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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 10542 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 1425 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 7659 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 5679 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 16557 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 6951 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 1401 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 5172 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 9156 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 9528 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 462 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 471 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 327 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 1596 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 303 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 15774 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 125850 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 7203 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 70866 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 29016 Views 3 comments Print

Trust having ‘medical relief’ object eligble for exemption even if they incidentally carry on a commercial activity

August 29, 2012 8130 Views 0 comment Print

After examination of the activities of the assessee samiti and after considering CBDT Circular No. 11/2008, dated 19-12-2008, it is found that the admitted facts of the case under consideration are that the assessee-trust is carrying on the activities in respect of medical relief. It is found that Samiti/institution/entities whose object is ‘education’ or ‘medical relief’ would continue to be eligble for exemption as charitable institutions even if they incidentally carry on a commercial activity.

In cases where principle of mutuality applicable, registration u/s. 12AA cannot be cancelled simply by relying on first proviso to S. 2(15)

July 29, 2012 2005 Views 0 comment Print

The assessee is a club and all its activities are restricted to among its members and, therefore, ‘principle of mutuality’ applies in the instant case. It has been clarified by the Board vide its Circular No. 11 of 2008, dated 19-12-2008 that in such cases where principle of mutuality are applicable, registration cannot be cancelled simply by relying on the first proviso to section 2(15). No where it has been brought on the record that the activities of the assessee are not governed by ‘principles of mutuality’ or it has been dealing with non-members. Thus, from this aspect also first proviso does not apply to the instant case. In view of the above, the cancellation of registration under section 12AA(3) was not tenable.

Exemption to Charitable institution cannot be denied on the basis of a hypothetical assumption of an event that will happen in future

June 29, 2012 897 Views 0 comment Print

The whole case revolves upon the lease deed dated 24.12.2004 executed between the lessor, Smt. Sudha Saraswat and the assessee-society through which the land measuring 5150.48 sq. meter was let out to assessee society for 30 years. Copy of the lease deed is appended with the assessment order. The assessee paid Rs. 10,000/- as premium and agreed to pay Rs. 150/- per month as rent of the demised property, i.e., 1800/- per annum.

Once CIT grants registration u/s 12AA,He can not cancel the same if activities are in accordance with objects

June 27, 2012 744 Views 0 comment Print

Under section 12AA, the Commissioner is empowered to grant or refuse the registration and after granting registration, would be empowered to cancel and that too, only on two conditions laid down under section 12AA(3) of the Act. Whether the income derived from such transaction would be assessed for tax and also whether the trust would be entitled to exemption under section 11 are entirely the matters left to the assessing officer to decide as to whether it should be assessed or exempted.

Benefits granted to a charitable institution cannot be extended to its substantially amended objects

May 22, 2012 733 Views 0 comment Print

Registration granted under section 12A, on 12th February 1996, and the benefits flowing therefrom, cannot be extended to the amended objects of the society unless the DIT examines the same and comes to a conclusion that the registration under section 12A, can be extended to the revised objects, memorandum and by-laws. It would be illogical to hold that once an institution is registered under section 12A, no matter whatever may be the changes in the objects, rules and regulations, for any number of times, the institution should be given the benefit of section 11 to 13 of the Act, in view of the original registration granted under section 12A.

Registration of institution u/s 12AA cannot be cancelled if its receipts from trade, commerce, etc., exceeds Rs.10Lakhs/Rs.25 Lakhs limit u/s 2(15)

May 4, 2012 1478 Views 0 comment Print

If in any year, the gross receipts of the Institution exceeds Rs. 10 lakhs or Rs. 25 lakhs, as the case may be, then in that year, the Assessing Officer is empowered to examine the allowability of exemption u/s 11 but the same has no effect on granting the registration u/s 12AA of the Act.

Holding of classes not mandatory to qualify as educational institution

April 7, 2012 861 Views 0 comment Print

Assessee has filed writ petition against order passed by the Director General of Income Tax (Exemptions), for denying them exemption under Section 10(23C)(vi) of the Income Tax Act, 196, on the ground that the aforesaid institute was not directly imparting education and had not employed teachers who were teaching or giving lectures to the students.

S. 12AA CIT can cancel registration even after grant – High profit Ratio cannot be ground for rejection

March 11, 2012 1235 Views 0 comment Print

according to the provisions of sub-section (3) to Section 12AA, even after grant of registration, if the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, he is empowered to pass an order in writing canceling the registration of such trust or institution after giving the assessee a reasonable opportunity of being heard.

While processing application u/s. 12AA of the Act Commissioner should not act as an Assessing Authority

October 13, 2011 1258 Views 0 comment Print

CIT Versus Baba Deep Singh Educational Society (P & H High Court)- Jurisdiction of the Commissioner at the stage of processing application under Section 12AA of the Act is limited regarding whether the activities are genuine and in consonance with the objects of the trust or institution and where education is being imparted as per the rules and the factum of the establishment and running of schools is not disputed the same was a genuine activity and the enquiry regarding genuineness of the activities cannot be stretched beyond this.

Income Tax provisions related to Charitable Trust

July 12, 2010 206960 Views 28 comments Print

Income derived from property held under trust or of an institution (‘trust’) wholly for charitable/religious purpose is exempt, if 85% of the income is spent on the objects of the trust, during the year. If the amount spent is less than 85% of the income, the shortfall is taxable, unless the trust has complied with the conditions mentioned in the table below.

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