Preface

The Taxation Laws (Amendment and Relaxation of Certain Provisions) Act, 2020 has completely revamped the registration procedure of the charitable trusts, institutions, NGO's and NPO's with effect from 1-4-2021. For this purpose, a new section 12AB has been inserted and section 12AA has been made inoperative w.e.f. 1-4-2021. Hitherto, trusts or institutions were registered under section 12AA. Under the new procedure, there is a radical change in the validity period of the registration of the trusts or institutions. Previously, registration was granted on perpetual basis but now after the amendment, registration is required to be renewed after every five years. Thus the concept of lifetime validity of registration once granted, is no more relevant. Under the new provision all the existing registered trusts are required to apply for fresh registration latest by the 31st August 2021. Further the new organisations are required to first obtain provisional registration and then convert it into regular registration by following the procedure prescribed therefor.

Rule 17A provides the form and manner for the purpose of registration by charitable trusts and institutions. Recently, the Income Tax (6th Amendment) Rules, 2021, has substituted rule 17A with effect from 1-4-2021 with a view to prescribe the form and manner under new procedure for registration by charitable trusts and institutions claiming exemption under sections 11 and 12.

Apart from revamping registration procedure for charitable trusts or institutions claiming exemption under sections 11 and 12, the procedure for obtaining approval for the purposes of exemption under section 10(23C)(iv)/(v)/(vi)/(via) and for purpose of deduction under section 80G have also been amended with effect from 1-4-2021. For the purpose of giving effect to the new procedure, rule 2C and rule 11AA have also been substituted w.e.f. 1-4-2021.

The present book aims at providing a ready referencer as well as deep insight in relation to the new law and procedure for registration or approval by the trusts, institutions, NGOs and NPOs.

The broad scheme of presentation of the subject matter is as under --

Part I

:

Charitable Trusts and Institutions

 

 

Section A : Procedure for Registration of Charitable Trusts/Institutions

 

 

Section B : Exemption to Charitable Trusts and Institutions

 

 

Section C : Forfeiture of Exemption

 

 

Section D : Computation of Income by Trusts/Institutions

 

 

Section E : Taxation of Charitable Trusts

 

 

Section F : Trust Deeds--Preparation and Samples

Part II

:

Trusts, Funds, Educational and Medical Institutions Exempt under Section 10(23C)

 

 

Section A : Exemption under Section 10(23C)(iv)/(v)/(vi)/(via)

 

 

Section B : Procedural Aspects and Requirement of Various Provisos to Section 10(23C)

 

 

Section C : Taxation and Audit of Charitable, Educational and Medical Institutions

 

 

Section D : Sample Draft Deeds

Part III

:

Donations and Approval under Section 80G

Part IV

:

Accounting by Trusts and Institutions

Part V

:

GST Implications Vis-a-Vis Trusts, Societies, etc.

 

 

Section A : GST--Basic Aspects

 

 

Section B : GST on NGOs, Trusts, Societies

The subject matter of this book is accordingly presented in 86 Chapters divided broadly under the above mentioned Five Parts. Keeping in mind the practice needs, special emphasis is laid on the Conveyancing Solutions as and where required. Certain Sample Draft Deeds for constituting Charitable/Educational Trusts and Charitable Dispensaries/Hospitals under commonly occurring practical situations, have also been provided, as guidance material, in order to make this product all inclusive and exhaustive enough for meeting the entirety of practice specific objectives behind it. The book is thus fully updated in the light of the Finance Act, 2021 and almost all important case law as available upto 15th August 2021 have been incorporated  at the relevant places.

Apt and suitable classification of Chapters and their appropriate groupings under various sections of the book would help a lot in taking away the rigour out of the complex subject matter dealt with herein. The result, the readers would naturally find, is a convincingly plain, simple, useful and practical guide book on the subject of Charitable Trusts and Institutions and of Non Profit Educational and Medical Institutions.

The icing on the cake is incorporation of a separate part dealing with important GST implications as regards to charitable trusts and institutions.

We will consider ourselves lucky if this effort of ours takes away some of the pains and troubles of our readers. We have tried to make it an error-free and quality publication, we shall however be grateful for any valuable and constructive suggestions.

JODHPUR

Dr. AVADHESH OJHA

22 AUGUST, 2021

CA. (Dr.) NISHA BHANDARI

RAKSHA BANDHAN

CA. SATYADEV PUROHIT