The Finance (No. 2) Bill 2024 proposes to merge the approval-based exemption under Section 10(23C) with the registration-based exemption under Section 12AB. This change affects entities operating under the Section 10(23C) regime, which must transition to the Section 11/12 exemption regime.
This article examines the procedural and constitutional implications of this shift for Section 10(23C) approved entities. The coverage includes:
‣ Summary of the Amendments and Key Issues
‣ Overview of Current Provisions under Section 10(23C)
‣ Process of Shifting from First Regime to Second Regime
‣ Conversion of Provisional Approval under Section 10(23C) to Regular Registration under Section 12AB and Related Issues
‣ Additional Compliances Due to the Transition from Section 10(23C) to Section 11
‣ Enabling Window for Solely Educational Institutions to Shift from Section 10(23C) to Section 11
‣ Reverting from a Solely Educational Institution to a Charitable Organisation
