Form To re-register or re-approve your trust/institution under sections 10(23C), 12AB, or 80G, file Form 10AB with the Principal Commissioner/Commissioner of Income Tax.
Form No 10AC – Overview
CBDT clarifies rules for cancelling trust/institution registration in Circular No. 11/2022. This summary highlights key points. Know about Form 10AC processing.
Trusts and institutions seeking re-registration or re-approval under sections 10(23C), 12AB, or 80G must apply in Form 10AB to the Principal Commissioner or Commissioner of Income Tax. Upon receiving the application, they will issue an order in Form 10AC granting or denying the registration/approval and assign a Unique Registration Number (URN) if approved.
Registration Process Under 10AC
- Eligibility:
- Charitable or religious trusts and institutions seeking registration or approval under sections 12A, 12AA, 12AB or 80G of the Income Tax Act, 1961.
- Application:
- File Form 10AB online through the Income Tax e-filing portal (https://incometaxindiaefiling.gov.in/).
- Attach required documents (e.g., trust deed, registration certificate, list of trustees, etc.).
- Processing:
- The Principal Commissioner or Commissioner of Income Tax will examine the application and documents.
- They may request additional information or clarification.
- Order for Registration or Approval:
- If satisfied, the authority will issue 10AC, granting registration or approval.
- This form contains details of the trust/institution, registration/approval validity period, and applicable conditions.
Form 10AC Online Verification
- Visit the Income Tax Department’s website: https://incometaxindia.gov.in/
- Under ‘Quick Links,’ click ‘Verification of Trust Registration.’
- Enter the PAN of the trust/institution to view its registration status and Form 10AC details.
How to Download Form?
- Access the Income Tax Department’s Forms page
- Click the ‘Download’ link next to ‘Form 10AC.’
- Save the PDF form to your computer.
- Fill out the form offline and submit it physically to the designated tax authority, along with required documents.
What Are Form 10AC Benefits?
| Aspect | Form 10AC | Form 80G |
| Purpose | Registration or approval of an entity, potentially under sections 12A, 12AA, 12AB, and 80G. | Approval to issue tax-deductible donation receipts. |
| Scope | Encompasses various tax benefits under sections 12A, 12AA, 12AB, and 80G. | Specifically grants deduction to donors. |
| Timeline | Approval is typically valid for a period of years. | Validity varies depending on the entity’s nature and activities. |
Amended Provisions of 10AC vide Finance Act 2022
The Finance Act of 2022 introduced revised provisions to the Income-tax Act, empowering the Principal Commissioner or Commissioner of Income-tax to scrutinise potential ‘specified violations’ by registered or provisionally registered trusts or institutions. Subsequent to this examination, an order must be issued, either cancelling the registration or refusing to do so.
In light of the amendments introduced through the Finance Act of 2022, it is imperative to reassess the conditions under which registration or approval, as well as provisional registration or provisional approval, were initially granted to trusts and institutions. This reassessment aims to align these conditions with the modifications introduced by the Finance Act of 2022.
Consequently, the CBDT has recently provided clarification regarding Form, which pertains to the registration of trusts and institutions.
CBDT Clarification on Form 10AC
The Central Board of Direct Taxes (CBDT) has outlined specific conditions for the granting of registration under sections 12AB, 10(23C), and 80G. The revised conditions apply to trusts or institutions undergoing:
- Re-registration and provisional registration under section 12AB,
- Re-approval and provisional approval under section 10(23C), and
- Re-approval and provisional approval under section 80G.
For Form 10AC issued between April 1, 2021, and the date of the Circular issued on June 3, 2022, the conditions specified shall be construed as replaced with those provided by the board, effective from April 1, 2022.
Provisional Registration/Approval to be deemed as Registration/Approval
The CBDT has clarified that in cases where, due to technical glitches,10AC was issued during the fiscal year 2021-2022 with the heading ‘Order for provisional registration’ or ‘Order for provisional approval’ instead of ‘Order for registration’ or ‘Order for approval,’ all such Form No. 10AC instances will be treated as an ‘Order for registration or approval.’
Conclusion
In conclusion, the recent clarifications issued by the CBDT regarding Form 10AC underscore the importance of aligning with revised conditions for the grant of registration under sections 12AB, 10(23C), and 80G.
The clarification addresses instances where technical glitches may have led to the issuance of Form No. 10AC with provisional headings during the fiscal year 2021-2022. The CBDT’s directive ensures that such forms are recognized as orders for registration or approval. Organisations and institutions are advised to adhere to the updated conditions, fostering compliance with the amended provisions introduced by the Finance Act of 2022.
FAQs
What are the key details and information required when filling out Form No. 10AC?
Organization details: Name, address, PAN, registration details, objectives. Trust details (if applicable): Deed details, trustees' information. Activities and income: Details of charitable or religious activities, sources of income, expenditure details. Financial statements: Audited balance sheets and income & expenditure statements for the last 3 years. Supporting documents: Copies of trust deed, registration certificates, and other relevant documents.
How can an organization or trust apply for 80G approval using Form No. 10AC?
You can only apply for 80G approval if you're also eligible for registration under sections 12A, 12AA, or 12AB. Submit the completed Form No. 10AC electronically through the Income Tax e-filing portal. Attach all required supporting documents electronically.
Is there a specific timeline or deadline for submitting Form No. 10AC to claim tax exemption under Section 80G?
No, there's no specific deadline for filing Form No. 10AC. However, it's recommended to file before the end of the financial year to avoid delays in receiving approval. Donors can claim deductions under Section 80G for donations made to organizations approved during the financial year in which the donation was made.
What are the consequences if an organization fails to submit or comply with Form No. 10AC requirements?
Failure to submit or comply can lead to denial of 80G approval. Donors who make contributions to unapproved organizations may not be able to claim deductions. The organization may face penalties and other legal consequences for non-compliance.
Can amendments be made to the information provided in Form No. 10AC after submission?
Minor corrections or clarifications can be made through online rectification requests on the e-filing portal. For significant changes, you may need to submit a revised Form No. 10AC.
Are there any fees associated with the submission of Form No. 10AC for 80G approval?
No, there are no fees associated with submitting Form No. 10AC for 80G approval.
How long does it typically take to receive approval under Section 80G after submitting Form No. 10AC?
Processing time can vary depending on the workload of the Income Tax Department and the complexity of the application. It typically takes 3-6 months to receive approval, although it may take longer in some cases.
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