Form 10A

In India, charitable trusts, religious trusts, educational institutions and hospitals must get specific registrations under Indian tax laws. These registrations encompass Section 12A, 10(23C) or Section 80G of the Income Tax Act. Trusts and institutions seeking these registrations must submit Form 10A of Income tax act accordingly.

What Is Form 10A?

Form 10A of Income tax act is essential for charitable or religious trusts in India seeking re registration under Section 12AB of the Income Tax Act. This form combines the functionalities of previous forms specifically Form 10 and Form 10G. It consists of a comprehensive set of twenty one points that need to be completed for the re registration process.

The form caters to both temporary and permanent registrations. Permanent registration once approved remains valid for a period of five years. Trusts seeking re registration must ensure they submit their application for renewal at least six months before the expiry date of their current registration to avoid any lapse in their status. This ensures the continuity of their recognition under the relevant charitable or religious trust laws in India.

Who Needs To File Form 10A?

1. Already Registered Organizations Before April 1, 2021

Organizations previously registered under old sections 12A or 12AA of the Income Tax Act need to submit Form No. Form 10A of Income tax act is used to re register under the new Section 12AB. It is not used for initial registration.

2. Existing Unregistered Organizations Before April 1, 2021

Organizations that have already been doing charitable activities but were not registered under old sections 12A or 12AA before April 1, 2021 must apply for fresh registration using Form No. 10A Income tax act under the new Section 12AB. During this process, organizations can obtain provisional registration for up to three years.

3. Newly Established Organizations

New organizations must submit Form 10A to apply for provisional registration with the income tax authority. Registration is necessary for them to qualify for tax exemptions under Sections 11 and 12 of the Income Tax Act.

Why Is Form 10A Important?

• Form 10A is used in specific situations for trusts or institutions related to taxation laws. If a trust was already registered or approved before April 1, 2021 and now needs to re register under a different section of the law (section 12AB) they use Form 10A Income tax.
• For new trusts or institutions that have just been set up and need to register for the first time under section 12A they should use a different form 10A  income tax as well.
• If a trust has been operating for some time but has never registered under section 12A they also need to use Form 10A for their initial registration.
• It's important to note that Form 10A can be used only once during the trust's existence for these purposes. Any future renewals or changes will require a different form Form 10AB.
   

What Are The Eligibility Criteria For Filing Form 10A?

Form 10A is primarily used for applying for registration of a trust, institution or any other similar entity under section 12A or section 10(23C) of the Income Tax Act, 1961 in India. Here are the eligibility criteria for filing Form 10A.

1. Form 10A can be filed by entities such as trusts, institutions, funds, universities, hospitals, etc seeking registration under section 12A or section 10(23C) of the Income Tax Act.

2. Entity must be engaged in activities that are charitable or religious in nature or it should be involved in advancement of any other object of general public utility.

3. Entity must comply with all legal requirements and have its accounts audited in accordance with the Income Tax rules.

5. Entity must ensure it has complied with all income tax filings and other statutory obligations before applying for registration.

6. Activities and the objects of the entity must be genuine and should not be for the benefit of any particular religious community or caste.

7. Application in Form 10A is scrutinized by the Income Tax Department and approval is granted based on the satisfaction that the entity meets all the conditions laid down under section 12A or section 10(23C).

What Documents Are Required To File Form 10A?

1. Memorandum of Association (MoA) or Trust Deed: This is the document that outlines the objectives and rules governing the entity like a trust or institution. You need to submit 2 copies of this document.

2. Certificate of Registration: If your entity is registered with any authority like Registrar of Trusts you must provide a copy of the registration certificate.

3. Documents of any post registration changes: If there have been any changes to the MoA or Trust Deed after registration provide documents reflecting those changes.

4. Existing registration certificates of Section 12A, 10(23C) and 80G: If your entity already has these registrations provide copies of the certificates.

5. Previous rejection orders under Sec 12A, 10(23C) and 80G: If your application for these registrations was previously rejected provide copies of the rejection orders.

6. Foreign Contribution (Regulation) Act (FCRA) certificate if any: If your entity has an FCRA certificate allowing it to receive foreign contributions provide a copy.

7. Proof of annual accounts for 3 financial years or since the year of incorporation: Provide documents showing the financial accounts of your entity for the last 3 financial years or since its incorporation whichever is applicable.

Information Required To Fill Form 10A

1. Name of the organization: Provide the official name of your trust, NGO or institution.

2. Type of trust: Specify whether it is a religious or charitable institution.

3. Contact number of the managing trustee: Enter the phone number of the main trustee responsible for managing the affairs of the organization.

4. PAN card number of the trust management: Provide the PAN card number of the trustees or persons managing the trust.

5. Aadhaar number of trust management: Give the Aadhaar number of the trustees or persons managing the trust.

6. Digital signature of one trustee: Ensure that at least one trustee digitally signs the form.

7. Activities performed by the institution or trust: Describe the main activities and initiatives undertaken by your organization.

8. Goal of establishing the trust/ NGO/ institution: Explain the purpose or objective behind setting up your trust, NGO or institution. This could include goals like providing education to underprivileged children, healthcare services to the needy promoting art and culture, etc.

Steps To Fill Out Form 10A?

1. Go to www.incometax.gov.in

2. Access e Filing Section: Click on e File option.

3. Navigate to Income Tax Forms: Select Income Tax Forms from the menu.

4. Choose File Income Tax Forms: Click on this option to proceed.

5. Select Applicant Category: Choose Persons not dependent on any source of income.

6. Find and select Form 10A under the Tax Exemption and Relief section to proceed with your filing.

7. Initiate Filing: Click on File Now for Form 10A.

8. Complete Form Details: Fill in all required details in the form and attach necessary documents.

9. Choose the relevant Assessment Year for which you are applying for tax exemption using Form 10A.

10. Proceed to the next step by clicking Continue after verifying all entered information.

11. Start Form Submission: Press Let’s get started to proceed.

12. Submit Form Electronically: Attach a digital signature of a trustee if applicable and use the e verification code to finalize the submission.

Penalties For Incorrect Filing Of Form 10B

1. Loss of Tax Exemption: If a trust or institution does not file Form 10A on time it may lose its eligibility for income tax exemption under Section 12A. It means the income of the trust or institution will be subject to taxation.

2. Penalty for Late Filing: Income Tax Department may impose penalties for late filing or non filing of 10A form of income tax. Penalty amount can vary based on the specifics of the delay and the discretion of the assessing officer.

3. Interest on Unpaid Taxes: If the trust or institution is required to pay taxes due to the loss of tax exemption interest may be charged on the unpaid taxes from the due date until the date of payment.

4. Difficulty in Obtaining Re registration: Delayed filing may complicate the process of obtaining re registration in the future as the trust or institution may be required to provide additional documentation and justifications for the delay.

5. Impact on Donor Contributions: Non compliance can affect donor confidence as contributions to non compliant trusts or institutions may not be eligible for tax deductions under Section 80G leading to a decrease in donations.

Conclusion

When you submit Form 10A commissioner will review your application and accompanying documents. If more information is required additional documents may be requested. Just submitting 10A form of Income tax act doesn't guarantee your organization or trust will be registered under Section 12A. Commissioner must be satisfied with your application and documents. Once approved your organization or trust will be exempt from income tax under Section 12A.