CA Aman Rajput
Budget, 2025 proposed extending the validity of trust and institution registrations as per section 12AB from 5 years to 10 years. However, doubts are arising regarding its applicability across different categories of trusts and institutions.
Like what about existing trusts (12A(1)(ac)(i))?
The amendment applies only to new applications, but as no new applications can be filed after 1st April 2025 under this sub-clause, it is unclear whether existing registrations will automatically extend to ten years.
What about the renewal of registrations (12A(1)(ac)(ii))?
Trusts renewing after 1st April 2025 will get ten-year registration, but clarity is needed on whether those registered before this date will benefit.
What about the case of provisional registrations (12A(1)(ac)(iii))?
The requirement that total income (before applying for exemptions) should not exceed ₹5 crore in the preceding two years is impractical for newly established trusts that lack financial history.
The author can be contacted at aman.rajput@mail.ca.in
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