While a trust is registered under Section 12AA, the registration referred to therein shall be inoperative from the date of approval of the trustor organization pursuant to Section 10(23C) or Section 10(46) or from the date of entry into force of this proviso, i.e. 01/06/20020 as previously stated.
New Article 12A(1)(ac) was introduced provided that, pursuant to the proposed Section 12AB, the trustor institution is registered on an application by the person receiving income as specified and in the manner prescribed to the Principal Commissioner or Commissioner for trust/institution registration; where a trust or an institution is registered under section 12A or und Within three months of the date of entry into force of this clause; whether, within thirty days from the date of adoption or alteration, a trust or organization has adopted or undergone changes to items that do not comply with the conditions of registration.
Amendments will take effect from 1st June 2020.
It is also suggested that the accountants should be audited by the Trust or organization as stated in Explanation below (2) of section 288 by the specified date under sub-section 44AB (i.e. one month before the due date for filing a return pursuant to section 139) of Section 12AA(1)(b), in consequence, of that section. The change will take effect from 1 April 2020 and will, therefore, apply in relation to the 2020-2021 assessment year and subsequent evaluation years.
Current clause 12AB of the Income Tax Act relating to the fresh registration process.
Section 12AB(1) provides that, upon receipt of an application made under the proposed clause (ac) of paragraph (1) of section 12A, the Principal Commissioner shall send to the Trust or Organization a copy of an order issued in writing, if the application for a period of five years is pursuant to subsection I of that clause, registering the trust or institution;
(i) call for such documents or information from the trust or institution or making such inquiries as he thinks necessary in order to satisfy himself about,-(A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its object; and (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, under item (A), and compliance of the requirements under item (B), of sub-clause (i),–– (A) registering the trust or institution for a period of five years; (B) if he is not so satisfied, pass an order in writing rejecting such application and also canceling the registration of such trust or institution after affording a reasonable opportunity of being heard; (C) where the application is under sub-clause (vi) of the said clause, provisionally registering the trust or institution for a period of three years from the assessment year from which the registration is sought.
Section 12AB(3) of the Division specifies that, before the expiry of the three months, six months and 1 month period, an order is given in the form and manner specified by Section 12AB(1)(a), Section 12AB(1)(b)(ii) calculated as of the end of the month of receipt of an application.
Clause (vi) of that sub-section includes one condition under which the organization or fund is currently approved by the Commissioner in accordance with the rules laid down in that respect in connection with donations made after 31 March 1992.
To amend Section 80G(5) so as to provide additional conditions as :
The organization or the fund shall prepare a declaration for the specified period of time and send or cause it to be submit to the prescribed income-tax authority or the person approved by the prescribed income-tax authority in such form and confirmed by such a person, and shall provide the particulars and the time prescribed and may also transmit the details to the prescribed authority.
The organization or fund sends to the donor a certificate showing the amount of donations containing such information and within such periods as may be provided by rules from the date on which the donation is received.