Complete Guide to Form 10A and 10AB–

New Compliance Framework for 12AB Registration

Introduction

Charitable trusts, societies, and Section 8 companies in India rely on tax exemptions under the Income Tax Act, 1961, to maximize their resources for social good. The Finance Act, 2020, introduced Section 12AB, replacing Sections 12A and 12AA, to streamline the registration process for NGOs seeking tax exemptions. Forms 10A and 10AB are central to this new framework, enabling NGOs to obtain and maintain registration under Section 12AB, which is essential for claiming exemptions under Sections 11, 12, 80G, and 10(23C). This section provides a comprehensive exploration of the procedural intricacies, eligibility criteria, documentation requirements, and practical implications of these forms, ensuring NGOs can comply with the law and sustain their operations.

Legal Framework

Section 12AB, effective from April 1, 2021, governs the registration of charitable trusts and institutions, as mandated by the Finance Act, 2020. Rule 17A of the Income Tax Rules, 1962, prescribes Forms 10A and 10AB for registration and renewal, respectively, streamlining the application process. The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, deferred the implementation to April 1, 2021, in response to the economic disruptions caused by the COVID-19 pandemic. The framework introduces two types of registration: – Provisional Registration: Valid for three years, designed for new NGOs to establish operations. – Permanent Registration: Valid for five years, renewable, for existing NGOs or those transitioning from provisional registration.

The Central Board of Direct Taxes (CBDT) oversees compliance through the Income Tax Department’s e-filing portal, ensuring transparency and efficiency.

Form 10A: Initial Registration

Form 10A is the application form for initial registration under Section 12AB, applicable in two primary scenarios:

• New Trusts or Institutions: Newly established NGOs seeking registration for the first time must file Form 10A to obtain provisional registration, valid for three years, allowing them to commence charitable activities and claim tax exemptions.

• Existing Trusts or Institutions: NGOs previously registered under Sections 12A or 12AA as of March 31, 2021, must file Form 10A to migrate to the new Section 12AB framework, ensuring continuity of tax exemptions.

Eligibility Criteria:

• The organization must be legally registered as a trust under the Indian Trusts Act, 1882, a society under the Societies Registration Act, 1860, or a Section 8 company under the Companies Act, 2013.

• It must have a defined charitable purpose, as per Section 2(15), such as relief of the poor, education, medical relief, or advancement of general public utility.

• For new NGOs, the application must be filed at least one month prior to the commencement of the financial year in which registration is sought.

• Existing NGOs must ensure their activities align with their registered objectives to qualify for migration.

Required Documents:

• Trust deed, society registration certificate, or Section 8 company incorporation certificate.

• PAN card of the organization and its trustees or governing body members.

• Address proof (e.g., rent agreement, utility bill, or property deed).

• List of trustees or governing body members with their PAN and Aadhaar numbers.

• Audited financial statements for the last three years (for existing NGOs migrating to Section 12AB).

• Activity report detailing past or planned charitable activities, such as project descriptions or impact assessments.

Filing Process:

1. Access the e-Filing Portal: Log in to the Income Tax Department’s e-filing portal (https://www.incometaxindia.gov.in).
2. Select Form 10A: Navigate to “e-File” > “Income Tax Forms” > “Form 10A.”
3. Enter Details: Provide organizational details, including legal status (trust, society, or company), registration status, charitable objectives, and financial information.
4. Upload Documents: Attach all required documents in PDF format, ensuring clarity and completeness.
5. Verify and Submit: Use a digital signature (mandatory for audited entities) or electronic verification code (EVC) to submit the form.
6. Processing: The Principal Commissioner of Income Tax (PCIT) or Commissioner of Income Tax (CIT) reviews the application and issues an order in Form 10AC within six months, granting provisional registration or rejecting the application with reasons.

Example: “Bright Future Trust,” a new NGO established in August 2024 to provide free education to underprivileged children, files Form 10A on February 1, 2025, submitting its trust deed, PAN card, and planned activity report. On July 15, 2025, it receives provisional registration in Form 10AC, valid until March 31, 2028, enabling it to claim tax exemptions for its initial three years of operation.

Form 10AB: Renewal and Conversion

Form 10AB is used for two purposes:

• Conversion to Permanent Registration: NGOs with provisional registration must file Form 10AB at least six months before the expiry of the three-year provisional period or within six months of commencing charitable activities to convert to permanent registration, valid for five years.

• Renewal of Permanent Registration: NGOs with permanent registration must file Form 10AB at least six months before the expiry of the five-year period to renew their registration.

Eligibility Criteria:

• NGOs must have complied with conditions of their existing registration, such as spending 85

• They must provide evidence of ongoing charitable activities aligned with their objectives.

Required Documents:

1. Current registration certificate (provisional or permanent).
2. Audited financial statements for the last three years, certified by a chartered accountant.
3. Utilization certificates for funds received, such as grants or donations.
4. Detailed activity reports showcasing charitable programs and their impact.

Filing Process:

1. Access the e-Filing Portal: Log in to the Income Tax portal (https://www.incometaxindia.gov.in).
2. Select Form 10AB: Navigate to “e-File” > “Income Tax Forms” > “Form 10AB.”
3. Enter Details: Update organizational details, financial statements, and activity reports.
4. Upload Documents: Attach required documents in PDF format.
5. Verify and Submit: Submit the form using a digital signature or EVC.
6. Processing: The PCIT/CIT reviews the application and issues an order in Form 10AD within six months, granting permanent registration or renewal.

Example: “Bright Future Trust,” holding provisional registration until March 31, 2028, files Form 10AB on September 1, 2027, to convert to permanent registration. It submits audited financial statements for FY 2024-25 to FY 2026-27 and an activity report detailing 500 students educated. On February 15, 2028, it receives permanent registration in Form 10AD, valid until February 14, 2033.

Provisional vs. Permanent Registration

• Provisional Registration: Designed for new NGOs, it offers a three-year window to establish operations and compliance. It allows tax exemptions under Sections 11 and 12 but requires conversion to permanent registration.

• Permanent Registration: Provides a five-year validity, renewable via Form 10AB. It offers long-term stability and eligibility for donor benefits under Section 80G.

Table 1: Provisional vs. Permanent Registration

Pros and Cons

Pros:

• Streamlined online process reduces bureaucratic delays.
• Clear timelines for processing (six months) ensure predictability.
• Supports tax exemptions under Sections 11, 12, 80G, and 10(23C), enhancing financial capacity.
• Provisional registration enables new NGOs to start operations quickly.

Cons:

• Complex documentation requirements may overwhelm small NGOs.
• Strict deadlines for filing Forms 10A and 10AB risk lapses if missed.
• Potential for rejection due to non-compliance or incomplete submissions.
• Ongoing compliance, such as annual audits, adds administrative burden.

Practical Challenges

• Documentation Complexity: Small NGOs may struggle to compile audited financials or activity reports, especially if resources are limited.
• Technical Issues: The e-filing portal may face glitches, requiring NGOs to seek professional assistance.
• Rejection Risks: Errors in applications, such as mismatched objectives or incomplete documents, can lead to rejection, delaying operations.

Reforms and Solutions

• Simplified Documentation: Introduce templates or checklists for small NGOs to streamline document preparation.
• Extended Deadlines: Provide flexibility for NGOs facing genuine delays, such as those in remote areas.
• Technical Support: Enhance the e-filing portal with user guides and helplines to address technical issues.
• Awareness Campaigns: Conduct workshops to educate NGOs on the new framework and compliance requirements.

Recent Updates (2025)

As of June 8, 2025, the CBDT has not announced new extensions for Form 10AB filings beyond the September 30, 2022, deadline provided for certain cases under Circular No. 7/2022. NGOs with provisional registrations expiring in 2025 must file Form 10AB six months in advance to avoid lapses. The Finance Act, 2025, has not introduced amendments to Section 12AB, but increased scrutiny of NGO compliance underscores the importance of timely filings.

Conclusion

Forms 10A and 10AB are pivotal for NGOs to secure and maintain tax-exempt status under Section 12AB, enabling them to maximize resources for charitable activities. Proper documentation, adherence to deadlines, and robust compliance practices are essential to navigate this framework successfully, ensuring NGOs can sustain their operations and impact