TRUST REGISTRATION RENEWAL REG

Renewal of registration under Section 12AB of the Income Tax Act must be done before the expiry of your current registration—specifically, at least six months prior to the expiry date. Since your current validity expires on 31-03-2026, the deadline for applying for renewal is 30th September 2025 (check if extended by a month). Failure to apply by this date may result in the loss of tax exemption benefits for your trust.

Renewal Procedure

1. Prepare Necessary Documents:

   • Registered Trust Deed/Memorandum of Association (self-certified copy).

   • Copy of existing registration certificate under Section 12A/12AA/12AB.

   • PAN card of the trust.

   • Financial statements, books of account, and ITRs for the past years (as applicable).

   • Details of key persons (trustees, etc.).

1. Login and Apply Online:

   • Log in to the Income Tax e-filing portal using the trust’s credentials.

   • Go to the “Income Tax Forms” section, and select “Form 10AB” for renewal.

   • Fill in the required details and upload all supporting documents.

2. Submission and Inquiry:

   • Submit the completed Form 10AB online.

   • The application is subject to review by the Commissioner of Income Tax (Exemptions), who may ask for further clarifications or documents.

3. Order and Validity:

   • After examining your application, the Commissioner will pass an order (approval or rejection) and issue a new registration order in Form 10AC or 10AD.

   • If approved:

     • Trusts with annual income up to ₹5 crore in both of the two preceding years will get renewal for 10 years.

     • Others will get renewal for 5 years.

Thanks for ur immediate reply Sir....Our Trustees is not available in India now...they will come back only after October end .May i apply for renewal of trust  in November 1st Week because all the documents to be uploaded with the self attestation of the trustees.Kindly Clarify Sir...

If trust renewal is not applied within the due date, the trust risks losing its eligibility for income tax exemptions under Sections 12AB and 80G, as there is generally no provision for condonation of delay, except in rare circumstances and through special notifications from tax authorities. 

Main Consequences

• The trust loses tax exemption benefits, which can result in significant financial liabilities.

• Income of the trust during the period becomes taxable as a regular entity.

• Accreted income (difference between assets’ fair market value and liabilities) may be taxed heavily under Section 115TD.

• There is no routine allowance for delayed renewal, and missing deadlines can have permanent effects, including cancellation of the trust’s registration.

• The trust’s accumulated assets and unrestricted funds may face steep taxes if renewal is not secured.

Renewal of trust registration must be managed systematically to preserve compliance status, retain donor confidence, and avoid heavy taxes.Failing to renew trust registration on time results in significant consequences, including loss of tax exemption, exposure to punitive tax, and reputational damage.

Financial Consequences

• The trust loses its eligibility for income tax exemption under Sections 12AB and 80G, making its income taxable at regular rates as an Association of Persons (AOP).

• The trust may be subject to tax on accreted income at the maximum marginal rate under Section 115TD, often resulting in a substantial tax burden from the difference between the trust’s asset value and liabilities.

Donor and CSR Impact

• Donors cannot claim deductions under Section 80G during the lapse, making the trust less attractive for donations and CSR funding.

• Corporations generally require valid registrations for CSR grants, so a lapse can cut off critical funding sources.