Form No. 10A: Trust Re-registration Process Explained

Form 10A is the application form for re-registering trusts (religious, charitable or institutions) already registered under section 12A, 12AA, 10(23), 80G and for the provisional registration of new trusts  (religious, charitable or institutions) under the Income Tax Act, 1961. This form provides necessary information to the Income Tax department about the compliance with the provisions of the Income Tax Act, 1961 and genuineness of an organisation’s activity. 

Earlier, section 12AA governed the registration procedure under the Income Tax, 1961, for claiming exemptions under sections 11 and 12. The Finance Act of 2020 introduced the new section 12AB to provide the procedure of re-registration or fresh registration for religious or charitable trusts or institutions to avail of tax exemptions under sections 11 and 12. The Finance Act of 2021 made further amendments to section 12AB. After 1 April 2021, section 12AA became inoperative. 

What is Form 10A?

Form 10A is an application submitted to the Income Tax Department to re-register and provisionally register religious or charitable trusts or institutions under section 12A, 12AA, 10(23), 80G. This form aims to inform the Income Tax Department about compliance with the provisions of the Income Tax Act and the genuineness of activities carried out by these trusts. Earlier, the procedure of registration of religious and charitable trusts was elaborated under the provisions of section 12AA of the Income Tax Act, 1961.

The Finance Act 2020 introduced section 12AB, which outlines the procedure carried out by the Income Tax Department to register religious or charitable trusts or institutions. All the existing religious or charitable trusts or institutions must fill Form 10A  to re-register under section 12AB. The deadline to submit Form 10A under section 12AB was 30 June 2024.  After getting re-registered, these trusts can avail themselves of the benefit of tax exemption under sections 11 and 12.

Religious or charitable trusts or institutions must submit Form 10A to apply for provisional registration or re-registration under section 12AB. However, the deadline for re-registering the trusts through Form 10A was 30 June 2024, and it has passed. Presently, the re-registration after the provisional registration or renewal of the registration is done by filing Form 10AB. The initial registration (provisional registration) for the new trusts (Religious or charitable trusts or institutions) is done through Form 10A. 

Under Budget 2025, it was proposed to amend subsection 4 of section 12AB, stating that the incomplete application by trusts or institutions shall not be treated as a specified violation. This is done to prevent the application from being rejected because of an incomplete application. The validity period of registration for trusts or institutions with income less than Rs. 5 crore without applying the exemption under section 11 and section 12 increased from 5 years to 10 years. Section 13 says that the exemptions of section 11 and section 12 do not apply to trusts or institutions whose income from charity or property benefits certain people. Certain people include the person who donates more than Rs. 1 lakh in a year or Rs. 10 lakh in total over time. Relative or business of the above-mentioned people are not covered under ‘certain people’.

Eligible Applicants of Form 10A

The eligible applicants of Form 10A are as follows:

• Organisations previously registered under section 12A or section 12AA before 1 April 2021 for application of Re-registration under section 12AB. (Now, Form 10AB is applicable for renewal of registration or renewal of provisional registration)
• Existing unregistered organisations that were not registered with the  Income Tax Department under any section 12A or section 12AA before 1 April 2021.
• Newly established organisations that want to avail of the tax exemption of section 11 and section 12

Types of Trust

Private Trusts

Private trusrts are created for the benefit of small group of individuals like family or friends. The beneficiaries under private trusts are known as Indentifiables. Private trusts are governed by the Indian Trust Act, 1882.

Public Trusts

Public trusts are created to benefit the public at large or the specific section of public. These trusts are created with the motive of seving religious, charitable or educational purpose. Public trusts are governed by the state specific legislation.

Parties involved in a Trust Document

• Author/Settlor/Trustor/Donor: the individual seeking to transfer their assets and entrusting another person to establish the trust.
• Trustee: The person who agrees to assume the responsibility of establishing the trust.
• Beneficiary: The individual who is set to receive benefits from the trust in the near future.

Trusts can avail of income tax exemptions and benefits under Section 12A, Section 12AA, and Section 80G of the ITA. Section 12A applies to both public charitable as well as public religious trusts (excluding trust/fund whose purpose is to benefit a particular community, caste or section).

The old Form No. 10 and Form No. 10G for Section 80G registration have been abolished. A new Form No. 10A with 21 points has been introduced, which is to be used primarily for two purposes.

In the case of approved trusts, Form No. 10A is to be used for making an application for re-registration.

Further, newly created trusts can use Form No. 10A for making an application for provisional registration.

A trust already registered, as per the earlier IT law, before April 1, 2021, the time limit is June 30, 2021. This is  three months from which the provision came into effect. 

In case of a trust that wishes to apply for a fresh registration or approval under the new IT law, the time limit is one month prior to the commencement of the previous year relevant to the assessment year from which the new approval is sought. 

A newly created trust will be provided with a provisional registration, which will be valid for three years. Also, such trust needs to apply for permanent registration six months prior to completion of this three-year validity period or within six months of commencement of activities, whichever is earlier. For example, a newly-formed trust received certification on 1st April 2021 and commenced activities on 1st June 2021. The provisional registration will remain valid until 1st April 2024, but the trust would be required to apply for final registration before 30th November 2021(within six months of commencement of activities) through Form 10AB.

On the other hand, for the approved trusts, the permanent registration, once granted, will be valid for five years. Such trusts need to apply for renewal of registration six months before completing this five-year validity period.

Types of Registration via Form 10A

There are two major types of applications:

Who is Eligible to Create a Trust?

Trust can be created by:

Any individual or entity capable of entering into contracts, such as individuals, Associations of Persons (AOPs), Hindu Undivided Families (HUFs), businesses, and so on.

If a trust is being established for or on behalf of a minor, it is essential to obtain the consent of a Principal Civil Court with original jurisdiction.

Additionally, the ability to create a trust depends on the prevailing laws at the time and the extent to which the trust's creator intends to distribute their assets.

Why is Trust Registration Necessary?

• Legal Recognition: Registering the trust, grants legal recognition, establishing it as a distinct legal entity. This recognition is crucial for facilitating the trust's various activities.
• Compliance with Law: By registering the trust, it guarantees adherence to all the rules and regulations set forth by the Government, ensuring the trust operates in compliance with the law.
• Appropriate Computation of Tax Liability: Trusts are liable to pay taxes, and registering the trust plays a crucial role in determining its tax obligations. By undergoing registration, the trust's tax liability can be properly assessed and determined.
• Enhanced Transparency: Through the process of trust registration, the activities and financial transactions of the trust are made public. This fosters transparency, accountability, and ensures that the trusts are utilized for their intended purpose.
• Evidence of Ownership: Registering the trust provides tangible evidence of ownership over the trust property, which is essential for trustees to effectively administer and manage the property. This documentation helps establish a clear and recognized ownership status, enabling trustees to carry out their duties efficiently.
• Enhanced Credibility: Due to the trust's distinct legal identity, trustees find it easier to conduct transactions and access resources. The separation of the trust's legal entity simplifies administrative processes, enhances credibility, and facilitates the trustees' ability to engage in various transactions and secure necessary resources for the trust's operations.

Changes introduced in Filing of Form No. 10A Online

Form No. 10A has six sections, and relevant details are required to be filled in regarding incorporation and constitution, other registration, key persons, assets and liabilities, income, and religious activities.

You need to click each of these sections one by one and key in the details. The new e-filing portal requires you to fill in the information section-wise, after which the data has to be saved. This is unlike the earlier version, where you had to fill in all the information in a single go. Also, most details are in an auto-populated form.  

While filing the incorporation and constitution section, you are required to provide the date of incorporation/creation or registration, which is mandatory now.

The attachments of annual accounts for immediately preceding three financial years were mandatory earlier. It is not the case in the new portal.

Documents Required as Attachments with Form No. 10A

The documents, which are required to be uploaded along with Form No. 10A include self-certified copies of the:

• Trust deed (two copies) or Memorandum of Association (MoA) or Articles of Association(AOA)
• Registration certificate
• Permanent Account Number (PAN) and Aadhaar cards of the managing trustees
• Digital signatures of one of the trustees
• Existing 12A, 12AA and 80G certificates
• Foreign Contribution (Regulation) Act (FCRA) or any other certificate
• Annual accounts since the year of incorporation or for the immediately preceding three financial years (balance sheet, income and expenditure, receipts and payments accounts, and all relevant schedules)

Note: While attaching the required documents, the size of each document should not exceed 5MB and all the attachments together cannot exceed 50MB.

Process for Online Filing of Form No. 10A

Step 1: Log in to: www.incometax.gov.in

Step 2: Enter the user ID (PAN of the organisation) and password

Step 3: Select the ‘e-File’ tab and click on the ‘Income Tax Forms’ option and from the drop-down menu, select ‘File Income Tax Forms’

Step 4: Click on the tab: ‘Persons not dependent on any Source of Income (Source of Income not relevant)’/ ‘Tax Exemptions and Relief Form 10A’ is now visible, click on ‘File Now’

Step 5: The following details will appear auto-populated: PAN details of the organisation, ‘Online’ as the ‘Submission Mode’ and ‘Original’ as the ‘Filing Type’

Step 6: Select from the drop-down menu the Assessment Year (AY) 2024-25.

Step 7: Click on the ‘Continue’ tab

Step 8: Now, click on ‘Let’s Get Started’ to fill out the form

Step 9: Submit the form using digital signatures or an electronic verification code (EVC).

You can download Form 10A from Income tax portal in PDF form.