Form 10 A not filed for A.Y 2022-23

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CMA M.Keerthi chandra (Querist)
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09 February 2023 In case of a trust, for the A.Y 2022-23, Form 10 AB was (Renewal)filed for a Trust BY MISTAKE with out filing form 10A (Provisional). Now the question what is the fate of Assessment of the trust for the A.Y 2022-23
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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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07 July 2024 In the scenario where Form 10AB (Renewal) was filed for a trust without filing Form 10A (Provisional) first, it's important to understand the implications for the assessment of the trust for the Assessment Year (AY) 2022-23:

1. **Provisional Registration (Form 10A)**: Form 10A is typically filed for provisional registration of a trust under Section 12A or Section 12AA of the Income Tax Act, depending on whether it is a new trust seeking registration or an existing trust seeking provisional registration before filing Form 10AB for renewal.

2. **Impact on Assessment**: Without the provisional registration (Form 10A), the trust may face challenges during the assessment process for AY 2022-23. The Income Tax Department may require the trust to provide proof of valid registration or provisional registration under Section 12A/12AA to claim exemptions under Sections 11 and 12 of the Income Tax Act.

3. **Rectification Required**: The trust should rectify the situation by immediately filing Form 10A (Provisional) to obtain provisional registration if it hasn’t already been granted. This will establish the trust’s eligibility for tax exemptions as per the provisions of Sections 11 and 12.

4. **Communicate with Income Tax Department**: It would be prudent to communicate with the Income Tax Department or consult a tax professional to explain the error and seek guidance on how to proceed. Providing correct documentation and rectifying the filing sequence promptly can mitigate potential issues during the assessment.

5. **Future Compliance**: Ensure that future filings, including annual renewal with Form 10AB, are done correctly and in compliance with the Income Tax Act to avoid similar issues in subsequent assessment years.

In summary, filing Form 10AB (Renewal) without prior filing of Form 10A (Provisional) could affect the assessment process for AY 2022-23, potentially requiring the trust to rectify the situation by obtaining provisional registration promptly and communicating with tax authorities as needed.