What is Charitable Trust

Charitable institution is a non-profit organization whose primary objective is to philanthropy and social well being such as education, religious or other activities serving public interest or common good.

Which institutions are effected due to this amendment

• Already registered institutions u/s 12A/12AA/10(23C)/80G
• Educational/Medical institutions (10(23c))
• Charitable/ religious institutions (12A/12AA)

What are the provisions regarding registration

• In order to simplify the compliance for the new and existing charity institutions, the process of registration is now completely electronic under which a unique registration number (URN) shall be issued to all new and existing charity institutions.
• Also, now charitable trust can avail registration in either under section 10(23C) or under section 12A/12AA of Income Tax Act, 1961.

For an already registered institutes

They are required to make fresh application for registration within three months from 1st June, 2020 and registration will be approved by principal commissioner which will be valid for the period of 5 years and they can re-apply for registration at least before 6 month on expiry of such registration.

For an new entities

The applicant of fresh registration will get provisional registration for the period of 3 years and provisional registered institutions have to apply for final registration at least 6 months prior to expiry of provisional registration or within 6 months of commencement of its activities, whichever is earlier.

What are the provisions regarding donations (section 80G)

The institutions registered under this section are also required to make fresh application for registration within three months from 1st June, 2020 and registration will be approved by principal commissioner which will valid for the period of 5 years and institutions can re-apply for registration at least before 6 months on expiry of such registration.

What are other compliance requirement impose on the institutions

The charitable institutions receiving donations are required to Issue certificate of donation to the donor (For the purpose claiming deduction u/s 80G) and also institutions are required to fill the information of donor to the Income Tax Department.

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