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Benefits of registration Under Section 12AA of Income Tax Act 1961

Benefits of registration Under Section 12AA of Income Tax Act 1961

BENEFITS OF REGISTRATION UNDER SECTION 12AA OF INCOME TAX ACT 1961

As per under section 12 AA of the Income Tax Act, 1961 Trust, Society and companies u/s 8 are claim deductions on amount of Donation received by them. For this purpose all these entities have to satisfy certain conditions so that they can avail ‘Benefits of Registration u/s 12A of the Income Tax Act’1961’

Rule 17A of the Income Tax Rules 1962 prescribed that the Application for 12 A for Registration is made in Form 10A.

DOCUMENTS REQUIRED

  1. Self-attested copy of Trust Deed
  2. Self-attested copy of Registration with Registrar of Companies or Registrar of Firms & Societies or Registrar of Public Trusts
  3. Self- attested copy of documents which evidencing adaption/ modification of objects.
  4. Self-attested copy of Annual Accounts for the period immediately preceding 3 years from the date of application filing
  5. Specification about the Activities or Objectives of the Trust or Institution

Note:

Form 10 A shall be furnished electronically by using  

  • Digital Signature
    OR
  • Electronic Verification Code
    Form 10 A shall be furnished by a person who is authorized to verify Income Tax Return under section 140

PROCEDURE FOR FILING APPLICATION

  1. After receipt of application of registration Principal Commissioner shall seeks information or documents of Trust or Institution as he thinks necessary to satisfy himself for granting approval.
  2. After satisfying himself about the genuineness of activities or objectives of Trust
    He shall pass an order in writing registering the Trust
    OR
    If he is not satisfied then he shall pass an order in writing with respect of refusing the registration of Trust u/s 12A

    And in both cases copy of order shall be sent to the applicant.

DEEMED REGISTRATION

Whether the order is for granting or refusing of registration should be passed before the expiry of 6 months from the end of month in which application is filed otherwise it should be treated as Deemed Registration.

CANCELLATION OF REGISTRATION

Granted certification shall be cancelled in following circumstances:

  1. If Principal Commissioner believes that activities of such Trust are not genuine.
  2. Activities are not carried out by Trust accordance with the objects mentioned in Trust Deed.
  3. Income earned by the Trust is not endure for the benefit of general public.
  4. It provides benefit to specific religion, community or caste.
  5. If its funds are invested in prohibited sources.

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25 Mar

Neha Sahni
Neha Sahni

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