Section 12AB and 80G (New Registration Process for NGOs)

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Deadline for 12A and 80G renewal under new provisions has been extended till 31st August, 2021.

The Finance Act, 2020 brought certain changes in the provisions related to NGOs in India for the new as well as already registered NGOs. As per the Finance Act, 2020, the new procedure was supposed to be rolled out wef 1^st June, 2020, but considering the COVID-19 outbreak in the country it was extended till 1^st April, 2021.

Under the new registration process brought in by the Finance Act, 2020 perpetuity concept of 12A and 80G registrations has been done away with which means all the existing NGOs registered under the old regime of the Income Tax Act will have to apply afresh for the registration under the new provisions of Section 12AB wef 1^st April , 2021 but before 30^th June, 2021 (Extended till 31^st August, 2021)

The new registration process would lead to more accountability and transparency on the cost of increased compliance burden to some small scale NGOs.

Validity of granted under the new provisions;

The registration under section 12AB and 80G will be valid for a period of 5 years for the already registered organizations and 3 years on provisional basis for the first time registered organizations.

Forms to be filled for 12AB and 80G registration;

CBDT has prescribed form 10A and 10AB and the same shall be furnished electronically.

Form 10A shall be filled in the following cases;

Application for revalidation for existing organizations already approved under section 12A/12AA/80G.
Application for provisional registration for the organizations not already registered under the old regime.

Form 10AB shall be filled in the following cases;

Application for conversion of provisional registration into regular
Renewal of registration after 5 years
Activation of inactive registrations under section 10(23C)/10(46)
Re-registrations for modification of objects for organizations registered u/s 12

Due date for filing Form 10A

Revalidation of existing registration – 31^st August, 2021
Fresh application for provisional registration – 1 month before the commencement of previous year for which the exemptions is sought.

Due date for filing Form 10AB

Conversion of provisional registration – Before 6 months of expiry of provisional registration or 6 months from the commencement of activities whichever is earlier.
Renewal of registration after 5 years – Before 6 months of expirty
Re-registrations for modification of objects – Within 30 days of modification

Furnishing of statement under section 80G

Wef the FY 2021-22 every trust/institution registered under section 80G will have to furnish an electronic statement of donors in Form 10BD annually on or before 31^st May of the subsequent financial year on the basis of which the deduction under section 80G will be available to the donors. Following information shall be required to furnish the statement in Form 10BD;

PAN/Aadhaar of donors (If PAN/Aadhaar of the donor is not available then any one of Passport/Election Card /Driving License/Ration Card/Tax Payers Identification Number
Type of donations (Corpus/Specific/Others)
Amount
Mode of receipt

Further a certificate in Form 10BE shall be made available for download to the Donor from the website of Income Tax Department. Also it is to be noted here that its mandatory to maintain complete record of all donors including PAN and address wef 1^st April, 2021.