I have a query regarding 80G(5)(iii) i alrady have a provisional registration upto AY 2024-25.
Can we file Form 10AB for permanent registration of 80G and 12A after 6 months of commencing activities? or we required to file again form 10A? plz advise we are filed the Form 10AB now office is rasing the query that as the six months have been passed you cant file the Form 10AB for 80G(5)(iii) Officer asking for the maintability / alloawibility of the Application
10 July 2024
The query seems to be about the process of obtaining permanent registration under Section 80G and Section 12A of the Income Tax Act for a charitable organization. Here’s a structured response to clarify the situation:
1. **Provisional Registration and Form 10AB**: - You have mentioned that you already have provisional registration under Section 80G up to AY 2024-25. This provisional registration allows donors to avail tax benefits for donations made to your organization. - To convert this provisional registration into permanent registration, you need to file Form 10AB with the Income Tax Department.
2. **Time Frame for Filing Form 10AB**: - As per the Income Tax Rules, after receiving provisional registration, you are required to commence charitable activities within six months. Subsequently, you can file Form 10AB for permanent registration. - If the six-month period has passed since you commenced activities and you have not yet filed Form 10AB, there might be queries or concerns raised by the tax authorities regarding the delay.
3. **Form 10A vs Form 10AB**: - Form 10A is used for applying for registration under Section 12A (which grants exemption on income derived from property held for charitable purposes) and Section 80G (which grants deduction on donations to charitable institutions). - Form 10AB is used specifically for converting provisional registration under Section 80G into permanent registration.
4. **Query from Tax Office**: - If the tax office is questioning the maintainability or allowance of your application for Form 10AB after the six-month period from commencement of activities has passed, they may be concerned about the timing of your application. - It’s important to respond to their queries with clarity and provide any necessary explanations or documentation to support your application.
5. **Advice**: - Review the specific guidelines and requirements for Form 10AB as per the Income Tax Rules. - If the tax office is raising queries, ensure you address them comprehensively, explaining the circumstances and any reasons for the delay in filing Form 10AB. - Consult with a qualified tax advisor or chartered accountant who specializes in nonprofit organizations and tax compliance to guide you through the process and help prepare a robust response to the tax office.
In summary, while Form 10AB is typically used to convert provisional registration under Section 80G into permanent registration, the timing of its submission after the initial six-month period of commencing activities can be a critical factor. Ensure you understand the requirements and address any queries raised by the tax office promptly and thoroughly.
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