Section 12AA

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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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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Benefits of Registration u/s 12A of Income Tax Act, 1961

Income Tax - Section 2(15) defines Charitable Purpose and sections 11, 12, 12A, 12AA and 13 of the Income –tax Act, are the main sections that deal with scheme of taxation exemption in respect of income of charitable or religious trusts/institution....

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Budget 2010-11: Power of Commissioner to Cancel registration obtained by trust under section 12A

Income Tax - Section 12AA provides the procedure relating to registration of a trust or institution engaged in charitable activities. Section 12AA(3) currently provides that if the activities of the trust or institution are found to be non-genuine or its activities are not in accordance with the objects for which such trust or institution was establis...

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Application U/s. 12AA cannot be rejected merely on account of extraordinary powers with managing trustee

ACE Vision Educational Vs CIT(Exemption), (ITAT Chandigarh) - Registration application u/s 12AA cannot be rejected merely on account of extraordinary powers with the managing trustee to appoint or remove other trustees and also to nominate their successor. ...

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Registration U/s. 12AA cannot be denied for registration of society twice with Registrar of Societies

CIT (Exemptions) Vs Shri Mahavir Jain Society (Regd.)( Punjab and Haryana High Court) - A persual of rule 17A shows that the only requirement to seek registration under section 12A is to furnish documents evidencing creation of trust or establishment of institute in original, which assessee had duly furnished in the form of trust deed, therefore, denial of registration on the ground of...

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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 cas...

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Registration U/s.12AA cannot be cancelled for mere failure to communicate amendment in trust deed

Paramount Charity Trust Vs CIT (ITAT Ahmedabad) - ITAT held that If amended objects of the trusts are not non-genuine and charitable in nature, then mere failure on the part of the assessee to intimate this amended objects to the department would not goad the ld. Commissioner to cancel registration....

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Mere receipt in excess of limit in proviso to section 2(15) would not result in cancellation of registration U/s. 12AA

M/s Mumbai Port Trust Vs DIT (Exemption) (ITAT Mumbai) - This appeal by assessee under section 253 of income tax act is directed against the order of Director of Income tax (Exemptions) Mumbai, dated 22 November 2011 for assessment year 2009-10. The assessee has raised following grounds of appeal...

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No mandatory Trust registration cancellation u/s 12AA for Turnover

Circular No. 21/2016-Income TAx - (27/05/2016) - It is clarified that it shall not be mandatory to cancel the registration already granted u/s 12AA to a charitable institution merely on the ground that the cut-off specified in the proviso to section 2(15) of the Act is exceeded in a particular year without there being any change in the nature of a...

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CBDT to CIT(E)- Pass order U/s. 12AA within prescribed time or face action

Instruction No. 16/2015 - (06/11/2015) - Instruction No. 16/2015 Sub-section (2) of Section 12AA of the Income-tax Act 1961 prescribes that every order granting or refusing registration under clause (b) of sub-section (I) of that Section shall be passed before the expiry of six months from the end of the month in which the application was ...

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Section 12AA’s Popular Posts

Recent Posts in "Section 12AA"

Application U/s. 12AA cannot be rejected merely on account of extraordinary powers with managing trustee

ACE Vision Educational Vs CIT(Exemption), (ITAT Chandigarh)

Registration application u/s 12AA cannot be rejected merely on account of extraordinary powers with the managing trustee to appoint or remove other trustees and also to nominate their successor. ...

Read More

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...

Read More
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Registration U/s. 12AA cannot be denied for registration of society twice with Registrar of Societies

CIT (Exemptions) Vs Shri Mahavir Jain Society (Regd.)( Punjab and Haryana High Court)

A persual of rule 17A shows that the only requirement to seek registration under section 12A is to furnish documents evidencing creation of trust or establishment of institute in original, which assessee had duly furnished in the form of trust deed, therefore, denial of registration on the ground of registration of the society twice with ...

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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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Registration U/s.12AA cannot be cancelled for mere failure to communicate amendment in trust deed

Paramount Charity Trust Vs CIT (ITAT Ahmedabad)

ITAT held that If amended objects of the trusts are not non-genuine and charitable in nature, then mere failure on the part of the assessee to intimate this amended objects to the department would not goad the ld. Commissioner to cancel registration....

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Mere receipt in excess of limit in proviso to section 2(15) would not result in cancellation of registration U/s. 12AA

M/s Mumbai Port Trust Vs DIT (Exemption) (ITAT Mumbai)

This appeal by assessee under section 253 of income tax act is directed against the order of Director of Income tax (Exemptions) Mumbai, dated 22 November 2011 for assessment year 2009-10. The assessee has raised following grounds of appeal...

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Tribunal cannot direct Registration U/s. 12AA in absence of satisfaction of Registering Authority

CIT Vs A.R. Trust (Allahabad High Court)

CIT Vs A.R. Trust (Allahabad High Court) Section 12 AA of the Act provides that the Registering Authority after satisfying himself about the objects of the Trust and genuineness of its activities shall pass an order in writing for registration of the Trust or to refuse the registration. Therefore, satisfaction of the Registering Authority...

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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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Registration U/s. 12AA can’t be denied merely because Few Objects of Society are meant for benefit of Members

Commissioner of Income Tax-Exemption, Vs. Vyapar Sangh Court Road, Hanumangarh Junction

In this Income-tax Appeal filed under Section 260-A of the Income Tax Act, 1961, the appellant Income Tax Department, has challenged the order dated 24.05.2017 passed by Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur in ITA No.336/Jodh/2016....

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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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