Section 12A

Taxation Aspects of Charitable Trusts

Income Tax - Charitable Trust is meant for public service and not for profit. Hence the Honorable Government has given exemptions in the form section 11 and 12. It will bring lot of tax benefits to the trusts and it can utilize the funds for its objectives. From the assessment year 2018-19 onwards, filing of return is to be done within the due date to...

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Guidelines issued by CPC for claiming Exemption u/s 10 & 11

Income Tax - As per the provisions of Income Tax Act, the exemption of income under sections 10 and 11 is governed by certain statutory conditions and procedures. In order to assist you in complying with these conditions and procedures, your attention is drawn to the following with a request to keep them in mind while filing Income tax return in ITR-7...

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Now Apply online for Section 12A Registration

Income Tax - As per Notification No. 10/2018-Income Tax issued by the CBDT as on 19.02.2018. Charitable or religious trust or institution can apply for registration under section 12A online. For registration of Charitable or religious trust or institution require to  file Form-10A. Document Require for Online registration:- 1. Certified copy of the i...

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Amended Rules for making Application for registration of charitable or religious trusts, etc

Income Tax - I have authored blog on the Concept of NGO and Step by Step Procedure for Registration u/s 12A.The existing Form No. 10A has been substituted vide CBDT Notification No.10/2018 dated 19/02/2018. Rule 17A has been substituted by the Income-tax (First Amendment) Rules, 2018, w.e.f. 19-2-2018. The amended rules provide for application for re...

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Benefits & Procedure for Registration u/s 80G of Income Tax Act,1961

Income Tax - Important Points related to Section 80G of Income Tax Act, 1961: It is important to note that when registration is granted under section 12A, it does not mean that section 80G approval has been given i.e. registration under section 12A will not provide automatic approval under section 80G. It has to be applied separately....

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Tax Worth Rs. 249 Crore Recovered from BCCI

Income Tax - As the income of BCCI was entirely exempt from tax under section 12A of the Income Tax Act 1961, the question of disclosing low earnings to avoid paying taxes did not arise. Gross receipt disclosed by BCCI in its tax returns for the assessment years 2007-08 to 2010-11, are Rs. 651.82 crore, Rs. 1,000.40 crore, Rs.1.387.02 crore and Rs. 1,...

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Budget 2010: Empowered Income tax department to cancel any charitable organisation's registration

Income Tax - The Income Tax department has got the power to cancel any charitable organisation's registration that accords it the benefit of tax exemption. The department can annul the registration and the exemption emanating from it if the organisation is found to violate the norms for registration, according to Budget 2010-11....

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Catholic churches worried about impact of direct tax code on them

Income Tax - Certain provisions in the Direct Tax Code applicable to religious and charitable institutions and trusts will pose "serious difficulties" for these organizations, the Catholic Church has said. "The Direct Tax Code as conceived creates serious difficulties for societies, trusts and institutions functioning under Catholic christians commun...

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Corpus fund cannot be taxed even if registration u/s 12AA has not been granted

Civil Services Institute Vs DCIT (ITAT Delhi) - Civil Services Institute Vs DCIT (ITAT Delhi) It is observed from communication between assessee and Government of Uttarakhand Department of Culture, Tourism and Games, Dehradun, dated 01/12/14, that funds were released, as ‘corpus fund’ for operation of Civil Services Institute construc...

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Deemed Registration if CIT fails to dispose off sec. 12AA application within 6 months

Visvesvaraya Technological University Vs Commissioner of Income-tax (Exemptions) (ITAT Bangalore) - Visvesvaraya Technological University Vs CIT (Exemptions) (ITAT Bangalore) Assessee has moved an application for registration under section 12A on 25.05.1999, but this application was not disposed of by the CIT and it was kept pending and assessee was persuaded by the Revenue to file another appli...

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CIT cannot cancel registration certificate granted U/s. 12A till 01.10.2004

Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. Vs CIT (Supreme Court of India) - Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. Vs CIT (Supreme Court of India) The CIT had no express power of cancellation of the registration certificate once granted by him to the assessee under section 12A till 1-10-2004. It is for the reasons that, first, there was no exp...

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Section 12A Registration to Convent- HC refers matter back to CIT

Sacred Heart Convent Vs Commissioner of Income Tax (Kerala High Court) - In the present case, the Commissioner does not speak of absence of a written constitution. The appellant also asserts that the constitution of the Generalate regulates the Houses also, which come under the Generalate. The Tribunal also found that the appellant comes under the exclusive control of t...

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Penalty U/s. 271B not leviable if Assessee had Bona fide belief that accounts not liable for audit U/s. 44AB

United Education Society, C/o NIMT College Vs JCIT (ITAT Delhi) - United Education Society Vs JCIT (ITAT Delhi)  Undisputedly, the assessee society is registered under section 12A of the Act as a charitable trust engaged in charitable activities for imparting education through its colleges. It is also not in dispute that the assessee society has been claiming exe...

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Recent Posts in "Section 12A"

Corpus fund cannot be taxed even if registration u/s 12AA has not been granted

Civil Services Institute Vs DCIT (ITAT Delhi)

Civil Services Institute Vs DCIT (ITAT Delhi) It is observed from communication between assessee and Government of Uttarakhand Department of Culture, Tourism and Games, Dehradun, dated 01/12/14, that funds were released, as ‘corpus fund’ for operation of Civil Services Institute construction at Dehradun. It is also observed th...

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Deemed Registration if CIT fails to dispose off sec. 12AA application within 6 months

Visvesvaraya Technological University Vs Commissioner of Income-tax (Exemptions) (ITAT Bangalore)

Visvesvaraya Technological University Vs CIT (Exemptions) (ITAT Bangalore) Assessee has moved an application for registration under section 12A on 25.05.1999, but this application was not disposed of by the CIT and it was kept pending and assessee was persuaded by the Revenue to file another application for registration. Vide letter dat...

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CIT cannot cancel registration certificate granted U/s. 12A till 01.10.2004

Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. Vs CIT (Supreme Court of India)

Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. Vs CIT (Supreme Court of India) The CIT had no express power of cancellation of the registration certificate once granted by him to the assessee under section 12A till 1-10-2004. It is for the reasons that, first, there was no express provision in the Act vesting the CI...

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Section 12A Registration to Convent- HC refers matter back to CIT

Sacred Heart Convent Vs Commissioner of Income Tax (Kerala High Court)

In the present case, the Commissioner does not speak of absence of a written constitution. The appellant also asserts that the constitution of the Generalate regulates the Houses also, which come under the Generalate. The Tribunal also found that the appellant comes under the exclusive control of the Generalate through the hierarchies as...

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Penalty U/s. 271B not leviable if Assessee had Bona fide belief that accounts not liable for audit U/s. 44AB

United Education Society, C/o NIMT College Vs JCIT (ITAT Delhi)

United Education Society Vs JCIT (ITAT Delhi)  Undisputedly, the assessee society is registered under section 12A of the Act as a charitable trust engaged in charitable activities for imparting education through its colleges. It is also not in dispute that the assessee society has been claiming exemption under section 11 of the Act on th...

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Corpus specific voluntary contributions received by trust not registered U/s. 12A/12AA not taxable

ITO Vs Serum Institute of India Research Foundation (ITAT Pune)

ITO (Exemptions) Vs Serum Institute of India Research Foundation (ITAT Pune) Corpus donations received by the Trusts, which is not registered u/s.12A/12AA of the Act, are not taxable as they assume the nature of ‘Capital receipt’ the moment the donations are given to the “Corpus of the Trust”. Provisions of section (24)(iia)/12(1)...

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Taxation Aspects of Charitable Trusts

Charitable Trust is meant for public service and not for profit. Hence the Honorable Government has given exemptions in the form section 11 and 12. It will bring lot of tax benefits to the trusts and it can utilize the funds for its objectives. From the assessment year 2018-19 onwards, filing of return is to be done within the due date to...

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Posted Under: Income Tax |

Section 40(a)(ia) not applicable to charitable or religious trust before 01.04.2019

Pediatric Infectious Diseases Academy Vs I.T.O. (ITAT Kolkata)

Where the income of the assessee was exempt under section 11 and the assessee was not carried on the business, section 40(a)(ia) had no application. Moreover, the insertion of Explanation 3 to Section 11 by the Finance Act, 2018 making inter alia the provisions of Section 40(a)(ia) applicable in case of charitable or religious trust or in...

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CIT can refuse to grant registration to Charitable trust only if he is not satisfied with Genuineness of its activities

CIT (Exemptions) Vs. Lord Krishna Charitable Trust (Punjab and Haryana High Court)

CIT (Exemptions) Vs. Lord Krishna Charitable Trust (Punjab and Haryana High Court) Section 12AA prescribes the scope and ambit of the enquiry that the CIT is authorized to carry out at the time of grant of registration to a trust or institution. The scope of the enquiry revolves around the nature of the objects and […]...

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Trust Created for Benefit of Particular Community or Religious Group cannot be granted registration U/s. 12A

M/s. Sri Visa Vadnagar Vanik Samaj Vs Director of Income Tax (ITAT Hyderabad)

Briefly stated, the institution, Sri Visa Vadnagar Vanik Samaj, has earlier stated to have filed an application on 07-10-1988, seeking registration U/s.12A of the Income Tax Act, 1961 [Act]. It seems the said application has not been accepted/rejected by the Department. For the A.Y.2003-04 the AO has rejected the claim of assessee for exe...

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