Income Tax Portal enables Form 10AB for trust whose 12AB/80G was rejected

The Income Tax Department has enabled Form 10AB for trust whose 12AB/80G was rejected on their Income Tax E-filing Portal.

Goods News for Trust whose registration under section 12AB and 80G was rejected, whatsoever may be the reason like Non Compliance, Withdrawal at the behest of the Income Tax Department, Withdrawal for any other reason, Due to filing Form 10AB, after 6 months from the start of activity.

In all such cases, the option of filing Form 10AB has been enabled again on the portal from today.

What is 12AB and 80G?

Registration under Section 12AB entitles the Non Profit Organisation to a tax exemption. Failure to do so will render them eligible for ITR filing. The 80G section, on the other hand, assures that a person making a donation to an NGO can deduct the amount from their taxable income, resulting in greater donations.

What is Form 10AB?

Two separate forms have been prescribed for a trust, institution, or NGO as per the new rules: Form No. 10A: For provisional registration. Form No. 10AB: For conversion from provisional registration to permanent registration.

All trusts or institutions that get temporary enrollment or permission for a 3-year period must submit an application in Form No. 10AB within 6 months of the start of charitable activity. These trusts would be granted permanent enrollment after submitting Form No. 10AB.