Trust & NGO Registration — Forms 10A, 10AB, 10B, 10BB

Section 12AB — Income-tax Act, 1961
Inserted by Finance Act 2020 (effective 1 June 2020, operationalised from 1 April 2021). Provides for registration of trusts and institutions eligible for exemption under Sections 11 and 12. Registration is provisional (3 years) for new trusts and regular (5 years) for established trusts with 3+ years of activity. All trusts that held registration under old Section 12A or 12AA were required to re-register under 12AB by 30 September 2022.

Section 10(23C) — Income-tax Act, 1961
Exempts income of universities, educational institutions, hospitals, and research associations that are approved by the prescribed authority. Approval/renewal is via Form 10AB.

Section 12A(1)(b) — Audit requirement
Trusts with gross receipts above ₹5 lakh must get their accounts audited by a CA and submit the audit report in Form 10B along with the ITR-7. For AY 2024-25 onwards, the ₹5 lakh threshold applies (revised from ₹2.5 lakh by CBDT Notification 7/2023).

Rule 17A — Form 10A / Form 10AB
Prescribes the application procedure, documents required, and the prescribed authority for grant of registration/approval under Sections 12AB and 10(23C).

Rule 17B — Form 10B / Form 10BB
Prescribes the format of the CA audit report for registered trusts (Form 10B) and approved institutions (Form 10BB).

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ITA 2025 Concordance (in force 1 April 2026)
Section 12AB [ITA 1961] → Sections 332, 351 [ITA 2025] (§332: registration of charitable/religious trusts and institutions; §351: conditions for registration and approval)
Section 80G [ITA 1961] → Sections 133, 332, 354 [ITA 2025] (§133: deduction for donations; §354: approval for donation deductibility)
Transition note: AY 2026-27 runs under ITA 1961 per Section 536(2). Trust registrations from 1 April 2026 operate under ITA 2025 Sections 332ff.

A charitable or religious trust must be registered with the income tax department to claim exemption on its income under Section 11/12. Without registration, all income is taxable at normal rates. The registration framework was overhauled by the Finance Act 2020 — all trusts must now hold fresh registration under Section 12AB, and the older Section 12A/12AA registrations expired by 30 September 2022.

Types of registration:

• Form 10A — Application for provisional (3-year) or regular (5-year) registration under Section 12AB for charitable/religious trusts, institutions, and funds. Filed on the income tax e-filing portal. Provisional registration is granted within 1 month; regular registration requires physical verification.


• Form 10AB — Application for continuation or fresh approval for educational institutions, universities, hospitals, and research institutions under Section 10(23C). Also used when a trust wants 5-year renewal after the provisional period.

Annual compliance — audit reports:

• Form 10B — Mandatory CA audit report under Section 12A(1)(b) for trusts registered under Section 12AB with gross receipts above ₹5 lakh (from AY 2023-24). The CA certifies that income was applied for charitable purposes, accumulation was within limits (15% of income under Section 11(1)(a)), and all disclosures are complete.


• Form 10BB — Mandatory CA audit report for institutions approved under Section 10(23C). Similar to Form 10B but for the 10(23C) class (universities, hospitals, research associations).

Why this matters post-Finance Act 2020:
The new regime introduced a five-year registration cycle with mandatory revalidation. Trusts that do not renew face automatic loss of exemption — their income becomes fully taxable from the year of lapse. The CBDT has been strict: several trusts lost exemption for AY 2022-23 due to missed Form 10A filings. A CA who tracks renewal deadlines and monitors the portal is essential.