Charitable Trust Registration

Registration under the Indian Trusts Act 1882 (or a state public trusts act such as the Maharashtra Public Trusts Act 1950) creates the legal entity. Section 12AB of the Income Tax Act 1961 grants the trust exemption from income tax on its own income. Section 80G separately allows donors to claim a deduction on contributions. All three steps are independent — a trust can exist without tax exemption, but 12AB registration must be obtained before 80G approval can be sought. For tax year 2026-27 onwards, ITA 2025 renumbers these as Sections 228-229 (12AB equivalent) and Section 232 (80G equivalent).

The application is filed in Form 10AB on the Income Tax portal under Section 12AB. Required documents include the registered trust deed, PAN of the trust, audited financial statements for the last three years (or from inception if newer), a list of activities conducted with supporting evidence, and details of trustees with their PAN. The Commissioner of Income Tax (Exemptions) must pass an order within three months of the application date under Section 12AB(1)(b); if no order is passed within that period, the registration is deemed granted.

Yes. A newly formed trust can apply for provisional registration under Section 12AB(1)(a) using Form 10A. Provisional registration is valid for three years and is granted without requiring a prior track record of activities. Before the provisional period expires, the trust must convert to regular registration by filing Form 10AB with evidence of genuine charitable activities conducted, at which point the CIT(E) evaluates actual conduct under Section 12AB(1)(b).

A registered trust must file its income tax return in ITR-7 by October 31 of the assessment year (Section 139(4A) of ITA 1961; Section 263 of ITA 2025 for TY 2026-27 onwards). If gross receipts exceed Rs 2.5 lakh in a year, accounts must be audited under Section 12A(1)(b) read with Rule 17B and the audit report submitted in Form 10B (receipts above Rs 5 crore) or Form 10BB (receipts below Rs 5 crore). Trusts that receive foreign contributions must additionally file Form FC-4 annually under FCRA 2010 and maintain a designated FCRA bank account at SBI New Delhi Main Branch.

Voluntary donations received without any quid pro quo are not a supply under Section 7 of the CGST Act 2017 and are outside the GST net. However, if the trust provides taxable services such as paid coaching, ticketed events, or consultancy, it must register under Section 22 of the CGST Act once aggregate turnover exceeds Rs 20 lakh (Rs 10 lakh in special category states). Charitable activities listed under Entry 1 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 are exempt from GST, but the trust must assess each revenue stream separately to determine GST applicability.