The Union Budget-2020 read with Notification No 19/2021 dated March-26-2021 has introduced various changes in the registrations procedures to be followed by the NGO as well as by the Income Tax Department while applying and obtaining/granting these registrations u/s 12AB and 80G.
Effective from April-01-2021, following significant changes are going to be implemented in the Income Tax Act, 1961 and Rules relating to the applications and grant of registrations to NGOs under Section 12AB, 80G and Section 35(1):-
|1||1.1. All NGOs which are already APPROVED under Section 12A/12AA and Section 80G as on this date + such NGOs who shall be seeking PROVISIONAL REGISTRATIONS with the Department shall file their Applications on Form-10A.|
1.2. All NGOs having provisional registrations shall at the time of seeking Final Registrations + All NGOs in future at the time of applying and obtaining subsequent registrations shall file their applications on Form-10AB.
1.3. Form-10G (for applying Registration u/s 80G) has been done away with.
1.4. Form-10A or Form-10AB is a common Form for both types of Registrations applied either Section 12AB and/or Section 80G Registrations.
|2||In all cases covered by Para 1.1. above, the Income Tax Department shall grant Registrations under section 12AB and Section 80G on Form No. 10AC.|
|3||Subsequently, In all cases covered by Para 1.2. above, the Income Tax Department shall grant Registrations under section 12AB and Section 80G on Form No. 10AD.|
|4||Registrations granted on Form No. 10AC and Form No.10AD shall carry a 16 digit alphanumeric Unique Registration Number (URN).|
|5||All Trust/ Societies/ Not-Profit Making Section-8 Companies granted Section 80G and Section 35(1) Registrations shall be required to file Online on Form No. 10BD; an “Annual Statement of Donations received” latest by May-31 immediately following the financial year in which the donation is received.|
First such return shall be applicable for the FY 2021-2022.
|6||The NGO shall be required to issue a “Certificate of Donation” to the Donor on Form-10BE for the amount of Donation given; (just like a TDS Certificate is issued to the payee).|
|7||All Research Association, Universities, Colleges or other institutions or companies which are approved under section 35(1) as on this date shall be required to intimate under fifth proviso to Section 35(1) to the Income Tax Department on Form No. 10A latest by June-30-2021.|
|8||All Research Associations, Universities, Colleges or other institution or Company shall apply for approval of their projects under (i) Scientific Research; (ii) Social Science Research or (iii) Statistical Research on one Common Form now i.e. Form-3CF and all other existing Forms 3CF-I, 3CF-II and 3CF-III have been done away with.|
Source: Notification No. 19/2021 dt. arch-26-2021 vide Income Tax (6th Amendment) Rules, 2021