ICAI’s Handbook on ‘Registration of Charitable Institutions for IT Exemption’

ICAI has released the Handbook on ‘Registration of Charitable & Religious Institutions for Income tax Exemption’ which explains the new IT provisions/ procedures for registration and renewal applicable for trusts and charitable institutions, to avail the benefit of exemption, for guidance of Members.

In the year 2020, substantial changes have been made in the taxation laws pertaining to Trusts & Charitable Institutions. The Finance Act 2020 has enacted a new process for registration and fresh/ re-registration of concerned assessees by amending section 12A and 80G of the Income-tax Act, 1961 w.e.f. 01/04/2021. In fact, each charitable institution seeking exemption from payment of income tax is required to obtain fresh registration/ approval from the Income tax Department.

To elaborate the recent changes made in this regard and to provide proper guidance to the members, this publication would prove to be very useful. This publication covers the law relating to exemption and registration, new provisions, new registration process, Procedure for revival of existing inoperative Trusts, FAQs etc. for enabling the members to better understand the said provisions.

This Handbook covers registration and renewal of registration under the new section 12AB of the Act for charitable institutions seeking to enjoy tax exemption and for eligibility for deduction under section 80G for donations received. Sections 10(23C) of the Act also affords tax exemption for certain institutions.

ICAI’s Handbook on ‘Registration of Charitable & Religious Institutions for Income tax Exemption’ (First Edition: June 2021)

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