Important Update on Filing Income Tax Forms for Trusts, Institutions and Funds

Trust who wishes to claim exemption u/s 11 and u/s 12 are mandatorily required to obtain registration under the Income Tax Act in by filing Form No. 10A and Form 10AB.

The CBDT has announced a new extension for filing Form 10A and Form 10AB up to June 30, 2024. This decision comes after previous extensions, the last of which was set to expire on September 30, 2023 (Circular No. 06/2023).

Key Points to Note:

• Extension of Deadline: The deadline for filing Form 10A and Form 10AB has been extended upto 30.06.2024 to provide relief to taxpayers facing genuine difficulties (Circular No. 07/2024).

• For Previously Registered Entities: Trusts, institutions, or funds that missed filing Form 10A for the assessment year 2022-23 can correct their status. If they had applied as a new entity and received Form 10AC, they can now revert to their original status by surrendering Form 10AC and reapplying using Form 10A by the new deadline i.e. by June 30, 2024.

• For Rejected Re-registration Applications: If any re-registration applications were rejected due to late filing or incorrect section codes, entities could now reapply using Form 10AB by June 30, 2024.

• How to File: Applications must be submitted electronically through the Income Tax Department's e-filing portal.

For more details, please refer the Circular No. 07/2024.

Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.