Finance Act 2020 -Existing NGO’s And Trusts To Be Re-Registered U/S 12AB

All existing charitable trusts have to re-register themselves under section 12AB from 01.04.2021

1. All existing charitable trusts registered U/S 12A, Section 12AA, Section 10(23C) and Section 80G of the Income Tax Act, need to be registered under the new Section 12AB to claim an exemption under section 10 or 11, as the case may be. These changes have been made in Finance Act 2020.

2. The registration under Section 12AA of IT Act has been omitted with effect from June 01, 2020, due to the insertion of sub-section (5) in Section 12AA. Section 12AB (Procedure for fresh registration) was to come into effect from 1 June 2020. The Trusts or Institutions were required to apply for registration and approval under new Section 12AB within 3 months from1 June 2020.

3. The New Registration procedure prescribed under section 12AB for charitable trusts and institutional introduced by Finance Act 2020 has been deferred and extended to 01 April 2021 by the Taxation and Other Laws (Relaxation and Amendments of Certain Provisions) Act, 2020.

4. Hence now all existing trusts have to re-register themselves under section 12AB from 01.04.2021 and before the end of three months from the 1st Day of April 2021.

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