Our organisation received provisional 12A registration for 3 years. We started our charitable activities only after getting this registration. Can we still apply for conversion to regular registration within 6 months after the 3-year period ends?
The provision in Income Tax Law for provisional registration under 12A and 80G is that provisional registration is granted to new NPOs i.e. those that have not commenced charitable activity for a period of 3 Assessment Years. However, if after obtaining provisional registration, the same organisation has commenced charitable activity which is inevitable, then conversion from provisional to regular registration for 5 years has to be initiated within 6 months from commencement of charitable activity by filing Form 10AB. The 3 Assessment Year validity clause is inoperative once charitable activity is commenced.
In case you have commenced charitable activity and not applied for conversion from provisional to regular registration within time, Form 10AB will have to be filed and showing reason for delay in conversion which will be condoned by CIT before the conversion application is proceeded with.
Hope it clarifies.
CS Sharad Bhargava
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