Amendment in NPO
FM has proposed various amendments in Union Budget 2020.
1.
Change in tax rate and choice to be given to tax payer to opt
best option,
2.
More Incentive for Startup and
3.
Amendment in NPO etc
Today we will discuss about amendment in
NPO.
Question: My NGO has life time validity of 12A and 80G
certificate, should I apply for fresh registration?
Answer: Yes, As per amendment of union budget 2020 all Trust,
Company u/s 8 and Society has to apply and acquire to get new unique number for
each nonprofit organization.
Question: If I have to apply for new unique number for NPO how I
have to file and what is process to get these number?
Answer: All society, trust and Company under section 8 have to
apply in prescribed form (Form to be issued by Departments) on or after 1st
June 2020. All entity who has 12A, 10(23c) or 35 has to apply between 1st
June 2020 to 30th September 2020. This form is file online and
department will issue unique certificate to each entity. Any entity who has
12A, 10(23c) or 35 exemption certificate, can apply between the period and application
can be made only for one section. It means now any society, trust or company
under section 8 can apply only for one section. All enquiries for existing
exemption certificate holder will be done online and unique identification
number will be provided online. Income Tax Department must pass an order for
such approval within three months of the application
Such fresh approval will be made for five years only and entity
has reapply for renew before expiry of five years. Fresh registration will be
provided in section 12AB.
Same rule is applied for 12 A and 80G. Even any entity has obtained
registration in March 2020 itself, they require to file fresh application in
new form.
Question: which Documents are require to submit with online form
Answer: Department will come with new form to be filed online
and following documents is required
Ø
Three years Financial
Ø
PAN of entity
Ø
PAN of all governing body or member
Ø
Address proof of member
Ø
COI of entity
Ø
12A and 80G certificate
Ø
Ground of application and
Ø
Proof of NPO activity etc
Question: I incorporated one NPO and there is no social activity
in the entity, can I apply for 12AB in new rule?
Answer: In old provision in NPO has no Social or any activity
which is mention in bye laws or MOA , AOA, application form for 12A is rejected
because one pre condition was attached society should start social activity
before filing 12A and 80G etc.
I new Rule if any NPO has not started any social activity which
is mention in their bye laws can apply for 12AB and department will provide
provisional 12AB for three years. They have to reapply before expiry of three
for renewed.
Question: I have registration of 12A and 80G, can I have to
apply under both section for 12AB and 80G.
Answer: Section 12A and 80G are different section and both
require separate registration. So all entity have to apply under section 12AB
and 80G in new form separately.
Question: What to do If NPO has any amendments in bye laws.
Answer: There is no
change in old process and new process of exemption for NPO. Where a Trust or
Institution has made modification in its objects and such modifications do not
confirm with the conditions of registration, application has to be done again
with the designated authority within 30 days from the date of such
modification.
Question: If any entity has not followed above process, what are
consequences to entity?
Answer: If any entity has not applied for new unique number,
exemption certificate will be withdrawn and entity has to pay.
Question: Is any limitation to received donation in cash
Answer: yes, Departments has imposed restriction on cash donation.
As per Section 80GGA Limit for donation is
cash has been reduced from Rs 10,000 to Rs 2,000.
Question: any other reporting is to give NPO to governments
Answer: yes, all NPO has to report within specified time to
departments about donor details. Statements will consist Donor Name, PAN,
address and amount of donation along with mode of payments.
Question: What is due date to file ITR and Audit report
Answer: NPO can file ITR on or before 31st October and
Audit report has to file on or before 30th September.
#NPO, #exemptioncerticate #12Aregistartion,#10(23c) #incometaxexemption,#trust #society #ngo
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