• By ADMIN
• Posted 16 Jun, 2021
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Re-Register Your Trust to Claim IT Exemption

If your trust enjoys the benefit of "charitable trust" exemption under Income-tax law, then it is the message for you. You have to re-register your trust in www.incometax.gov.in afresh with details and documents sought in Form 10A. If it is registered by the competent authority based on that, it is valid for next 5 years. At least 6 months before the expiry of 5th year, you have to register again to get exemption for next 5 years.

Unfortunately, the time given for re-registration is between 1st April' 2021 to 30th Jun 2021 and most of us are in lockdown and may not be able to do the needful within time provided. Further the website of the income-tax department, which is brand new, is not working to cater the needs of this procedural requirement for the time being. Hence, there could be an extension of the due date given above but one must be ready with information sought in Form 10A and as and when required needs to file the form at the earliest to continue the exemption.

If the re-registration is not done within the time provided, the law has already provided adequate power to the Income-tax department to issue notices and consequently, they can cancel the existing registration. If the existing registration is cancelled, then the trust may end up in paying tax at maximum marginal rate on the net worth of the trust. Net worth means total market value of assets minus total liabilities.