Income-tax compliance dates extended

Vide Circular No. 6 of 2023, dated 24^th May 2023 CBDT has provided relief to charitable trusts and institutions with regard certain compliance related due dates.

Form 10BD

Every charitable trust or institution that has tax deduction certificate (80G) is required to submit particulars of donation in each financial year in Income tax online Form 10BD within two months of the close of the financial year (i.e. by 31^st May)

However, the deadline for submitting Form 10BD for the Financial Year 2022-23 has been extended to 30^th June 2023.

Form 10A/10AB 

The due date for application in Form No. 10A by existing charitable trusts and institutions for registration or approval (Re-validation) under sections 10(23C), 12AB and 80G of the Income tax Act was earlier extended till 25^th November 2022.

The due date for application in Form 10AB by provisionally registered charitable trusts and institutions for regular registration/approval (for five years) was earlier extended till 30^th September 2022.   

Charitable trusts and institutions that had failed to apply for registration in Form 10A / 10AB within the specified due date were subject to provisions of section 115TD from Assessment Year 2023-24 (i.e., F.Y. 2022-23) onward, which meant applicability of tax on accreted income.

Accreted income is Fair Market Value of assets and liabilities of the trust or institution as on the specified date.

Relief: The due date for filing Form 10A and 10AB has been extended till 30^th September 2023.

CBDT has also clarified:

1. The extension shall also apply in case of all pending applications which have already been filed but were so filed after the due date i.e., 25^th November 2022 or 30^th September 2022 as the case may be;
2. Where applications in Form 10AB were rejected on account of filing of such applications after the due date, the charitable institutions may furnish a fresh application within the extended due date of 30^th September 2023;
3. The existing trusts which did not make an application for registration/approval (valid for 5 years) in Form no. 10A by 25^th November2022 and subsequently opted for provisional registration/approval (valid for 3 years) in Form 10AB, then the relevant functionality on e-filing portal may be used to surrender Form No. 10AB seeking provisional registration/approval and instead make a new application in Form No.10A for registration/ approval by 30^th September 2023.

Form 9A/10

Finance Act, 2023 amended section 10(23C) and 11 to provide that Form No. 9A (deemed application) and Form No. 10 (secondary accumulation for five years) should be furnished at least two months prior to the due date of furnishing return of income (i.e. by 31^st August).

The Circular has clarified that deemed application/secondary accumulation will be allowed as long as Form No. 9A and 10 are furnished on or before the due date of filing return of income (i.e. 31^st October 2023).