Procedure for Registration / Re-registration of Trust or Institution [Section 12A(ac)]:

Following are the Procedures for Registration / Re-Registration of Trust or Institution under Section 12A(ac)

1. Existing Trusts Registered under Section 12A or Section 12AA to make fresh Application for Reregistration [Section 12A (1) (ac)(i)]

Where the trust was registered under section 12A or under section 12AA, before 1.4.2021, it should make an application within 3 months from the date on which this clause has come into force in new Form 10A and manner to  the Principal Commissioner or Commissioner, for registration of the trust or institution. This clause has come into force w.e.f. 1.4.2021 and hence application for grant of approval should be made latest by 30.6.2021. [Further extended till 3 1.8.2021]

Grant of Registration to such Trust or Institution (Section 12AB (1)

The Principal Commissioner or Commissioner, on receipt of an application made under section 2A(1)(ac)(i), shall pass an order in writing registering the trust or institution for a period of 5 years. [Section 12AB(1)(a)]

Time Period within which order of registration should be passed [Section 12AB (3)]

Before expiry of the period of 3 months calculated from the end of the month in which the application was received.

Assessment Year from which Registration shall apply [First Proviso to Section 12A (2)]

It shall apply to a trust/institution from the assessment year from which such trust or institution was earlier granted registration. [Clause (a) of first proviso to section 12A (2)]

2. Application for Renewal of Registration [Section 12A (1) (ac)(ii)]

Where the trust or institution is registered under section 12AB and the period of the said registration is due to expire, it should apply for renewal of registration in new Form 10AB and manner to the Principal Commissioner or Commissioner at least 6 months prior to expiry of the said period of 5 years.

Grant of Registration to such Trust or Institution [(Section 12AB (1)]

Where the application is made under section 12A (1) (ac)(ii), the Principal Commissioner or Commissioner, on receipt of an application—

(i)         call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about—

(A)       the genuineness of activities of the trust or institution; and

(B)        the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; and

(ii)        after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A), and compliance of the requirements under item (B), of sub-clause (i). –

(A)       pass an order in writing registering the trust or institution for a period of 5 years;

(B)        if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard;

Time Period within which order of registration should be passed [Section 12AB (3)]

Before expiry of the period of 6 months calculated from the end of the month in which the application was received.

Assessment Year from which Registration shall apply [First Proviso to Section 12A (2)]

It will apply from the assessment year immediately following the financial year in which such application is made.

3.  Application for First Time Registration [Section 12A (1) (ac)(vi)]

Where first time registration is required, the application should be made in new Form 10A and manner to the Principal Commissioner or Commissioner at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought.

Pending application for registration shall he deemed to be application for Registration as per section 12A (1)(ac)(vi) [Section 12AB(2)]:

All applications, pending before the Principal Commissioner or Commissioner on which no order has been passed under section 12AA (1)(b) before the date on which this section has come into force (i.e., 1.4.2021), shall be deemed to be an application made under section 12A (1) (ac)(vi) on that date.

Grant of Registration to such Trust or Institution [(Section 12AB (1)]

Where the application is made under section 12A(1) (ac)(vi), the Principal Commissioner or Commissioner, on receipt of an application shall pass an order in writing provisionally registering the trust or institution for a period of 3 years from the assessment year from which the registration is sought. [Section 12AB(1)(c)]

Time Period within which order of registration should be passed [Section 12AB (3)]

Before expiry of the period of 1 month calculated from the end of the month in which the application was received.

Assessment Year from which Registration shall apply [First Proviso to Section 12A (2)]

It will apply from the assessment year immediately following the financial year in which such application is made.

4. Application for Regular Registration after Grant of Provisional Registration [Section 12A (1) (ac)(iii)]

Where the trust or institution has been provisionally registered under section 12AB (1)(c), it should make an application under section 12A (1) (ac)(iii) in Form I OAB and manner to the Principal Commissioner or Commissioner for regular registration of trust at least 6 months prior to expiry of period of the provisional registration
or
within 6 months of commencement of its activities,

whichever is earlier.

Grant of Registration to such Trust or Institution [(Section 12AB (1)]

Where the application is made under section 12A(1 )(ac)(iii) for regular registration after the provisional registration granted under section 12AB(1)(c), the Principal Commissioner or Commissioner, on receipt of an
application—

(i)         call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about—

(A) the genuineness of activities of the trust or institution; and

(B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; and

(ii)        after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A), and compliance of the requirements under item (B), of sub-clause (i),—

(A)       pass an order in writing registering the trust or institution for a period of 5 years;

(B)        if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard;

Time Period within which order of registration should be passed [Section 12AB (3)]

Before expiry of the period of 6 months calculated from the end of the month in which the application was received.

Assessment Year from which Registration shall apply [First Proviso to Section 12A (2)]

It shall apply to a trust/institution from the first day of the assessment year from which it was provisionally registered [Proviso to section 12A(2)]

Note.—For renewal of registration after the grant of registration for 5 years, see point (2) above.

5.  Application for Grant of Registration where the Registration has become Inoperative due to the First Proviso to Section 11(7) [(Section 12A (1) (ac)(iv)]

Where registration of the trust or institution has become inoperative due to the first proviso to section 11(7), it should make an application under section 12A (1) (ac)(iv) in Form 10AB and manner to the Principal Commissioner or Commissioner for registration of trust at least 6 months prior to expiry of period of the assessment year from which the said registration is sought to be made operative.

Section 11(7) and First Proviso to Section 11(7) provides as under:

Where a trust or an institution has been granted registration under section 12AA or section 12AB or has obtained  registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996] and the said registration is in force for any previous year, then, nothing contained in section 10 other than section 10(1), section 10(23C) and section 10(46)) thereof shall operate to exclude any income derived from the property held under trust from the total income of the person in receipt thereof for that previous year.

Provided that such registration shall become inoperative from the date on which the trust or institution is approved under section 10(23C) or is notified under section 10(46), as the case may be, or the date on which this proviso has come into force, whichever is later.

Grant of Registration to such Trust or Institution [(Section 12AB (1)]

Where the application is made under section 12A (1) (ac)(iv), the Principal Commissioner or Commissioner, on receipt of an application—

(i)         call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about—

(A)       the genuineness of activities of the trust or institution; and

(B)        the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; and

(ii)        after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A), and compliance of the requirements under item (B), of sub-clause (i), –

(A)       pass an order in writing registering the trust or institution for a period of five years;

(B)        if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard.

Time Period within which order of registration should be passed [Section 12AB (3)]

Before expiry of the period of 6 months calculated from the end of the month in which the application was received.

Assessment Year from which Registration shall apply [First Proviso to Section 12A (2)]

It will apply from the assessment year immediately following the financial year in which such application is made.

Note.—For renewal of registration after the grant of registration for 5 years, see point (2) above.

6.  Registration where the Trust has adopted or undertaken Modifications of the Objects [Section 12A (1) (ac)(v)]

Where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, it should make an application under section 12A (1) (ac)(v) in Form 10AB and manner to the Principal Commissioner or Commissioner for registration of trust within a period of 30 days from the date of the said adoption or modification.

Grant of Registration to such Trust or Institution [(Section 12AB (1)]

Where the application is made under section 12A (1) (ac)(v), the Principal Commissioner or Commissioner, on receipt of an application—

(i)         call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about—

(A)       the genuineness of activities of the trust or institution; and

(B)        the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; and

(ii)        after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A), and compliance of the requirements under item (B), of sub-clause (i),—

(A)       pass an order in writing registering the trust or institution for a period of five years;

(B)        if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard.

Time Period within which order of registration should be passed [Section 12AB (3)]

Before expiry of the period of 6 months calculated from the end of the month in which the application was received.

Assessment Year from which Registration shall apply [First Proviso to Section 12A (2)]

It will apply from the date of the said adoption or modification.

Note.—            For renewal of registration alter the grant of registration for 5 years, see point (2) above.