Archive · 3 Sep 2025
Charitable Trusts Face Uncertainty Over Registration Extension
The government wants to help charities by extending their tax registration from 5 to 10 years, but it's not clear if it will happen automatically.
The Finance Act 2025 says this, but experts say it might require charities to renew their registration by September 30, 2025, or they could lose their tax benefits.
If charities don't renew, they might have to pay taxes on donations.
The Gujarat Chamber of Commerce and Industry (GCCI) is asking the government to make it simpler for charities.
The CBDT needs to clarify the process to help charities keep their tax exemptions.
Finance Act 2025 proposes extending the validity of registrations for charitable trusts.
The extension is for trusts with income under ₹5 crore in the last two financial years.
Experts say the extension might not be automatic; renewal is likely required.
The deadline for renewal applications is September 30, 2025, for certain trusts.
Failure to renew could lead to loss of tax exemptions and operational disruptions.
- Who
- Charitable trusts in India, CBDT, GCCI
- What
- Uncertainty over automatic extension of registration validity under the Finance Act 2025.
- When
- Renewal applications must be submitted by September 30, 2025.
- Where
- India
- Why
- To clarify whether trusts need to renew registrations, or if the 10-year extension applies automatically.
- Finance Act 2025 Proposal
- Extend validity of registrations under Section 12A/12AB from 5 to 10 years
- Eligibility
- Trusts with income not exceeding ₹5 crore in each of the two preceding financial years
- Renewal Deadline
- September 30, 2025, for trusts with registrations valid up to AY 2026-27
- Potential Consequences of Non-Renewal
- Loss of tax-exempt status, ineligibility for donor deductions, operational disruptions
- GCCI Proposal
- Grant 10-year registration validity to all charitable trusts that migrated under Section 12A in 2021