Amendments in Provisions of Charitable Trusts and Institutions under the Income Tax Act, 1961

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Amendments in Provisions of
Charitable Trusts Institutions Under INCOME
TAX ACT, 1961
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SUMMARY OF MAJOR AMENDMENTS

• Re-registration and Re approval of entities
  claiming exemption under section 11, 10(23C) and
  80G of the
• Income Tax Act -
• All existing Charitable Trusts and Institutions
  registered/approved under Section 12A (before
  1996), Section 12AA (after 1996), Section
  10(23C), and section 80 G or notification issued
  under section 35 of the Act shall be
• required to re-apply to revalidate their existing
  registrations or approvals.
• Concept of Provisional Registration -
• All pending applications under the current
  provisions of Sections
• 12AA, 10(23C), 35, and 80G shall be deemed to
  have been made under the new provisions and
  shall be processed according to the new
  procedure.
• Right to claim the dual exemption is not
  permissible -
• Presently, an eligible assessee can possess
  registrations as a charitable trust and exempt
  institution simultaneously. By doing so, even if
  the condition under section 13 of the Income Tax
  Act is
• violated, such assessee has the option to avail
  benefit under section 10(23C) of the Income Tax
  Act.
• Tax on accreted Income
• In case, the application for re-registration or
  re-approval of existing exemptions or
  registration is not submitted by the existing
  charitable trusts and institutions, then the
  earlier granted
• registrations shall stand canceled on the expiry
  of three months after 31st December 2020.

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