Are not the Trusts Perpetual anymore?

According to Section 12A of the Income-tax Act 1961, the trusts were registered for perpetuity, but after the enforcement of new rules accompanied in the Finance Act 2020, effective from 01.04.2021, the newly incorporated trusts shall be registered under the new procedure mentioned in section 12AB and the existing trusts which were already registered under section 12A or 12AA or 10(23C) and having 80G certificate must apply for re-approval/revalidation of their registration.

According, to Section 12AC, a new procedure for registration of trusts is mentioned:

  • REGISTRATION OF TRUSTS FOR FIRST TIME
  1. Provisional Registration –
  2. Time Frame: Application for seeking provisional registration is at least one month prior to the commencement of the previous year relevant to assessment year from which the said registration is sought.
  3. Validity: The registration shall be valid for 3 years.
  • Forms: Form 10 A
  1. Conversion of Provisional to Final Registration –
  2. Time Frame: At least 6 months prior to the expiry of period of the provisional registration (provisional registration is valid for three years) OR

Within 6 months from the commencement of the activities.

  1. Validity: The registration shall be valid for 5 years.
  • Forms: Form 10AB
  • RE-REGISTRATION OF EXISTING TRUSTS:
  1. Validity: The registration shall remain valid for 5 years. (3 years in case of provisional registration)
  2. Forms:
  3. Form 10A: (Last date of filling – 31.08.2021)
  • Application for revalidation of registration/approval for existing organizations registered / approved under section 12A /12AA /80G.
  • Application for provisional registrations/approval under section 12AB/80G
  1. Form 10AB: (Last date of filling – 31.08.2021) (before 6 months of expiry of previous registration)
  • Conversion of provisional registration into regular registration
  • Renewal of registration/approval after five years
  • Activating inoperative registration under section 10(23C)/10(46)
  • Re-registration for modification of objects for entities registered u/s 12

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