Friends,
The below table has been designed specially for you to clear doubts/confusion regarding selection of correct clause and provisos of Section 80G(5) regarding provisional approval, regular approval, renewal of 80G approval, approval as an entity never approved and claimed exemption before, conversion from provisional to regular registration etc.
| Section 80G | Provisions | Applicability | Form # | Period of registration |
|---|---|---|---|---|
| Clause (i) of first proviso to sub-section (5) of section 80G | where the institution or fund is approved under clause (vi) [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020], within three months from the 1st day of April, 2021; | Existing 80G approved entities as at 1.4.2021. Will get approval from 1.4.2021. Very rare situation now. | 10A | 5 years |
| Sub-clause (A) of clause (iv) of first proviso to sub-section (5) of section 80G | where activities of the institution or fund have not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; | Provisional approval for trusts who have not commenced charitable activity | 10A | 3 years |
| clause (ii) of first proviso to sub-section (5) of section 80G | where the institution or fund is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; | Renewal of regular 80G approval | 10AB | 5 years only |
| Clause (iii) of first proviso to sub-section (5) of section 80G | where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; | Conversion of Provisional to Regular approval (either or clause whichever is earlier) | 10AB | 5 years from the AY when provisional approval granted |
| Sub-clause (B) of clause (iv) of first proviso to sub-section (5) of section 80G | where activities of the institution or fund have commenced and where no income or part thereof of the said institution or fund has been excluded from the total income on account of applicability of sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 or section 11 or section 12 for any previous year ending on or before the date of such application, at any time after the commencement of such activities | Regular approval by trust which has never been registered and claimed benefit under Section 11-12 or 10(23C0 as the case maybe | 10AB | 5 years |
Please note that condonation of delay provision is not applicable for 80G approvals.
Please refer to the above table when in doubt about which provision to select for 80G approval.
CS Sharad Bhargava