Tax Department Extends Deadline Trust Registration

Here’s the detailed information along with important points:

1. Deadline Extension: The Income Tax Department has extended the deadline for charitable and religious trusts to furnish registration applications with tax authorities until June 30.

2. Background: Previously, the Central Board of Direct Taxes (CBDT) had extended the due date for filing Form 10A and Form 10AB by trusts, institutions, and funds multiple times. The last extension provided was until September 30, 2023.

3. Purpose: This extension aims to provide charitable and religious trusts with additional time to complete the registration process and fulfill their tax obligations.

4. Form 10A and Form 10AB: These forms are essential for the registration of trusts, institutions, and funds under the Income Tax Act. They contain details about the organization’s objectives, activities, and financial information.

5. Compliance Requirement: Charitable and religious trusts must comply with the registration requirements to avail tax benefits and exemptions provided under the Income Tax Act.

6. CBDT’s Role: The Central Board of Direct Taxes oversees the administration of direct taxes in India and issues guidelines and extensions to facilitate compliance by taxpayers, including charitable and religious trusts.

7. Impact on Trusts: The extension provides relief to trusts that may have faced challenges in completing their registration applications within the earlier deadlines. It allows them more time to gather necessary documentation and information for submission.

8. Importance of Registration: Registration with the income tax department is crucial for trusts to enjoy tax benefits, such as exemptions on income and contributions received for charitable purposes.

9. Deadline Awareness: Trusts and institutions should be aware of the extended deadline and ensure timely submission of their registration applications to avoid penalties or loss of tax benefits.

In summary, the Income Tax Department’s extension of the deadline for registration by charitable and religious trusts until June 30 provides these entities with additional time to comply with tax regulations and complete the registration process.