Mandatory Registrations for NGOs after 01.04.2021 – Form CSR-1, Section 80G and Section 12AB of Income Tax Act
As per Notification issued by Ministry of Corporate Affairs dated 22nd January 2021, it is mandatory for all NGO’s which wants to raise CSR Funding to enrol with MCA w.e.f 01/04/2021 to get CSR Funding. And Filing of Form CSR-1 has been started on MCA portal and a huge number of NGOs has already enrolled with MCA.
Following type of NGO’s are eligible to file Form CSR-1 on MCA Portal for getting CSR Funding:-
(a) a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company, or
(b) a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government; or
(c) any entity established under an Act of Parliament or a State legislature; or
(d) a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities
Following documents are required for filing Form CSR-1:-
- Copy of PAN Card of the NGO
- Mail ID and Mobile Number
- Details of Governing Body Members
- Copy of Registration Certificate
- Digital Signature of the Authorised Person with his PAN Number
Note: For Getting registration under Form CSR-1 with MCA, the NGO must have a valid registration under Section 80G and Section 12AA/12AB as on date of Filing application. If your NGO is new then firstly you have to Enrol under Section 12AB and Section 80G of Income Tax Act
Along with above compliance, Income Tax department has also made mandatory for all NGOs which are already registered under Section 12AA and Section 80G of Income Tax Act to re-register themselves with Income Tax Department in Form 10A for getting exemption benefits under Section 12AB and Section 80G of Income Tax Act. Further, new NGOs are also allowed to get register themselves under above sections.
CBDT has issued Income Tax (6th Amendment) Rules 2021 vide notification dated 26th March, 2021 in which they have enlisted the required documents for getting registration under -80G of Income Tax Act, 1961.
From 01.04.2021, all charitable institutions which are currently registered under section 12A/12AA are required to apply for a fresh registration under section 12AB. Further, all new entities which want exemption under section 11 and 12, are required to apply for registration under section 12AB.
- All existing NGOs (which are registered under section 12A/12AA) are required to get fresh registration U/s 12AB within 3 Months
- All other NGOs (which are not registered under Section 12A/12AA) may apply for registration U/s 12AB at least 1 month prior to the commencement of the previous year relevant to the assessment year from which registration is sought.
Note: In case of new registrations, provisional registration will be given for a period of 3 years from the assessment year from which registration is sought
Amendment has been made in Section 80G (5) of Income Tax Act, 1961 by Finance Act 2020, according to which, all entities which are
- Currently approved under this section, are required to apply for a fresh approval under the amended scheme of Section -80G
- And all new entities which want to apply for fresh registration under this section are required to apply for approval under the new scheme
Rule 11AA, prescribes the requirements for approval of institution of fund under clause (vi) of sub-section (5) of section 80G
(1) An application for approval under clause (vi) of sub-section (5) of section 80G, the institution or fund (hereinafter referred to as ‘the applicant’) shall be made in the following Form, namely:-
(a) Form No. 10A in case of application under clause (i) or clause (iv) of first proviso to subsection (5) of section 80G to the Principal Commissioner or Commissioner authorised by the Board; or
(b) Form No. 10AB in case of application under clause (ii) or clause (ii) of first proviso to subsection (5) of section 80G to the Principal Commissioner or Commissioner authorised under the said proviso.
The application under sub-rule (1) shall be accompanied by the following documents, as required by Form Nos. 10A or 10AB, as the case may be, namely:—
(a) where the applicant is created, or established, under an instrument, self-certified copy of the instrument;
(b) where the applicant is created, or established, otherwise than under an instrument, self-certified copy of the document evidencing the creation or establishment of the applicant;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
(d) self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010(42 of 2010), if the applicant is registered under such Act;
(e) self-certified copy of existing order granting registration under clause (vi) of subsection (5) of section 80G;
(f) self-certified copy of order of rejection of application for grant of approval under clause (vi) of sub-section (5) of section 80G, if any;
(g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;
(h) note on the activities of the applicant.
On receipt of an application in Form No.10A, the Principal Commissioner or Commissioner, authorised by the Board shall pass an order in writing granting approval under clause (i) or (iii) of the second proviso read with third proviso of sub-section (5) of section 80G in form 10AC and issue a sixteen-digit alphanumeric Unique Registration Number (URN) to the applicants making application as per clause (a) of the sub-rule (1)