Section 12AB/10(23C) and 80G Both Final Registration REJECTED! What are the way outs? Appeal to ITAT

Most of the offices of the Commissioner of Income Tax (Exemptions) have been rejecting the grant of Final Section 12AB [or 10(23C)] and Section 80G Registrations wherever the Applications on Form-10AB have been filed beyond a period of 6 months after the commencement of Activities. Even on the 2nd fresh attempt also the results are the same.

What to do next?

Step No. 1: First you sincerely need to assessee the amount of damage/ or adverse impact of these Rejection Orders passed on your NGO. Section 12AB-80G Registration rejected then first, you need to check whether Provisional Registrations have also been Cancelled?

12AB REJECTED: Section 115TD – Exit Tax @ Maximum Marginal Rate on the Net Fair Market Value of your NGO.

80G REJECTED: No adverse impact on your NGO except operational issues.

Step No. 2: Let us wait for some extension or clarification from CBDT thru a Circular for next few weeks.

Step No. 3: Should you apply again? Any benefits? The answer is "NO".

Step No. 4: The Big NGOs must think of filing an Appeal before the Income Tax Appellate Tribunal [ITAT] within 60 days of receipt of Rejection Order from the office of Commissioner of Income Tax [Exemptions]. Govt filing fee Rs. 500/-. The ITAT may grant some relief and remand back the matter to CIT(E).