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Section 12AA

Section 12AA of Income-Tax Act, 1961 deals with Procedure for Registration of a Charitable Trust or institution

Latest Articles

Understanding Section 43B(h) | Impact on MSME Payments

Income Tax : Understand the impact of Section 43B(h) on businesses: Learn about deductions for MSME payments and the importance of timely payme...

April 2, 2024 10917 Views 3 comments Print

Eligibility and process of Registration of Charitable Trust in India

Income Tax : Learn the eligibility criteria and step-by-step process for registering a charitable trust in India. Discover the significance, ad...

March 18, 2024 2061 Views 0 comment Print

Assessment of Charitable and Religious Trusts and Institutions

Income Tax : Analyzing the complexities of non-profit sectors globally, this guide on Assessment of Charitable and Religious Trusts and Institu...

February 2, 2024 8088 Views 0 comment Print

Section 115TD(3) of Income Tax Act Nightmare for Charitable Trusts

Income Tax : Explore the implications of Income Tax Act's Section 115TD(3) introduced by the Finance Act 2022 on charitable trusts. Learn about...

December 17, 2023 6222 Views 0 comment Print

Tax Treatment of Gifts Received By an Individual or HUF: Rules & Exceptions

Income Tax : Tax treatment of gifts for individuals and HUFs, covering monetary, immovable, and movable property, exceptions, and COVID-19 reli...

November 3, 2023 16710 Views 0 comment Print

Latest News

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 Sitharam...

November 3, 2022 6978 Views 1 comment Print

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 utilizati...

August 9, 2022 1425 Views 0 comment Print

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 re...

December 1, 2021 5202 Views 0 comment Print

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 S...

April 30, 2021 9165 Views 1 comment Print

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 Incom...

May 9, 2020 9543 Views 1 comment Print

Latest Judiciary

Claim of application of income for charitable purpose u/s 11 & 12 cannot be denied on mere technicalities

Income Tax : Delve into the case of Asha Modern Educational Society challenging the denial of income application for charitable purpose under S...

March 20, 2024 492 Views 0 comment Print

Even if Form 10B is filed at a later stage, Section 11 exemption cannot be denied

Income Tax : Anjana Foundation Vadodara vs A.O.: Ahmedabad ITAT clarifies that advance filing of Form 10B isn't mandatory for claiming exemptio...

March 20, 2024 582 Views 0 comment Print

Political party required to furnish return within due date u/s 139 for claiming exemption u/s. 13A: ITAT Delhi

Income Tax : ITAT Delhi held that in order to claim exemption under Section 13A of the Income Tax Act by the political party it is necessary to...

March 11, 2024 375 Views 1 comment Print

ITAT Clarifies Section 80G Requirements: 6-Month Application Rule

Income Tax : ITAT Pune allows appeal by Kailash Math Trust against CIT decision, stating application for 80G approval filed within prescribed t...

March 10, 2024 1944 Views 0 comment Print

Microfinancing activity by charging exorbitant interest not charitable in nature: ITAT Bangalore

Income Tax : ITAT Bangalore held that microfinancing activities by charging exorbitant interest cannot be considered to be charitable purpose i...

March 7, 2024 345 Views 0 comment Print

Latest Notifications

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

Income Tax : PCIT or CIT can examine if there is any specified violation by the trust or institution registered or provisionally registered und...

June 3, 2022 15897 Views 0 comment Print

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

Income Tax : CBDT issues Notification no. 19/2021 dated 26/03/2021 pertaining to procedure for registration of fund/ trust/charitable instituti...

March 26, 2021 126345 Views 1 comment Print

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

Income Tax : CBDT has decided that the implementation of new procedure for approval/ registration/notification of certain entities shall be def...

May 9, 2020 7206 Views 0 comment Print

Bombay Public Trusts (Second Amendment) Rules, 2019

Income Tax : These rules may be called the Bombay Public Trusts (Second Amendment) Rules, 2019. 2. In rule 1 of the Bombay Public Trusts Rules,...

May 15, 2019 71046 Views 5 comments Print

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

Income Tax : 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 inco...

April 23, 2019 29190 Views 3 comments Print

Its inhuman to collect money for admission in medical college

August 14, 2014 606 Views 0 comment Print

Hon’ble Cochin ITAT has in the case of M/s Sree Anjaneya Medical Trust while disposing off the appellant’s plea for registration u/s 12A has held that collection of money for admission of students in the professional colleges is not only inhuman but also against the scheme of the Constitution of sec 12A.

Applicability to earlier years of registration granted to a trust or institution

July 17, 2014 8133 Views 0 comment Print

The existing provisions of section 12A of the Act provide that a trust or an institution can claim exemption under sections 11 and 12 only after registration under section 12AA has been granted. In case of trusts or institutions which apply for registration after 1st June, 2007, the registration shall be effective only prospectively.

Budget 14- Cancellation of registration of the trust or institution in certain cases

July 17, 2014 4751 Views 0 comment Print

The existing provisions of section 12AA of the Act provide that the registration once granted to a trust or institution shall remain in force till it is cancelled by the Commissioner. The Commissioner can cancel the registration under two circumstances: (a)     the activities of a trust or institution are not genuine, or; (b)     the activities […]

Budget 2014 – Exemption u/s. 10 not allowable to trust who opted for special dispensation U/s. Sections 11, 12 & 13

July 13, 2014 5396 Views 0 comment Print

Rationalisation of taxation regime in the case of  charitable trusts and institutions The existing provisions of section 11 of the Act provide for exemption to trusts or institutions in respect of income derived from property held under trust and voluntary contributions subject to various conditions contained in the said section. The primary condition for grant […]

Charity from loan taken is Not a valid reason for denying sec 12AA registration

June 10, 2014 1058 Views 0 comment Print

Merely because and institution has borrowed funds, one cannot conclude that the objects of such institution cannot be charitable. The assessee may borrow funds for fulfillment of its objects, therefore, we have stated in framing words, the mere facts of borrowing cannot be against the assessee at the stage of grant of registration.

Charitable & religious trust eligible for Exemption U/s. 11 & 12 if not benefiting any specific religious community- SC

March 19, 2014 17511 Views 0 comment Print

In the case of CIT vs. Dawoodi Bohara Jamat SC has held that the respondent-trust is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that Section 13(1)(b) of the Act would be attracted to the respondent-trust and thereby, it would be eligible to claim exemption under Section 11 of the Act.

Denial of Registration u/s 12A for mere unsubstantial activities not justified

December 20, 2013 3277 Views 0 comment Print

In view of the above, we see no reason to interfere with the impugned order passed by the ITAT. No question of law, much less substantial question of law arises in the present Tax Appeal. Hence, the present Tax Appeal deserves to be dismissed and is accordingly dismissed.

Registration U/s. 12AA cannot be refused for mere non commencement of charitable or religious activity by Trust

May 2, 2013 2903 Views 0 comment Print

The preponderance of the judicial opinion of all the High Court including this Court is that at the time of registration under Section 12AA of the Income Tax Act, which is necessary for claiming exemption under Section 11 and 12 of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under Section 12AA cannot be refused, on the ground that the Trust has not yet commenced the charitable or religious activity.

No Deemed Registration of Trust on expiry of Time-limit to pass decision on trust’s registration U/s. 12AA

May 1, 2013 1767 Views 0 comment Print

Time frame under sub-section (2) of Section 12AA of Income Tax Act is only directory. Tribunal was not right in holding that since the application for registration has not been disposed off within the limitation of six months, the Assessee Company was deemed to have been granted registration under Section 12AA of the Act.

Six Month Time limit for disposal of trust registration application is directory

April 27, 2013 1552 Views 0 comment Print

Period of six months as provided in Sub-section (2) of Section 12AA is not mandatory. Though the word ‘shall’ has been used but it is well known that to ascertain whether a provision is mandatory or not, the expression ‘shall’ is not always decisive. It is also well known that whether a statutory provision is mandatory or directory has to be ascertained not only from the wording of the statute but also from nature and design of the Statute and the purpose which it seeks to achieve.

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May 2024