As per the Finance Bill 2023, Provisional Registration u/s 12AB is no longer required, once charitable activities are commenced.
The Finance Bill 2023 has proposed that under the newly inserted section 12A(1)(ac)(i), an organization can only apply for provisional registration, if its activity has not started.
Further proposed under the newly inserted section 12A(1)(ac)(ii) that all existing organization whose activity has commenced should directly apply for regular registration which will be subject to scrutiny. Therefore, the organizations where activity has already been started, there is no need to apply twice.
Earlier, trusts or institutions, where activities have already commenced, were required to apply for two registrations (provisional and regular) more or less simultaneously.