Budget 2020 has bring in certain change with regards to charitable trust NGO and other entities that are required to get income tax registration under sec 12A or 10(23C).

The purpose changes in the budget 2020 are special down as under:

1. Fresh Application under the new Provisions of sec. 10(23C) or 12(AB) need to be done on or before 30 Aug 2020.
2. The fresh registration is valid for 5 years only which is different form currently regime where registration is granted until revoked by the tax authority .In the nut shell ,all trust charitable institution registered under sec 10(23C) or 11 will be required to renew their approval after every 5 years.
3. A concept of provisional registration is proposed for new charitable trust which has not start any activity and which are not registered .Such provision registration is valid for 3 years.
4. The Trust which are provisionally registered need to apply for regular 5 year registration with in the 6 month of commencement of activity or at least 6 month prior to expiry of 3 year.
5. At present there is no reporting obligation for   entity receiving donations. These entity need to apply certain receipt of donation towards their object and activity. With new technology it’s now feasible to match the donation with the expenditure expands.

A statement to that affect need to be furnished by the entities.