Section 12A

GST, Income Tax, FCRA & Other Compliances of Charitable Entities

Income Tax - 1. Income Tax Related Compliances a. Registration under Section 12AB The trust can carry on the charitable or religious activities as per the objects for which it was formed. However, in order to claim tax exemption of its receipts and income, it needs to get registered under the Income Tax Act, 1961. Section 12AB registration […]...

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Draft Guidance Note: A Comprehensive Analysis Guide to Audit of Public Charitable Institutions

Income Tax - Exposure Draft for the issuance of a ‘Guidance Note on Audit of Public Charitable Institutions under section 12A of the Income-Tax Act, 1961.' The primary objective of this Guidance Note would be to provide direction and clarity for the audit of public charitable institutions, which are registered under section 12A of the Income-Tax Act...

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Income Tax Exemption to registered charitable & religious Trust

Income Tax - The Finance Act 2021 and the Finance Act 2022 have made some critical amendments to the conditions to be followed by registered charitable & religious Trust to avail the exemption under section 11 of Income Tax Act, 1961. Criteria for Exemption to registered charitable & religious Trust under section 11 of Income Tax Act, 1961 [&h...

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New Registration Application or Renewal Process for Trusts, Societies

Income Tax - NEW REGISTRATION APPLICATION OR RENEWAL PROCESS FOR TRUSTS, SOCIETIES AND OTHER INSTITUTIONS UNDER SECTIONS 12A, 12AA, 12AB AND 80G In Union Budget 2020, Finance Ministry had proposed major amendments for granting exemptions u/s 12AA, 12AB and donation u/s 80G to trust, society or other institutions. Same were postponed due to COVID and o...

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Procedure For Filing Form 10BD – A Step by Step Approach

Income Tax - PROCEDURE FOR FILING FORM 10BD – A STEP BY STEP APPROACH Procedure for filing Form 10BD for Financial Year 2021-22 [Due date 31st May 2022] A. Introduction Much awaited Form 10BD has been release by the Income Tax Department. In continuation to my article on ‘Note on Statement of Donations and Certificate of Donations‘ ...

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Request to relax confusion created in new registration regime for charitable organizations

Income Tax - Karnataka State Chartered Accountants Association made a representation on 31.10.2022 to Minister of Finance Smt. Nirmala Sitharaman and requested to simplify the confusion created in the new registration regime for charitable organizations and relax compliances under new regime for registration/approval of trusts, institutions, funds, un...

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Technical Guide on Audit of Charitable Institutions under Section 12A of Income-tax Act, 1961

Income Tax - Technical Guide on Audit of Charitable Institutions under Section 12A of Income-tax Act, 1961 provides guidance on audit of Public Charitable Institutions ...

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CAG report on Income Tax Exemptions to Charitable Trusts & Institutions

Income Tax - CAG noticed ineffective monitoring of accumulation of income and its utilization, ineffective monitoring of receipts and utilization of foreign contribution, inadequacy of survey of educational Trusts, absence of provision for disclosure of TDS in the audit report, etc....

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How to file Form 10BD – Part-B Details of donors & donation

Income Tax - These instructions are guidelines to help the taxpayers for filling the particulars in CSV template in Part-B Details of donors and donation relevant to the Financial Year....

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Representation on Issues in Registration of Charitable institutions due to order of CITs

Income Tax - BCAS representation in regard to the conditions set out in various orders of registration granted to Charitable institutions in response to applications preferred  under section 12A(1)(ac) and the first proviso to section 10(23C) of the Income Tax Act 1961. Bombay Chartered Accountants Society  Harnessing Talent and Providing Quality Se...

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Reassessment proceedings without any new tangible material is unsustainable in law

Framji Dinshaw Petit Parsee Sanatorium Vs ITO (Bombay High Court) - Bombay High Court held that re-assessment proceedings, in absence of any failure to disclose any material fact and without any new tangible material which was not available at the time of passing of the original assessment order, is unsustainable....

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Section 56(2)(x) not attracted to trust created for benefit of members/relative of settler identified as beneficiaries

ITO Vs Aam Family Private Trust (ITAT Mumbai) - ITAT Mumbai held that provisions contained in section 56(2)(x) of the Income Tax Act are not attracted in case of the trust created for the benefit of the members / relatives of the settler who have been identified as beneficiaries....

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Conditional approval under section 80G by PCIT is unsustainable

Lady Meherbai D. Tata Education Trust Vs CIT (ITAT Mumbai) - ITAT Mumbai held that granting of conditional approval under section 80G of the Income Tax Act by PCIT/CIT is unsustainable in the eyes of law....

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Section 12AA: Registration cannot be denied without reasonable opportunity

New Sunrise English High School Vs CIT (ITAT Pune) - Action of the Ld. CIT(E) suffered from sufficiency of reasonable opportunity to the appellant to refute the rejection vis-à-vis to comply with the requirements sought, thus for the reason, we without commenting on the merits of the case, deem fit to remand the matter back to the file of Ld. CIT(E)...

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Cancellation of income tax registration u/s 12AA(3) justifiable as Government declared PFI as unlawful association

Popular Front of India The CIT [Exemptions] (ITAT Delhi) - ITAT Delhi held that Ministry of Home Affairs, vide Notification dated 27.09.2022 clearly demonstrated the Popular Front of India (PFI) and its associates or affiliates or fronts as an unlawful association and hence cancellation of income tax registration u/s 12AA(3) of the Income Tax Act justified....

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CBDT extends last date for filing of Form No.10AB

Circular No. 8/2022-Income Tax - (31/03/2022) - CBDT extends the last date for filing of Form No.10AB for seeking registration or approval under Section 10(23C), 12A or 80G of the IT Act,1961. The application for registration or approval in Form No. 10AB can be filed upto 30th September, 2022. *** CBDT extends last date for filing of Form No.10AB...

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CBDT notifies New Income Tax Rules & Forms for Trust & NPOs

Notification No. 19/2021-Income Tax/G.S.R. 212(E). - (26/03/2021) - CBDT issues Notification no. 19/2021 dated 26/03/2021 pertaining to procedure for registration of fund/ trust/charitable institutions etc. All institutions, funds etc covered under clause (i) and (iv) of first proviso to section 10(23C), fifth proviso to section 35(1), clause (i) and (iv) of first p...

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Time allowed for filing of return of income by Trust claiming exemption

F.No. 173/193/2019-ITA-I - (23/04/2019) - Thus, for a trust registered u/s 12AA of the Act to avail the benefit of exemption u/s 11 shall inter-alia file its return of income within the time allowed u/s 139 of the Act. Accordingly, orders u/s 143(1)(a) in those cases in which demand has been raised on this issue may please be rectified....

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Section 12A’s Popular Posts

Recent Posts in "Section 12A"

Reassessment proceedings without any new tangible material is unsustainable in law

Framji Dinshaw Petit Parsee Sanatorium Vs ITO (Bombay High Court)

Bombay High Court held that re-assessment proceedings, in absence of any failure to disclose any material fact and without any new tangible material which was not available at the time of passing of the original assessment order, is unsustainable....

Read More

Section 56(2)(x) not attracted to trust created for benefit of members/relative of settler identified as beneficiaries

ITO Vs Aam Family Private Trust (ITAT Mumbai)

ITAT Mumbai held that provisions contained in section 56(2)(x) of the Income Tax Act are not attracted in case of the trust created for the benefit of the members / relatives of the settler who have been identified as beneficiaries....

Read More

GST, Income Tax, FCRA & Other Compliances of Charitable Entities

1. Income Tax Related Compliances a. Registration under Section 12AB The trust can carry on the charitable or religious activities as per the objects for which it was formed. However, in order to claim tax exemption of its receipts and income, it needs to get registered under the Income Tax Act, 1961. Section 12AB registration […]...

Read More
Posted Under: Income Tax |

Conditional approval under section 80G by PCIT is unsustainable

Lady Meherbai D. Tata Education Trust Vs CIT (ITAT Mumbai)

ITAT Mumbai held that granting of conditional approval under section 80G of the Income Tax Act by PCIT/CIT is unsustainable in the eyes of law....

Read More

Draft Guidance Note: A Comprehensive Analysis Guide to Audit of Public Charitable Institutions

Exposure Draft for the issuance of a ‘Guidance Note on Audit of Public Charitable Institutions under section 12A of the Income-Tax Act, 1961.' The primary objective of this Guidance Note would be to provide direction and clarity for the audit of public charitable institutions, which are registered under section 12A of the Income-Tax Act...

Read More
Posted Under: Income Tax |

Section 12AA: Registration cannot be denied without reasonable opportunity

New Sunrise English High School Vs CIT (ITAT Pune)

Action of the Ld. CIT(E) suffered from sufficiency of reasonable opportunity to the appellant to refute the rejection vis-à-vis to comply with the requirements sought, thus for the reason, we without commenting on the merits of the case, deem fit to remand the matter back to the file of Ld. CIT(E) for according reasonable & effective op...

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Cancellation of income tax registration u/s 12AA(3) justifiable as Government declared PFI as unlawful association

Popular Front of India The CIT [Exemptions] (ITAT Delhi)

ITAT Delhi held that Ministry of Home Affairs, vide Notification dated 27.09.2022 clearly demonstrated the Popular Front of India (PFI) and its associates or affiliates or fronts as an unlawful association and hence cancellation of income tax registration u/s 12AA(3) of the Income Tax Act justified....

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Approval under section 80G cannot be subjected to any condition

Sir Ratan Tata Trust Vs CIT (Exemptions) (ITAT Mumbai)

Approval under section 80G sought for by the assessee cannot be subjected to any condition as there is an inbuilt mechanism to be complied with by assessee after getting registration/approval under section 12AA and 80G...

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Corpus donation is capital receipt & irrecoverable – Not Taxable even if Trust is not unregistered

Versova Kokni Sunni Jamat Trust Vs CPC (ITAT Mumbai)

Assessee submitted that corpus donation is in the nature of capital receipt and thus not taxable in the hands of assessee trust irrespective of not being registered under section 12A of Act....

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Assessment proceedings commence with filing of Income Tax return

Leh Nutrition Project Vs DCIT (ITAT Amritsar)

Assessment proceedings commence with filing of Income Tax return and not when notice is issued for the first time under section 143(2)...

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