Stox N Tax

Conversion of Trust Registration from Provisional to Permanent Registration

Complete Procedure Under Income Tax Act, 1961

Trusts and NGOs registered under Section 12AB of the Income Tax Act initially receive a provisional registration valid for 3 years. To continue availing income-tax exemptions, the trust must apply for permanent registration before the expiry of the provisional status.
Failure to convert on time may lead to loss of exemption and taxation of receipts.

This article explains the complete step-by-step procedure, timelines, required documents, common mistakes, and FAQs.

1. When Should a Trust Apply for Permanent Registration?

A trust with provisional registration under Section 12AB must apply for permanent registration in the following timeline:

  • At least 6 months prior to the expiry of the provisional registration; or
  • Within 6 months from the date of commencement of activities,
    whichever is earlier.

2. Relevant Form for Conversion – Form 10AB

To convert from provisional to permanent registration, trusts must file Form 10AB on the Income Tax Portal.

Applicable Category:
→ “Application for registration under clause (iii) of first proviso to sub-section (5) of section 12AB”.

3. Documents Required for Permanent Registration

Prepare clear and updated documents before filing Form 10AB:

  1. Trust Deed / Memorandum of Association / Registration Certificate
  2. PAN of the Trust
  3. Financial Statements for past years (even if NIL)
    • Balance sheet
    • Income & expenditure account
    • Receipts & payments account
  4. Bank account statements
  5. Details of trustees & key persons – Aadhaar, PAN
  6. Note on activities of the trust
  7. Photographs of activities (if any)
  8. Registration certificates under other laws (if available)
  9. Details of donations received & applied
  10. CSR registration number (if applicable)

4. Step-By-Step Procedure to File Form 10AB

Step 1: Login to the Income Tax Portal

  • Visit the e-filing portal
  • Login with the trust’s PAN as user ID.

Step 2: Go to e-File → Income Tax Forms

Choose:
Form 10AB → Prepare & Submit Online.

Step 3: Select Appropriate Section

Select:
Section 12AB – Conversion from Provisional to Regular Registration (Clause iii).

Step 4: Fill Basic Details

  • Legal name of trust
  • Address
  • Email & mobile
  • Year of creation
  • Nature of activities
  • Registration details under other laws

Step 5: Provide Trustee Details

Enter details of all trustees with their PAN & identity proof.

Step 6: Upload Required Documents

Upload clear PDFs of all supporting documents.
Maximum file size per document: 5 MB.

Step 7: Submit Activity Report

A small write-up on activities, mentions:

  • Objectives
  • Key work undertaken
  • Beneficiaries
  • Mission & vision

Step 8: Verification

Submit the form using:

  • DSC (mandatory for companies)
    or
  • EVC (for trusts/NGOs)

Step 9: Acknowledgement Generation

You will receive Form 10AB Acknowledgement Number on the portal.

5. What Happens After Submission?

  • The CIT (Exemptions) will examine documents and may request additional information under Section 12AB(3).
  • If satisfied, the trust will receive Permanent Registration valid for 5 years.
  • If issues are found, the application may be rejected after giving an opportunity of being heard.

6. Important Points & Common Mistakes

✔ Don’t Wait Until Expiry

File well within time. Late filing is usually not condoned.

✔ Maintain Proper Books

Even if no major activity, prepare basic financials.

✔ Keep PAN, Trust Deed, and Registration Details Consistent

Any mismatch may lead to queries.

✔ Upload Legible PDFs

Blurred documents often lead to rejection notice.

✔ Ensure Activity Commencement Proof

Submit details of work done, photos, permits, or beneficiary details.

7. FAQs

1. What if the trust has not started activities?

You must still apply within the specified timeline. The department may grant approval based on genuineness.

2. Can we apply again if rejected?

Yes, but only after correcting deficiencies or modifying trust deed (if required).

3. What is the validity of permanent registration?

Permanent registration is valid for 5 years. Renewal must be done at least 6 months before expiry.

4. Is 80G registration also required separately?

Yes. Application for 80G is separate and also filed through Form 10AB.

Conclusion

Converting a trust’s registration from provisional to permanent is mandatory for continued tax exemption under Section 12AB. Filing Form 10AB on time with complete documentation ensures a smooth approval process and avoids future compliance issues.
Trusts should maintain proper records, financials, and activity proofs to justify their genuine charitable purpose.

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