Re-approval of existing tax exemption registration and tax deduction certificate from 1st April 2021

Central Board of Direct Taxes (CBDT) has issued Notification no. 19/2021 dated 26th March 2021 pertaining to procedure for registration including reapproval/revalidation of existing tax exemption registrations and tax deduction certificates. Reporting of donations received and issue of donation certificates has also been introduced.

The Notification can be read/downloaded at:

https://www.incometaxindia.gov.in/communications/notification/notification_19_2021.pdf

Date of effectiveness

The new Rules and Forms will be applicable from 1st April 2021 and all charitable trusts and institutions already registered u/s 12A or 12AA or 10(23C) and having 80G certificate must apply for reapproval/revalidation of their registration before 30th June 2021.

Procedure for re-approval of tax exemption

Charitable trusts and institutions already registered u/s 12A or 12AA must reapply in Form No.10A anytime between 1st April to 30th June 2021. The renewed registration will be valid for a period of five years.

The application must be submitted electronically (online) and verified digitally along with the following documents (duly self-certified):   

  • Registration Certificate or Certificate of Incorporation (issued by charity commissioner, registrar of societies or registrar of companies)
  • Trust deed or Memorandum and Articles of Association
  • Registration Certificate under FCRA (if applicable)
  • Registration order under 12A/12AA (issued earlier by Income tax)
  •  Audited statements of account for the last three financial years 
  • Note on the activities of the institution
  • Registration under NGO Darpan
  • Details of asset/liabilities as on the date of application (if applicable)   

Procedure for re-approval of tax deduction certificate u/s 80G

Charitable trusts and institutions already having 80G certificate must reapply in Form No.10A (the same as for reapproval of 12A/12AA registration) anytime between 1st April to 30th June 2021. The renewed registration will be valid for a period of five years.

The application must be submitted electronically (online) and verified digitally along with the following documents (duly self-certified):   

Reporting and Certificate of donations

Starting 1st April 2021, all charitable institutions which are approved under section 80G shall be required to furnish a statement of donations received during a financial year 2021-22. This statement of donations must be furnished electronically and verified digitall in Form 10BD on or before 31st May 2022

The form requires providing the following details:    

  • Name, address & PAN of the donor
  • Type of donation (corpus, grant, general, etc.)
  • Amount of donation
  • Mode of receipt (cheque, electronic, cash, kind) 

From 1st April 2021, all charitable institutions which are approved under section 80G shall also be required to furnish to the donor a certificate of donations received during a financial year. This certificate will have to be generated electronically (and verified digitally) in Form 10BE on or before 31st May 2022

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