As many of you are aware that Income Tax Dept in March 2020 Budget had made it mandatory for all NGOs to renew their 12A, 80G and other certificates, however due to Covid many of these changes were not implemented. Now the Dept has brought out necessary Forms & clarity on how these are to be implemented.
RENEWALS / FRESH REGISTRATION
- Income Tax Dept. has now come out with different FORMS, that it requires charitable entities to file for various registrations, certificates etc.
- Entities already registered under S.10(23C), S.80G, S.12A, but need to renew their registration: Use Form 10A for application.
- Entities not registered so far under S.10(23C), S.80G, S.12A, though have applied for registration using old Forms. If the application is pending as at 1-4-2021, will be treated as eligible for Provisional and will be issued provisional registration for 3 years, within one month of application/1-4-2021, whichever is later.
- In future all new entities will need to file new Form (Form 10AB). Also entities with provisional certificates would need to apply six months before expiry of their certificate.
- For getting relief under S.35 (Form 3CF)
- Applications for renewal have to be filed within 3 months of 1-4-2021, i.e. by 30th June 2021. Approving authority has to issue the Order within next 3 months. In case approved, all certificates will be valid for 5 years, except Provisional certificate as explained above.
Certificate / Statement by NGO for S.80G Donations
- All charitable entities now need to furnish a Statement of donation in the Form 10BD, electronically for donations under S.80G /S.35. This statement is to be prepared for all those donors who are eligible to claim this tax relief. The Statement would need to be filed before 31st May following the year-end by the NGO.
- NGO would need to issue certificate (Form 10BE) to donor for the financial year. This has to be issued by 31st May 2021.
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Socio Research & Reform Foundation (NPO)
512 A, Deepshikha, 8 Rajendra Place,New Delhi – 110008
Uptill now my client was regd under 12AA. I was not able to renew its 80G (last renewed was in 2009). Its an educational institution having collection of fees at Rs 50 lakhs for last few years.
My question is
under new re registration process , Can i register my client under 10(23)(C)(iiiad) along with 80G instead of 12AA and 80G. OR Whether i have to re register under 12AA along with 80 G and also register under 10(23)(C)(iiiad) and 80G.
As stated in the note above, one has to renew all registrations (i.e. S.10(23C), S. 12AA & S.80G). However effective new changes, you have to select one registration, i.e. either S.10(23C)(iiiad) or S.12AA or S.12AB for future purposes. You can not keep both. So, if you decide to take benefit of S.12AA under S.11, then S.10(23C) will no longer will be valid, and similarly vice versa.
S.80G in any case is for giving exemption to your donors and would need to be renewed, in either case.
Please note under S.10(23C)(iiiad) limit is upto Rs 1 crore. In case the income increases, then benefit will not be available for the excess amount, while you can continue to benefit under S.11 without limit, as long as you comply with the restrictions as imposed under S.11.
Dear Sir,
As per form 10A Serial no. 2 under section code, renewal of 12 A comes under which Sub clause i or vi , in case of 80G renewal Sub clause i or iv comes under which Sub clause.
kindly suggest which one to select.
Regards
Bhawani Prasad Nayak
Good evening can you share these new forms.
Please find link of the forms:
Form-10A.pdf
Form-3AB.pdf
Form-10BE.pdf
Form-10BD.pdf
Form-3CF.pdf