The Central Board of Direct Taxes (CBDT) has extended the deadline for registration by charitable and religious trusts till September 30, 2023. The previous deadline was November 25, 2022.
The extension of the deadline was announced in a circular issued by the CBDT on May 24, 2023. The circular said that the extension was being granted “in view of representations received from various stakeholders”.
Under the Income Tax Act, 1961, charitable and religious trusts are eligible for exemption from income tax if they are registered with the Income Tax Department. To be eligible for registration, trusts must meet certain requirements, such as having a clear objective, a board of trustees, and a set of rules and regulations.
The extension of the deadline will give charitable and religious trusts more time to apply for registration. This is especially important for trusts that are new or that have not been able to complete the registration process due to unforeseen circumstances.
Trusts that are already registered with the Income Tax Department do not need to apply for re-registration. However, they must still file their annual returns with the department by the due date.
The CBDT’s decision to extend the deadline for registration by charitable and religious trusts is a welcome move. It will help to ensure that more trusts are able to benefit from income tax exemption, which will allow them to focus on their charitable and religious activities.
To register a charitable or religious trust, you will need to file Form 10AB with the Income Tax Department. You can download Form 10AB from the Income Tax Department’s website. Once you have completed Form 10AB, you will need to file it with the Income Tax Department.If your application is approved, you will be issued a registration certificate.
Benefits of Registering a Charitable or Religious Trust
There are a number of benefits to registering a charitable or religious trust. These benefits include:
- Income tax exemption: Charitable and religious trusts that are registered with the Income Tax Department are eligible for exemption from income tax on their income.
- Donations: Donors who make donations to registered charitable and religious trusts are eligible for tax deductions.
- Access to government grants: Registered charitable and religious trusts are eligible to apply for government grants.
- Public trust: Registration with the Income Tax Department gives the public trust in the trust’s activities.
If you are considering setting up a charitable or religious trust, register it with the Income Tax Department. Registration will provide you with a number of benefits, including income tax exemption, donations tax deductions, and access to government grants.