CBDT issues clarifications on Form 10AC (Registration of Trusts & Institutions)
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- Last Updated on 4 June, 2022
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Circular no. 11/2022, dated 03-06-2022
The Finance Act, 2022 has inserted amended provisions of the Income-tax Act allowing the Principal Commissioner or Commissioner of Income-tax to examine if there is any ‘specified violation’ by the trust or institution registered or provisionally registered. After examination, an order is required to be passed for either cancellation of the registration or refusal to cancel the registration.
In view of the amendments made vide Finance Act, 2022, the conditions subject to which the registration/approval or provisional registration/ provisional approval was granted to trusts and institutions need to be revised to align the same with the amendments made by Finance Act, 2022.
Thus, the Central Board of Direct Taxes (CBDT) has issued a circular clarifying that:
1. Conditions for grant of registration under sections 12AB, 10(23C), and 80G
The Board has listed down the revised conditions that should be followed by the trust or institution seeking:
a) Re-registration and provisional registration under section 12AB,
b) Re-approval and provisional approval under section 10(23C), and
c) Re-approval and provisional approval under section 80G
The conditions contained in Form No. 10AC, issued between 01.04.2021 till the date of issuance of Circular, i.e., 03-06-2022, shall be read as if the said conditions had been substituted with the conditions as provided by the board with effect from 1st April 2022.
2. Provisional registration/approval to be deemed as registration/approval
The Board has clarified that if due to technical glitches, Form No. 10AC has been issued during FY 2021-2022 with the heading “Order for provisional registration” or “Order for provisional approval” instead of “Order for registration” or “Order for approval”, then all such Form No. 10AC shall be considered as an “Order for registration or approval”.
Click Here To Read The Full Circular
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