclusion
The above slides have explained the procedures,
applicability and documents required for filing form 10A and
10AB.
Further, you can use the links given in the following
slide for your reference.
Reference
https://cleartax.in/s/form-10ab
https://cleartax.in/s/form-10a-trust-re-registration-process
https://incometaxindia.gov.in
https://www.indiafilings.com/learn/income-tax-charitable-trust/
https://taxguru.in/income-tax/form-10a-351.html
https://taxguru.in/income-tax/registration-trust-societies-form-
10a.html
.
