The Income Tax Department implemented changes to the registration, verification, and approval process for trusts and charities under the Income Tax Act of 1961. These changes were introduced through the Finance Act of 2020 and 2021, resulting in the addition of sections such as Section 12A, Section 12AA, and Section 12AB. The purpose of these additions was to streamline taxation procedures and make the claiming process more efficient and user-friendly.

From 1st April 2022, trusts were mandated to transition from Section 12AA to the provisions outlined in Section 12AB. These trusts are divided into two categories: public trusts and private trusts. Within the public trust category, there are further distinctions between public charitable trusts and public religious trusts.

As part of the recent changes, a new and revised form with 21 points was introduced. It is crucial for responsible taxpayers to familiarize themselves with the different sections and forms related to the Income Tax Act of 1961, including Form 10A and Section 12A. Taking the time to understand these aspects will ensure compliance with tax regulations and help you fulfill your legal obligations.

What is Form 10A?

Form 10A is a document used for the application of registration or re-registration under various sections of the Income Tax Act in India. It is primarily used for trusts, religious institutions, and other entities seeking tax-exempt status.

Form 10A requires detailed information about the organization, including its objectives, activities, governing body, financial details, and compliance with the necessary legal requirements.

This form is submitted to the Income Tax Department for the purpose of obtaining or renewing tax benefits and exemptions. It plays a crucial role in the legal and tax compliance of the organization.

For permanent registrations, the approved status remains valid for a period of 5 years. However, prior to the completion of the 5-year duration, a re-registration application must be submitted.

The application for registration renewal should be filed 6 months before the expiration of the previous permanent registration. This allows sufficient time for the Income Tax Department to review and process the renewal application, ensuring the continued validity of the registration status for the organization.

Changes Made In Form 10A

When filling out Form 10A, there are six sections that require you to provide essential information and data. These sections cover previous registrations, constitution, incorporation, key entities involved, assets and liabilities, religious activities, and income.

To complete the form, you have the option to fill it online. Each section needs to be selected and filled out one at a time, ensuring that all the required information is provided accurately. It is crucial to save the data after thoroughly completing each of the six sections.

In the constitution and incorporation section of the form, you are required to enter the institution's or trust's inception date or registration date. This information helps establish the timeline and legal status of the organization.

How to Fill Form 10A?

The Income Tax Department has introduced a new portal for the electronic filing of ITR forms and submitting related documents. This portal allows you to fill out form 10A online, eliminating the need for manual filing of Section 12A at the Income Tax Department. Below are the steps to guide you through the e-filing process on the new income tax portal.

Step 1: Go to the official website www.incometax.gov.in to access the Income Tax portal.

Step 2: Click on the 'e-File' option.

Step 3: Choose 'Income Tax Forms' from the available options.

Step 4: Select 'File Income Tax Forms' from the menu.

Step 5: Opt for 'Persons not dependent on any source of income (source of income not relevant)'.

Step 6: Click on the 'File Now' option under Tax Exemption and Relief Form 10A.

Step 7: Fill in all the required details and submit the necessary documents.

Step 8: Select the assessment year from the provided dropdown menu.

Step 9: Click on 'Continue' and then choose 'Let's Get Started' to begin filling out the form.

Step 10: Enter a digital signature or an electronic verification code, and submit the completed form.

Documents Required For Filing Form 10A

Form 10A of the Income Tax Act necessitates the submission of specific self-attested document copies alongside the completed form. The following is a list of essential documents required:

• Certificate of Registration

• Digital signatures from a trustee

• Foreign Contribution (Regulation) Act certificate

• Two copies of a Trust Deed/Memorandum of Association

• PAN card and Aadhaar card of managing trustees

• Current 80G, 12A, and 12AA certificates

• Annual accounts since the year of inception (income and expenditure proofs, payment accounts, balance sheet, etc.)

FAQs

• What is Form 10A?

Form 10A is a document used for the registration or re-registration of trusts, charitable institutions, and similar entities under various sections of the Income Tax Act.

• How can I file Form 10A online?

To file Form 10A online, you need to visit the official Income Tax Department website and log into the e-filing portal. Then, follow the steps provided to access the form and fill in the required details.

• Do I need any specific documents to file Form 10A online?

Yes, you will need certain documents such as the Certificate of Registration, Trust Deed/Memorandum of Association, PAN card and Aadhaar card of managing trustees, and other relevant certificates and financial documents. These documents should be scanned and uploaded as per the instructions on the portal.

• Can I save my progress while filling out Form 10A online?

Yes, most online platforms allow you to save your progress while filling out Form 10A. It is recommended to save your data after completing each section to avoid any loss of information.

• What is the purpose of filing Form 10A?

Form 10A is used to apply for registration or re-registration under various sections of the Income Tax Act, allowing trusts and charitable institutions to avail of tax benefits and exemptions.

• Is it mandatory to file Form 10A online?

Yes, it is now mandatory to file Form 10A online through the designated Income Tax Department portal for most trusts and charitable institutions.

Also, Read: "Opting for the New Tax Regime Allows You to Reduce 30% Tax Bracket".