CBDT extends due dates for filing Form 10A and 10AB via circular No.7/2024

New financial year has started with a great  news for charitable trusts and institutions where a recent circular of CBDT dated 25th April, 2024 which is circular 07/2024 has given relaxation to taxpayers facing hardships in getting their trusts or institutions registered under section 10(23C)/12A or 80G. Various taxpayers  had approached department regarding hardships being faced by them with respect to getting such trusts registered and earlier CBDT had extended due date for getting it registered till 30.09.2023 in circular 06/2023.

Form 10A applies to a charitable or religious trust for applying and obtaining registration under Section 12A. 

All trust or institutions that obtain the provisional enrolment or approval for a 3-year duration are required to make the application in Form No. 10AB in 6 months within the start of the charitable activities by such trusts. These trusts would obtain a permanent enrolment after making the application in Form No. 10AB. 

Due date extension:
CBDT has extended the the due date for filing Form 10A/ Form 10AB which are required for filing registration application with Income Tax department under the Income-tax Act, 1961 (the ‘Act’) upto 30th June, 2024.

Form 10A is crucial for entities seeking tax exemption under section 12A of the Income Tax Act, 1961. It validates their eligibility as charitable or religious organizations. Meanwhile, Form 10AB is essential for the renewal of tax exemptions under sections 10(23C), 12A and 80G.

CBDT has stated that, if any such existing trust, institution or fund applying for registration had failed to file Form 10A for AY 2022-23 within the extended due date i.e. 30/09/2023, and subsequently, applied for provisional registration as a new entity and received Form 10AC, can also now avail this opportunity to surrender the said Form 10AC and apply for registration for AY 2022-23 as an existing trust, institution or fund, in Form 10A till 30th June 2024.

The Principal Commissioner of Income Tax or Commissioner of Income Tax will pass the order of granting the registration or approval in Form No. 10AC where an applicant applies to Form 10A. 10AC has been issued during FY 2021-2022 with the heading “Order for provisional registration” or “Order for provisional approval” instead of “Order for registration” or “Order for approval”, then all such Form No. 10AC shall be considered as an “Order for registration or approval.

Who is eligible under this circular for such extension?

Following are persons covered under this circular who are eligible to file form 10A and Form 10AB:

  • trusts, institutions and funds filing form 10A/10AB
  • people who have failed to file Form 10A for AY 2022-23 within due date and received form 10AC for AY 2022-23 can surrender such form 10AC
  • whose applications for re-registration were rejected solely on the grounds of late filing or filing under wrong section code

Taxpayers have from time to time faced hardships while getting their trust, institutions or funds registered under section 10(23C), section 12A and Section 80G. Considering these hardships CBDT has decided to extend the due date for filing form 10 and Form 10AB till 30th June , 2024 which was earlier till 30th September, 2024. Circular 7/2024 has listed down various categories of applicants who can avail use of this circular.

About Author:
CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.

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