Rationalising the process of registration of trusts, institutions, funds, university, hospital etc and approval in the case of association, university, college, institution or company etc

Finance Bill 2020 Proposes Streamlined Registration for Trusts and Institutions u/ss 12AA and 10(23C.

The Budget 2020-21 and Finance Bill, 2020 propose to streamline the registration process for trusts, institutions, universities, hospitals, and similar entities under sections 12AA and 10(23C) of the Income Tax Act. The aim is to address difficulties faced in obtaining registration or approval before commencing activities. The proposal includes granting approvals for a limited period, not exceeding five years, to ensure compliance with conditions for maintaining exemptions. This approach seeks to reduce unnecessary investigations and requires entities to renew their registration periodically, applying to both existing and new exempt entities.