The Central Board of Direct Taxes is a statutory body that derives its authority from the Central Board of Revenues Act, of 1963. For the purpose of claiming tax exemptions, a non-profit organization can be registered under Section 12A of the Income Tax Act, 1961 (“Act”). The procedure of registration and the conditions to be fulfilled are mentioned in Sections 12AA and 12AB of the Act. A non-profit organization is defined under Section 8 of the Companies Act, 2013. The procedural requirements for the abovementioned registration mandate the filing of Form 10A.
The Central Board of Direct Taxes, by virtue of Circular No. 22/2022, has further extended the date of filing Form 10A, from 31/03/2022 to 25/11/2022. In addition to the above, a trust or an institution that has been in operation for a significant period of time but has not obtained registration under section 12A of the Act is required to use the Form. 10A for the same.
Section 12AB of the Act aims at promoting welfare activities in society and also to not claim taxes for those activities that the government ought to undertake. This move has been condoned by the government, in view of the representations made to CBDT and to avoid hassles for genuine taxpayers.
Thus, the circular issued by CBDT envisages the mandatory filing of Form 10A and aims at easing out the hassles encountered by these organizations while registering themselves under Section 12A of the Act.