New Registration & Renewal Procedures Of Charitable and Religious Trust & Institutions
New Registration & Renewal Procedures Of Charitable and Religious Trust & Institutions Under
A. Income Tax Act
B. Foreign Contribution Regulation Act
C. Corporate Social Responsibility Under Companies Act.
CA. P.J. Johney FCA
Introduction.
•In Order to Claim Exemptions Under Section 11 & 12 Of Income Tax Act, 1961, It Is Mandatory For All Trust/Society/Institution to Get Registration Under Section 12a Of The Act.
•As Per The Notification No. G.S.R. 212(E) Dated 26.03.2021, Central Board Of Direct Taxes, Ministry Of Finance , Has Made New Provisions By The Introducing The Income Tax (6th Amendment) Rules, 2021.
•Earlier Registration Under 12a Was Given As One Time Registration and Once The Registration Is Granted It Will Held Good Till Cancellation. From 1st April 2021, All New Registration Will Be Given For 5 Years Only and Organisation Has to Apply For Renewal After Each 5 Years.
Renewal Of Registration Under Section 10(23c) ,12AB, and 80G
•Earlier The Registration Under Section 12a/ 12aa, Approval Under Section 10(23c) and 80g Were Given Without Any Expiry Period. Now, These Registration and Approvals Shall Be Given Only For A Limited Time Period Of 5 Years. On Expiry Of Every 5 Years, The Registration/ Approval Have to Be Re Obtained.
•The Application For Renewal Of The Approval/ Registration Will Have to Be Given Within The Period Of 3 Months From The Date Of Coming In to Force Of The Amendment. Due to The Covid-19 Outbreak, The Effective Date Of This Provision Has Been Deferred to 1st April 2021. Therefore Application For Renewal Is to Be Made Before 30th June 2021.
•On Receipt Of The Application, The Pcit/ Cit Will Pass An Order For Registration/ Approval For The Period Of 5 Years. The Order For Registration / Approval In Such Cases Will Be Required to Be Passed Within 3 Months From The End Of The Month In Which The Application Will Be Filed.
•The New Approval/ Registration Will Be Applicable From The Assessment Year From Which The Approval/ Registration Was Originally Granted Under The Existing Provisions.
New Registration
•The Provisional Approval May Be Granted For The Period Of 3 Years (Without Any Discretion In The Hands Of The Authorities For Any Period Less Than 3 Years Etc.).Later, Full/ Final Registration/ Approval May Be Granted In The Prescribed Procedure.
•The Application For Fresh Registration/ Approval (Towards 12ab, 10(23c) and 80g) Is to Be Made At Least One Month Prior to The Commencement Of The Previous Year Relevant to The Assessment Year From Which Said Approval / Registration Is Sought.
•After The Expiry Of 3years , The Trust/Society / Institution Has to Apply In Form No. 10ab For 12AB Registration.
Details Required
1.Income Tax E-Filing User Id & Password (Https://Www.Incometaxindiaefiling.Gov.In/)
2.Exemption Claimed Under –
(A) 12AA
(B) 10(23C)
(C) 80G
(D) Sec. 35.
3.Nature Of Activity
A.Charitable
B.Religious
C.Religious Cum Charitable
4.Type Of Constitution
A. Trust
B. Society
C. Company (Registered With
Companies Act Section 8 Or 25)
D. Others
5.Date Of Incorporation
6.Registration Or Incorporation Number. (For A Trust, Please Provide The Document Number)
7.Please Mention The Objects Of The Applicant (More Than One May Be Ticked If Applicable)
A. Religious
B. Relief Of Poor
C. Educational
D. Medical Relief
E. Yoga
F. Preservation Of Environment
G. Preservation Of Monuments
H. Advancement Of Any Other Objects
of General Public Utility
8.Whether The Trust Deed Contains Clause That The Trust Is Irrevocable (Applicable Only For Trust)
9.Whether the Applicant is Registered With DARPAN or FCRA
If Yes Please Provide The Following of
A.Relevant Law (FCRA Or Darpan Or Both)
B.Registration Number / Numbers
C.Date Of Registration / Dates
D.Authority Granting Registration / Authorities
E. Date From Which Registration Is Effective / Dates
10.Whether Any Application Of Registration Made By The Applicant In The Past Has Been Rejected
11.Whether Claiming Exemption Under Clause 10(21) Read With Sec. 35 (Research Programmes)
12.Details Of The Members Of The Governing Council / Executive Committee / Board Of Trustees Etc.
(Please Provide The Details Of Each One Separately)
A.Name
B.Designation (President / Secretary / Treasurer / Director / Member Etc.)
C.Pan / Aadhar / Passport Etc. Of The Person
D.Full Address Of The Person With Pin Code
E.Mobile Number
F.Email Address
13.Does The Applicant (Ngo) Filed Income Tax Return For The Financial Year 2019-20 (31-03-2020)
14.Photo Copy Of Every Page Of
A.Trust Deed, In Case Of Trust
B.Memorandum Of Association and Bye-Law In Case Of A Society
C.Memorandum and Articles Of Associations Incase Of A Sec. 8 Company (Formerly Sec. 25 Companies)
D.FCRA Registration Certificate
E.Existing Order Granting Registration Under Section 12a Or Section 12aa Or Section 12ab.
F.Registration Certificate .
15.Every Page Of The Above Shall Be Affixed With Following Seals (Self Attested).
A.Certified True Copy Or True Copy
B.One Seal Having The Following Details
i. Designation - President / Secretary (Designation As Given By The Npo)
ii. Organization Name
iii. Address With Pin Code
C.Round Seal - Name Of The Applicant and Place (Chennai)
16.A. Audited Accounts With Audit Report In Form
No. 10b For The Financial Years 2017-18, 2018-19 & 2019-20 (3 Years) – These Statements Are Not Required If The Itr For The Previous Financial Year Is Filed.
B. The Above Shall Be Duly Attested By The President / Secretary Etc. and Affixing Above All 3 Seals By The Executive.
17.Once The Above Are Correctly Uploaded An Otp Will Get The Income Tax Aadhar Linked Principal Contract Person.
18.Kindly Provide The Otp to Submit The Form.
Requirement to File Statement Of Donation and to Issue Certificate to Donors
•With Effect From Financial Year 2021-22, The Institutions Notified Under Section 35 Or Approved Under Section 80g Are Required to File A Statement Of Donation Received Under Form 10bd and Also to Issue The Certificate to The Donor In Form 10be Specifying The Amount Of Donation Received During Financial Year From Such Donor. Both The Forms Shall Be Filed On Or Before The 31st May, Immediately Following The Financial Year In Which The Donation Is Received.
•Deduction On Account Of The Donation Shall Be Allowed to The Donor Only On The Basis Of The Statement Filed By The Donee Trust Or Institution. Hence, If A Statement Is Not Filed, The Donor Will Not Get Any Deduction For The Donations Made.
•In Case Of Delay In Filing Such Statement, A Late Fee Of Rs. 200 Per Day Shall Be Applicable Under Newly Inserted Section 234g Of The Income-Tax Act. Further, A Penalty Under Section 271k, Which Shall Not Be Less Than Rs. 10,000 and Which May Extend Up to Rs. 1 Lakh, Shall Be Leviable.
Foriegn Contribution Regulation Act-Renewal
•As Per The Fcra Act 2010, The Validity Of The Registration Certificate Is For A Period Of 5 Years. It May Be Noted That In The Old Law Fcra Registration Was Virtually Permanent In Nature Unless It Was Revoked. Fcra 2010 Provides For Renewal Of Registration Of Organizations After Every 5 Years.
•Association Which Desire to Renew Their Registration Certificate May Apply Online In Form Fc-3c Six Months Before The Expiry Of Their Existing Registration
•The Fcra Amendment Act, 2020 Dated 29th September 2020, Specifies That The Central Government Is Empowered to Make Inquiries and Satisfy Itself With Respect to Compliance Of Section 12(4) Prior to Fcra Renewal.
•The Fcra Amendment Act, 2020 Dated 29th September 2020, Specifies That The Central Government Is Empowered to Make Inquiries and Satisfy Itself With Respect to Compliance Of Section 12(4) Prior to Fcra Renewal.
•In Case An Ngo Fails to Apply For Renewal Within The Due Date, Its Registration Shall Become Invalid. The Department May Condone The Delay If Satisfactory Reasons For Not Submitting The Renewal Application Are Provided.
•Rule 12(6) Of Fc(R) Rules 2011 Provides That In Case No Application For Renewal Of Registration Is Received Or Such Application Is Not Accompanied By The Requisite Fee, The Validity Of The Certificate Of Registration Of Such Person Shall Be Deemed to Have Ceased From The Date Of Completion Of The Period Of Five Years From The Date Of The Grant Of Registration.
•For Example, If No Application Is Received Or Is Not Accompanied By The Renewal Fee, The Validity Of The Registration Certificate Issued On The 1st November, 2016 Shall Be Deemed to Have Lapsed With Effect From The Close Of The Day On 31st October, 2021
•Rule 12(6) Of Fc(R) Rules 2011 Provides That In Case No Application For Renewal Of Registration Is Received Or Such Application Is Not Accompanied By The Requisite Fee, The Validity Of The Certificate Of Registration Of Such Person Shall Be Deemed to Have Ceased From The Date Of Completion Of The Period Of Five Years From The Date Of The Grant Of Registration. An Application Made For The Renewal Of The Registration Shall Be Accompanied By A Fee Of Rs. 1500 (Fifteen Hundred Only). However, A Delayed Renewal Application Shall Be Accompanied By A Fee Of Rs. 5000(Five Thousand Only).
Documents Required for FCRA Renwal
1.Image of Signature of Chief Functionary
2.Image of Seal of The Association.
3.Registration Certificate of The Association
4.Memorandum of Association/ Trust Deed
5.FCRA Registration Certificate of Association Issued By MHA.
6.Associations Has to Upload Affidavit of Each
Key Functionary
7.Details of Each Key Functionary Including Aadhar of The Board Members In Case of Indian Members and Copy Of Passport or Overseas Citizen Card (OCI) In Case of Foreign Members.
Companies Act
Corporate Social Responsibility
•Every Company Having Net Worth Of Rs 500 Crore Or More, Or Turnover Of Rs 1,000 Crore Or More Or A Net Profit Of Rs 5 Crore Or More During Any Financial Year Shall Constitute A Corporate Social Responsibility Committee Of The Board Consisting Of Three Or More Directors, Out Of Which At Least One Director Shall Be An Independent Director.
•As Per 135(5) , The Board Of Every Company Referred to In Sub-Section (1), Shall Ensure That The Company Spends, In Every Financial Year, At Least 2 % Of The Average Net Profits Of The Company Made During The Three Immediately Preceding Financial Years, In Pursuance Of Its Corporate Social Responsibility Policy.
•As Per The Notification G.S.R 40(E) Dated 22-01-2021, An Unregistered Trust Will Not Be Eligible For Csr Funding Mandatory Registration With Mca For Getting Csr Funding. All The Trust Accepting Csr Funds From Corporate Entities Should Obtain ‘Unique Csr Registration No ’ From Ministry Of Corporate Affairs.
Documents Required For Filing Form CSR -01
1.Copy Of Pan Card of The NGO
2. Mail Id and Mobile Number
3. Details Of Governing Body Members (Updated Change Report)
4. Copy Of Registration Certificate
5.Board Resolution Authorising The Representative For The Compliance
6. Digital Signature Of The Authorised Person With His Pan Number.
Declaration By The Practising Professional.
•The Form CSR -01 Could Be Submitted Only When The Practising Professional Such As Chartered Accountant /Company Secretary/Cost Accountant Verifies The Particulars In The Form Csr -01 and The Documents Submitted By The Trust.
•The Form Should Be Digitally Signed By The Practising Professional.
Conclusion
There Are Certain Issues and Suggestions With Regard to The Renewal and Registration Process:
1.Time Limit For Renewal- The Renewal Is to Be Completed Within 30-06-2021.
2.Renewal After Every Five Years- Earlier The Registration U/S 10(23c), 12a , 12aa and 80g Was Permanent. But As Per The New Provisions The Renewal Of The Registration Is to Be Done Every Five Years With Required Documents.
3.Registration After Provisional Approval- A Application In Form 10ab Is to Be Submitted Before The Expiry Of Provisional Approval.
4.Various Details Of Board Members-Various Details Such As Pan , Aadhar Card and Address Details Of The All The Board Of Trustees Is to Be Submitted.
5.For All Institutions Applying For Fresh Registration and Institutions Who Have 12a /12aa Registration Applying For Renewal But Who Has Not Filed The Income Tax Return For The Previous Year , The Details Of Assets and Liabilities As On The Date Of Application Is to Be Submitted.
6.For All Institutions Applying For Fresh Registration and Institutions Who Have 12a /12aa Registration Applying For Renewal But Who Has Not Filed The Income Tax Return For The Previous Year , The Details Of Income For Three Previous Year Has to Be Submitted.
7.The Incomplete / Wrong Data If Provided Can Lead to Cancellation Or Rejection Of The 12A/12AA.
8.Communication Of Notices/Orders Through Income Tax Portal, Therefore The Regular Checking Of Income Tax Website Is Required to Submit Timely Response.
9.Verifications Of The Original Documents Of The Society/ Trust/ Institution and Also Physical Verification Of The Registered Office.
10.Applicant Created Otherwise Than By An Instrument- Self Certified Copy Of The Document Evidencing The Creation Of Institution Should Be Produced While Submitting The Form.