Section 12AA

Comprehensive Overview of Section 12AA of Income Tax Act

Income Tax - Section 12AA of the Act deals with the provisions that are applicable to the registration of a trust or institution under the Act....

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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Draft Guidance Note: A Comprehensive Analysis Guide to Audit of Public Charitable Institutions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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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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Permanent Registration of Charitable Trust by filing Form No. 10AB

Income Tax - Relevant Section, Rule and Forms Section 12A – Conditions for applicability of sections 11 and 12. Sec 12AB – Prescribes the procedure framework for registration with the income-tax authorities to avail the exemption u/s 11 and 12.(introduced wef AY 2022-2023) Section 80G – Deduction in respect of donations to certain f...

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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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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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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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Improper drastic changes in Income tax provisions relating to Trusts/NGOs

Income Tax - CA Shailesh R Ghedia president of BJP Professional Cell, Mumbai has written a letter to Honorable Finance Minister, Smt. Nirmala Sitharaman and brought to her attention improper Drastic changes made in Income tax provisions relating to Charitable and Religious Trusts (Trusts/NGOs. He highlighted provisions relating to putting severe restr...

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Deferment for Approval/ Registration of Charitable Trusts & Exempt Institutions

Income Tax - Deferrement of Procedure for Approval/ Registration/Notifications of certain entities U/s 10(23C), 12AA, 35 & 80G of Income Tax Act, 1961 till 01st October,2020 The Finance Act, 2020 has introduced certain new compliance burdens on Charitable Trusts and Exempt Institutions. The Budget 2020 has amended certain provisions of the Inc...

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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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Corpus specific voluntary donations not taxable in case of unregistered trust

Nandkishor Education Society Vs ACIT (ITAT Pune) - When donations forming corpus of assessee’s trust received with specific purpose are capital in nature. ITAT held that corpus specific voluntary donations are not taxable in case of unregistered trust...

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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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Development of skill is not the purpose to fulfilling to section 2(15)

J.K. Council for Social Welfare And Information Technology Vs CIT (Exemption) (ITAT Amritsar) - J.K. Council for Social Welfare And Information Technology Vs CIT (Exemption) (ITAT Amritsar) Brief fact of the case is that the assessee-society had submitted an application for registration u/s 12A of the Act. The primary object of the assessee is that running and maintaining institutions in rural...

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CBDT circulars/ instructions are binding on revenue

Telangana Working Journalists Welfare Fund Vs ITO (Exemptions) (ITAT Hyderabad) - ITAT Hyderabad held that CIT(A)/ NFAC failed to consider circular no. F.173/193/2019-ITA-1 dated 23.04.2019 and subsequent circular No.2/2020 vide F.No.197/55/2018-ITA-I dated 03.01.2020 which are issued by CBDT and the same is binding on the revenue authorities. Accordingly, matter restored....

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Clarification regarding Form No 10AC issued till the date of this Circular

Circular No. 11 of 2022-Income Tax - (03/06/2022) - PCIT or CIT can examine if there is any specified violation by the trust or institution registered or provisionally registered under relevant clauses of sub-section (1) of section 12AB or sub¬section (1) of section 12AA....

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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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New Procedure for registration, approval U/s.10(23C), 12AA, 35 & 80G deferred

Release ID: 1622387 - (09/05/2020) - CBDT has decided that the implementation of new procedure for approval/ registration/notification of certain entities shall be deferred to 1st October, 2020. Accordingly, the entities approved/ registered/ notified under section 10(23C), 12AA, 35 and 80G of the Income-tax Act, 1961 (the Act) would b...

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Bombay Public Trusts (Second Amendment) Rules, 2019

No. BPT-1117/C.R. 59/Desk XV - (15/05/2019) - These rules may be called the Bombay Public Trusts (Second Amendment) Rules, 2019. 2. In rule 1 of the Bombay Public Trusts Rules, 1951, in sub-rule (1) i.e., in the short title and throughout the principal Rules, for the words and figures Bombay Public Trusts Rules, 1951 the words Maharashtra Publi...

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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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Recent Posts in "Section 12AA"

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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Corpus specific voluntary donations not taxable in case of unregistered trust

Nandkishor Education Society Vs ACIT (ITAT Pune)

When donations forming corpus of assessee’s trust received with specific purpose are capital in nature. ITAT held that corpus specific voluntary donations are not taxable in case of unregistered trust...

Read More

Comprehensive Overview of Section 12AA of Income Tax Act

Section 12AA of the Act deals with the provisions that are applicable to the registration of a trust or institution under the Act....

Read More
Posted Under: Income Tax |

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 |

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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Development of skill is not the purpose to fulfilling to section 2(15)

J.K. Council for Social Welfare And Information Technology Vs CIT (Exemption) (ITAT Amritsar)

J.K. Council for Social Welfare And Information Technology Vs CIT (Exemption) (ITAT Amritsar) Brief fact of the case is that the assessee-society had submitted an application for registration u/s 12A of the Act. The primary object of the assessee is that running and maintaining institutions in rural area, and enhance the poor marginalised...

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CBDT circulars/ instructions are binding on revenue

Telangana Working Journalists Welfare Fund Vs ITO (Exemptions) (ITAT Hyderabad)

ITAT Hyderabad held that CIT(A)/ NFAC failed to consider circular no. F.173/193/2019-ITA-1 dated 23.04.2019 and subsequent circular No.2/2020 vide F.No.197/55/2018-ITA-I dated 03.01.2020 which are issued by CBDT and the same is binding on the revenue authorities. Accordingly, matter restored....

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Concept of deemed registration of trust not prevailing under Income Tax Act

Domadia Raiyaben Muljibhai Charitable Trust Vs CIT(Exemption) (ITAT Surat)

ITAT Surat held that there is no specific provision in the Income Tax Act that non-deciding the registration application under Section 12AA within a period of six months there shall be a deemed registration....

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Application of income cannot be examined while granting section 12AA registration

CIT (Exemptions) Vs Mata Parvati Educational & Innovative Society (Delhi High Court)

It is settled principle of law that at the stage of granting registration u/s 12AA of the Act, ld. CIT (E) is not to examine the application of income, which is to be done by the AO on year to year basis at the time of deciding the exemption u/s 11 of the Act...

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