The Tax Publishers

Finance Bill, 2023--Charitable Trust

Provisional Registration Vis-a-Vis Regular Registration--Amendment By Finance Bill, 2023

CA. Nisha Bhandari

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, has amended the scheme of registration or approval of the trusts and institutions under both the regimes and also for purpose of Section 80G. But while implementing the new provisions it is noticed that certain difficulties are being faced by the trusts and institutions. The Finance Bill 2023, therefore proposes certain amendments to remove these difficulties. The learned author analyses the proposals relating to combining of provisional and regular registration in certain cases.

1. Application for registration/approval when required to be filed

As provided under clause (ac) of Section 12A(1), a trust or institution is required to apply for registration as mentioned hereunder for availing of exemption under Section 11 and 12-

(i) where the trust or institution is registered under Section 12A [as it stood immediately before its amendment by the Finance (No. 2) Act, 1996] or under Section 12AA, [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020] within three months from the 1st day of April, 2021 [Extended upto 31-3-2022 vide Circular No. 16/2021, dt. 29-8-2021];

(ii) where the trust or institution is registered under Section 12AB and the period of the said registration is due to expire, at least six months prior to expiry of the said period;

(iii) where the trust or institution has been provisionally registered under Section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier;

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