a) With a view to keep a check on the authenticity and genuineness of the activities of the organization, it has been proposed that even the existing charitable organizations registered u/s 12A or 12AA has to apply again for renewal within 3 months from the date of the new section 12AB coming into force (proposed date is 01.06.2020) and the renewed registration shall be limited to a period of maximum 5 years.

The organization have to re-apply again six months before the expiry of such 5 years registration.

b) Similar amendment applies for getting the renewed registration u/s 80G too.

c) Any New Charitable organization applying afresh for the above registrations, shall get a provisional certificate for 3 years post which it has to apply for renewal (6 months before the expiry of provisional registration) and then it might get the permanent registration of 5 years.

Other Amendments:

d) Organizations so approved u/s 80G, have to submit an annual statement containing the details of donor from whom the donation has been received during the year. This is done to cross-check the accuracy and genuineness of the amount claimed by the donor in his income tax return. Failure to file such statement, shall attract interest & penalty which is yet to be notified.

The due date for filing such statement is also yet to be notified.

e) The Due date of filing Form 10B (which is tax audit report) remains 30th September, 2019 but in order to pre-fill the details related to tax audit in the income tax return, it has been proposed that the due date of income tax return has been changed permanently to 31st October for every year henceforth.

f) TDS on technical services (other than professional services) has been reduced to 2% u/s 194J.

P.S. – These are the amendments proposed and shall become an act only once the bill is passed by both the houses of Parliament.

Other amendments, if any, shall be updated once the Finance Act is released officially.