The Finance Act of 2020 had made significant changes to the governance framework for the charitable entities which revamped the procedure for obtaining registration / re-registration for Charitable entities registered u/s 12AA and 80G of the Income Tax Act, 1961 (‘IT Act’). The said amendments requires additional compliances / re-registrations to be complied by the Charitable entities.
Although these changes were to be made effective from 1 June 2020, The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (‘The Taxation Act’) postponed its applicability to 1 April 2021 considering the pandemic situation and accordingly, the same were made applicable for AY 2022-23 and onwards.
With regards to the registration and related compliances for the charitable entities, the CBDT vide Notification No. 19/2021 dated 26.03.2021 notified necessary compliance / registration / re-registration procedures for Charitable Institutions as well as for certain Research associations, etc. pertaining to scientific expenditure u/s 35 of the IT Act. We have tried to provide an overview of the detailed procedure for such charitable entities in the attached Newsflash.