*Deferment of provisions for new registration procedure of Charitable Trusts and Institutions u/s 12AB/10(23C)/80G:*

*Deferment of provisions for new registration procedure of Charitable Trusts and Institutions u/s 12AB/10(23C)/80G:*

~The Finance Act, 2020 prescribed a new electronic registration procedure for Charitable Trusts and Institutions under section 12AA/ 12AB / 10(23C)/ 80G.

~Originally was made applicable from 1st June 2020 : Subsequently extended to 1st October 2020 :Finally withdrawn from Finance Act, 2020 and made applicable from 1st April 2021. 

~ So, New Scheme of electronic Registration deferred and made applicable w.e.f. 1st April 2021. Old Scheme would continue uptill 31st March 2021.

*Amendments applicable from A.Y. 2020-21:*

~Audit Report in Form No. 10BB shall be uploaded one month prior to the due

date of submission of return of income. For A.Y. 2020-21 – uptill 31-12-2020.

~Income by way of Corpus Donation: By insertion of an Explanation, it has been clarified that w.e.f. A.Y. 2020-21, income of an entity covered by section 10(23C)(iv)/(v)/(vi)/(via) shall not include income in the form of voluntary contributions which are received with a specific direction that they shall form part of the corpus of the recipient.

~Corpus Donation given to other entities: Shall not be taken as application of income of the entity giving donation from the A.Y. 2020-21, if the following conditions are satisfied-

a) is given by an entity covered by section 10(23C)(iv)/(v)/(vi)/(via);

b) is given voluntarily with a specific direction that it shall form part of the

corpus of recipient; and

c) is given to an entity covered by section 10(23C)(iv)/(v)/(vi)/(via) or to a trust registered u/s. 12AA.

CA Amresh Vashisht