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Amendments of rules related to registration, approval & activities of institutions, trusts & funds

Updated: Jul 3, 2023

Recently the CBDT had made significant amendments in Income Tax Rules, 1962 by 11th Amendment Rules, 2023. Read more to understand what are the areas affected by this amendment. Keep reading to know more………

Recently the CBDT had made significant amendments in Income Tax Rules, 1962 by 11th Amendment Rules, 2023. Read more to understand what are the areas affected by this amendment. Keep reading to know more………
Amendments of rules related to registration, approval & activities of institutions, trusts & funds

The CBDT amended the Income Tax Rules, 1962, Rules 2C, 11AA, and 17A, as well as Forms 10A, Form 10AB, Form AC, Form 10B, Form 10BB, by Notification No. 45/2023 dated June 23, 2023, to incorporate the changes made by the Finance Act, 2023 regarding charitable/religious trusts or institutions registered/approved under Sections 10(23C), 80G, and 12A of the Income Tax Act, 1961.


So if you have a charitable/religious trusts or institutions registered/approved under Sections 10(23C), 80G, and 12A of the Income Tax Act, 1961 under your management, this blog is for you.


These adjustments include tweaks to the sub-rules, clause substitutions, and the addition of new forms. There have been significant changes made to the regulations governing the registration, approval, and operations of institutions, trusts, and funds. These revisions will take effect from the 1st of October 2023.


To keep things simple we have first provided a brief description of the Forms & Rules affected by the amendment, the amendment notification is provided at the end of this blog.


Brief about Form No. 10A, Form No. 10AB, Form No. 10AC, Form No. 10B, and Form No. 10BB:

Under the Income-Tax Rules, 1962, these forms are used for various purposes: -


Form 10A: Form 10A is used for application for registration of charitable or religious trusts, under section 12A and 12AA of the Income Tax Act.


Form 10AB: Form 10AB is used for the application for approval of the institution or fund under section 80G(5)(vi) of the Income Tax Act.


Form 10AC: Form 10AC is used for the application for approval of the institution or fund under section 80G(5)(vi) of the Income Tax Act in cases where an existing approval is already in place.


Form 10B: Form 10B is used for the audit report under section 12A(b) of the Income Tax Act, for charitable or religious trusts claiming exemption.


Form 10BB: Form 10BB is used for the audit report under section 10(23C)(vi) and section 10(23C)(via) of the Income Tax Act, for scientific research associations, universities, and other educational institutions claiming exemption.


Brief about Income Tax Rule 2C, Rule 11AA and Rule 17A of Income-Tax Rules, 1962 :


Rule 17A: An application for registration of a charitable or religious trust or any institution under clause (ac) of sub – section (1) of section 12A shall be made in Form 10A or Form 10AB as per the case.


Rule 11AA: Application for approval of any institution or fund under clause (vi) of sub-section (5) of section 80G.


Rule 2C: Application for the purpose of grant of approval of a fund or trust or any institution or university or any hospital or other medical institution under clause (i) or clause (ii) or clause (iii) or clause (iv) of first proviso to clause (23C) of Section 10 under Income-tax Rules, 1962.


For accessing the complete notification click here


We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.


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