NGOs are granted provisional 12AB registration/80G approval for 3 Assessment Years. This is with a rider in law that once the NGO commences charitable activity, it has to apply within 6 months of commencement of charitable activity in Form 10AB for conversion of the provisional to regular registration. NGOs do not know this rider nor are advised by their auditors in time. This results in not applying for conversion in time and losing section 11-12 benefits and 80G benefit to donors.
Once charitable activity begins, conversion from provisional to regular registration has to be applied within 6 months. Post 1.10.2024, NGOs who have failed to comply need to get condonation of delay showing reason and only the Form 10AB for conversion o provisional to regular registration will be proceeded with.
Please pay attention and not misunderstand or misinterpret the validity period of provisional 12 AB registration/80G approval.