Registration under section 12ab and 80g for a charitable trust formed in 2023

The requirement for audit arises only for the purpose of claiming exemption under sections 11 and 12, not at the registration application stage. While filing Form 10A (for 12AB/80G registration), the trust is typically required to upload copies of annual accounts (up to the last 3 years, if available), but immediate audit is not a mandatory prerequisite for getting registration. The Commissioner may request more documents if needed, but an application cannot be rejected solely on the ground of non-submission of audited accounts at the initial stage.

Thanks so much Dhiraj ji for the clarification. This really helped. Regards, Manmohan

You are welcome.         

No, an audit is not a precondition to applying for registration under sections 12AB and 80G. The income-tax audit requirement under section 12A(1)(b) applies where the trust’s total income, computed before giving effect to sections 11 and 12, exceeds the maximum amount not chargeable to tax. For an individual below 60, that threshold was ₹2.5 lakh in FY 2023–24 and ₹3 lakh in FY 2024–25; the applicable threshold may differ with age and tax regime. Therefore, income merely being between ₹2.5 lakh and ₹5 lakh does not establish that an audit was required.

• Check the trust’s total income before sections 11 and 12, its trustees’/assessee status and the relevant tax regime. If the section 12A audit threshold was crossed, filing the ITR without audit does not cure the omission; take advice on the applicable correction and consequences.
• For registration, submit the prescribed application and supporting documents, including the trust instrument and accounts available. A newly formed trust ordinarily applies for provisional registration/approval if its activities have not commenced; the correct route and form depend on the trust’s activity status and registration history.

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