Explore everything about Renewal Section 12AB Charitable Trusts – applicability, due dates, and format – to stay compliant with the Income Tax Act in India.
The renewal of registration for charitable trusts and institutions under Section 12AB of the Income Tax Act is a crucial compliance requirement in India’s evolving taxation landscape. With the introduction of Section 12AB via the Finance Act, 2020, the traditional perpetual registration system has been replaced by a more structured, time-bound framework.
This blog unpacks the renewal process under Section 12AB, its applicability, the format and forms required, and the renewal of trust registration due date, ensuring your trust remains compliant and continues to enjoy tax exemptions.
📌 What is Section 12AB of the Income Tax Act?
Section 12AB was inserted by the Finance Act, 2020, replacing the perpetual registration system under Section 12A with a time-bound registration regime. It came into effect from 1st April 2021 and applies to all new and existing charitable trusts and institutions seeking exemption under Sections 11 and 12.
Now, every registered trust must renew its registration every five years, even if it was previously granted a lifetime registration.
✅ Renewal Section 12AB Charitable Trusts Applicability
The renewal under Section 12AB applies to:
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Trusts already registered under Section 12A or 12AA prior to April 1, 2021.
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Trusts or institutions that received provisional registration under the new regime.
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Trusts that have completed 5 years of registration under Section 12AB and are due for renewal.
If your trust falls under any of the above categories, the renewal process is mandatory to maintain tax-exempt status.
📝 Renewal Section 12AB Charitable Trusts Format and Forms
There are two primary forms involved in the registration and renewal process:
1. Form 10A
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Used for initial registration under the new regime or for renewal of registrations under the old regime.
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Applicable for trusts registered under 12A/12AA as of 1st April 2021.
2. Form 10AB
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Used for:
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Final registration after provisional approval.
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Renewal of 5-year registrations under Section 12AB.
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Modification of objects requiring fresh registration.
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Ensure that all applications are filed electronically via the Income Tax portal with the necessary documentation, including trust deeds, PAN, activity reports, and audited financials.
📅 Renewal of Trust Registration Due Date
One of the most critical compliance aspects is adhering to the renewal of trust registration due date. Here’s a summary:
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For provisional registrations, apply for final registration using Form 10AB at least 6 months before the 3-year period expires.
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For trusts already registered under the old regime, Form 10A had to be filed by September 30, 2023 (extended via CBDT circular).
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Future renewals under Section 12AB must be made at least 6 months before the expiry of the 5-year registration period using Form 10AB.
📌 Note: As per the latest circular, trusts that failed to migrate by the due date may surrender their Form 10AC provisional registration and reapply before June 30, 2024 to regularize their status.
🚫 No Condonation for Delays Under Section 12AB
A major change under Section 12AB is the absence of any provision for condonation of delay in filing Forms 10A or 10AB. Trusts missing deadlines risk losing their eligibility for tax exemption, with no statutory remedy currently available. This underscores the importance of timely filing and monitoring of compliance timelines.
✅ Conclusion: Stay Proactive, Stay Compliant
With Section 12AB now firmly in place, charitable trusts must adopt a proactive compliance approach. Understanding the renewal section 12AB charitable trusts applicability, knowing the format, and tracking the renewal of trust registration due date are essential to retain benefits under the Income Tax Act.
Missing deadlines can be costly, both in terms of losing exemptions and reputation. Ensure your trust is aligned with the latest requirements, maintains accurate records, and files renewal forms within the prescribed timeframe. For assistance with filing or legal representation in matters relating to Section 12AB of Income Tax Act, consult with a qualified tax professional or legal expert.
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This content is for general informational purposes only and does not constitute legal advice.