Form No. 10AB of the Income-tax Act (ITA)

Navigating the complexities of tax compliance is crucial for organisations that aim to avail themselves of tax exemptions under the Income Tax Act, 1961. Form 10AB plays a pivotal role in ensuring continued eligibility for such exemptions, especially for charitable trusts, non-profit organisations (NPOs), and societies. Introduced under the Finance Act, 2020, this form has streamlined the registration and renewal process, making it more transparent and systematic. For entities seeking to maintain their tax-exempt status, understanding the purpose, due date, required documents, and application procedure for Form 10AB is essential.

Form 10AB is a critical document for charitable and religious trusts, societies, and non-profit organisations to apply for the renewal or conversion of their registration under Sections 12AB, 10(23C), and 80G of the Income Tax Act, 1961. It is also used for re-registration in cases where there have been modifications to the entity’s objectives or if the registration has become inoperative. This form ensures that organisations retain their eligibility for tax benefits and exemptions, facilitating their work in public welfare and charitable activities.

Form 10AB is applicable to various entities and scenarios. Below is an overview of its relevance:

Entities required to file Form 10AB:

• Charitable trusts and religious institutions.
• Societies and non-profit organisations registered under Sections 10(23C), 12A, 12AA, 35, or 80G.

Scenarios requiring Form 10AB:

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Eligible entities for filing Form 10AB include the following:

• Charitable trusts and religious institutions.
• Societies registered under the Registrar of Public Trusts or Companies.
• Non-profit organizations (NPOs) or NGOs seeking tax benefits under Sections 12AB, 10(23C), or 80G.
• Educational institutions and hospitals that qualify for tax exemptions.
• Entities seeking conversion of provisional registration to permanent registration.

• Self-certified copy of the trust deed, memorandum of association, or similar establishment document.
• Registration certificate issued by the Registrar of Public Trusts, Companies, or Societies.
• Registration under the Foreign Contribution (Regulation) Act (FCRA), if applicable.
• Annual accounts for the last three years (if applicable).
• Audit report prepared as per Section 44AB (if applicable).
• Existing registration order under Sections 12A, 12AA, or 12AB.
• Details and evidence of modifications in objectives, if any.
• A comprehensive note on the activities performed by the organisation.

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Timely filing of Form 10AB is crucial to avoid penalties or loss of tax-exempt status. The deadlines vary based on the scenario:

• New trusts: File one month before the commencement of the financial year in which charitable activities are planned.
• Conversion of provisional registration: File at least six months before the expiry of the provisional registration or within six months of starting charitable activities.
• Renewal of permanent registration: File at least six months before the expiry of the five-year registration period.

Filing Form 10AB is entirely online, making the process efficient and accessible. Follow these steps to complete the application:

1. Log in to the Income Tax Department’s e-filing portal at https://www.incometax.gov.in/iec/foportal.
2. Navigate to the “Income Tax Forms” section under the “e-File” tab.
3. Select “Form 10AB” and choose the relevant assessment year.
4. Provide details about the organisation’s activities, registration status, and financials.
5. Upload the required documents in the specified format.
6. Submit the form electronically using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

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Form 10AB is a vital tool for charitable trusts, societies, and non-profit organisations to secure and maintain their tax-exempt status under the Income Tax Act, 1961. Accurate filing not only ensures compliance but also protects entities from penalties and loss of benefits. To optimise your financial planning post-filing, consider investing your refunds or surplus funds in Bajaj Finance Fixed Deposit. 

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