All About Form 10A of the Income Tax Act: A complete guide

What is the step-by-step procedure to file Form 10A?

• Visit https://www.incometax.gov.in
• Log in using the PAN of the trust/institution and the valid credentials.
• Go to the “e-File” menu.
• Select “Income Tax Forms” then “File Income Tax Forms”.
• In the search bar, type “Form 10A” and select the relevant option.
• Choose the applicable section under which you are seeking registration like Section 10(23C), 12A, or 80G.
• Confirm whether this is a fresh application or a re-registration.
• Enter details such as Name of the organization, PAN, Address, Nature of activities, Registration details under other laws like FCRA, Societies Act, etc.
• Upload scanned copies of Trust deed or MOA, Registration certificate, Audited financials, List of trustees/directors, Other applicable documents
• Review all details entered.
• Click on “Proceed to e-Verify”.
• Choose an e-verification method: Aadhaar OTP, Digital Signature Certificate (DSC), or EVC through bank account.
• Once successfully submitted and e-verified, an acknowledgment is generated.
• Save or download it for future reference.

What are the Benefits of filing Form 10A?

• Eligibility for Tax Exemption: Filing Form 10A ensures that your trust or institution qualifies for exemption under Sections 12A, 80G, or 10(23C) of the Income Tax Act. This reduces the organization’s tax liability and helps retain more funds for charitable or religious activities.
• Attracts Donors with 80G Benefit: Once approved, donors to your organization can claim tax deductions under Section 80G. This makes your institution more appealing to potential donors who are looking to contribute to recognized, tax-exempt organizations.
• Legal Recognition and Compliance: Filing Form 10A provides official recognition to the organization by the Income Tax Department. It shows that the institution is compliant with tax laws and operates with transparency and accountability.
• Access to Government Grants and CSR Funds: Registered and tax-exempt organizations are often eligible for government schemes, grants, and Corporate Social Responsibility (CSR) funding. Filing Form 10A opens up opportunities for such financial assistance.
• Mandatory for Renewal or Revalidation: As per recent amendments, even existing trusts and societies must revalidate their registration by filing Form 10A. Timely submission ensures continuity of benefits and avoids legal complications.

What are the consequences of not filing Form 10A?

• Loss of Tax Exemption Status: If the trust or institution fails to file Form 10A within the prescribed timeline, it may lose its registration under Sections 12A, 80G, or 10(23C), making its income fully taxable.
• Ineligibility for 80G Benefits to Donors: Without a valid registration, donors will not be able to claim tax deductions under Section 80G, which can discourage contributions and reduce overall funding.
• Disqualification from Government Grants and CSR Funding: Non-filing may lead to disqualification from receiving government schemes, aid, or CSR funds, as registration under the Income Tax Act is often a prerequisite.
• Legal and Compliance Issues: Failure to comply with the new regulations could result in notices, penalties, or scrutiny from the Income Tax Department, affecting the credibility and operations of the organization.

Conclusion

Suggested Read :

Form 61A of the Income Tax Act

Penalty chart under Income Tax Act

Notice of Intimation under Income Tax Act

Annual Compliances for Trust in India

Appeal to Commissioner under Income Tax Act

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