Before going into the changes that took place through The Income Tax (6^th Amendment) Rules, 2021 let us first discuss in brief about Section 12A & Section 80G.

Section 12A: An NGO applies for Section 12A Registration to get income tax exemption on income. If NGO does not take the registration than Income tax has to be paid on the surplus fund.

Section 80G: An NGO applies for Section 80G Registration to provide benefit to the person who donates in an NGO. The donor gets deduction under Schedule VI-A of Income Tax Act on his taxable income.

CBDT vide its Notification dated 26.03.2021 has introduced new provisions related to registration and renewal under Section 12A & Section 80G which has been made applicable w.e.f. 01^st April 2021. The changes that took place are as follows-

1. All the existing NGO registered under Section 12A, Section 12AA, Section 80G and Section 10(23C) need to re-validate their registration through Form 10A on or before 30^th June 2021.
2. New application for provisional registration under Section 12AB/80G/10(23C) is to be applied through Form 10A within 1 month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought.
3. NGO which is registered or provisionally registered under Section 12AB and the same is due to expire needs to apply for re-registration or registration in Form 10AB atleast 6 months prior to expiry of registration or provisional registration or within 6 months of commencement of its activities whichever is earlier.
4. NGO whose registration has become inoperative due to first proviso of Section 11 (7) has to be activatedunder Section 10(23C) / 10(46) through Form 10AB atleast 6 months prior to the commencement of the assessment year from which the said registration is sought to be made operative.
5. If the objects of NGO is modified which do not confirm to the conditions of registration, re-registration for modification of objects for entities registered under Section 12AB in Form No. 10AB to be applied within a period of 30 days from the date of such modification.

Note:        1. Provisional Registration will be valid for a period of 3 years

                 2. Registration / Approval will be valid for a period of 5 years

DETAILS / DOCUMENTS REQUIRED FOR SUBMITTING FORM 10A AND 10AB

1. Registered Deed as per applicable laws
2. Registration certificate under Section 12A, 12AA or 12AB
3. Last 3 years Annual Accounts
4. NGO Darpan ID

Article Compiled By;-

CA. Vikram Dudhoria

Mobile: +91 98314-50528 

Landline: 033 4003 7673

Email: dudhoria@hotmail.com.

Web: http://www.dudhoria.in/