Income Tax Business Application (ITBA) Exemption Module-Approval, registration cancellation of trusts societies non-profit companies u/s 12AA 80G(5) 10(23C)

Income Tax Business Application (ITBA) Exemption Module

Income Tax Department has launched a new Income Tax Business Application (ITBA) Exemption Module (Phase1). The said module has been designed to automate and expedite the the following functions:

(a) Registration and cancellation of trusts/societies/non-profit companies u/s 12AA of the Income Tax Act, 1961.
(b) Approval and cancellation of trusts/societies/non-profit companies u/s 80G(5) of the Income Tax Act, 1961.
(c) Approval and cancellation of trusts/societies/non-profit companies u/s 10(23C)(iv), 10(23C)(v), 10(23C)(vi) and 10(23C)(via) of the Income Tax Act, 1961.

Initially, in phase-I, the functions at serial (a) and (b) above has been rolled out to be followed by functions u/s 10(23C).

Major Highlights of the Exemption Module:
ITBA/Exemption Instruction No.-1 issued by Directorate of Income Tax (Systems) incorporate the functionalities of the module. The Key features of the same are as under:

Processing of Applications:
All applications received u/s 12AA/80G/10(23C) shall be entered into the module and digitized. The application shall be verified against the standard checklist provided in the module. In case any deficiency is found in the application, a facility has been provided to generate the Questionnaire to the assessee.

Recording of Hearing:
After the hearing is concluded, the details of it can be recorded in the module. In case of adjournment, adjournment of the hearing, the next hearing date and its type, along with priority is also captured in the module.

Generating Order:
Facility to generate an order has also been provided in the Module. However, Only PCIT (Exemption) has the privilege to-generate the order.

Cancellation of Registration/Approval:
Facility to cancel an already granted exemption for violation of any condition has already been provided. However, the process for cancellation can be initiated by the PCIT (Exemptlon)/HQ of PCIT (Exemption/Staff of HQ of CIT(Exemption) on suo-moto basis or on request by the Assessee or based on recommendation received from any department user/any other source.

Data entry of existing Approved/Rejected Applicationss:
In case application is already processed outside the system, then facility to capture the details in the module has been provided through data entry of already approved/rejected/cancelled cases screen.

Generation of MIS:
There is a facility for viewing and generating and viewing various MIS in respect of the processing of application.

Updating Database of registered/ Approved Entities
Apart from automating the functionalities as above, the instruction also directs for the data entry of previously registered/ Approved entities through “Exemption Excel Utility”.

As per the instruction, the information available on the National Website of the Income Tax Department incometaxindia.gqv.in. of already registered entities is incomplete in many cases and there is a possibility that data of some cases may have been omitted. In order to build a comprehensive database of already registered/approved entities, a pre-prefiHed excel utility will be provided to all PCsiT (Exemption) to complete it by filling up missing fields etc. This will enable complete enable historical data availability in the new application.