How to register with Income tax under Section 12A by NGO, Section 25 Company, Charitable Trust and Society? Is it necessary to Register?

The Legal provision for granting exemption to a public charitable Trust, a company registered under section 25 of the Companies Act, or a society registered under the Societies Registration Act, 1860, or any other institution is contained in one or more of the following sections of Income Tax Act:-

 

 

 

(i) Section 2(15);
(ii) Section 2(24) (iia);
(iii) Section 10
(iv) Sections 11,12, 12A, 12AA and 13; and
(v) Sections 35(1)(ii) and 35(i)(iii).

As per Section 12A of Income tax act  the provisions of section 11 and section 12, regarding exemption of income, will not be applicable to an institution etc., unless an application for its registration is made to the CIT/DIT(E) within a period of one year from the date of its creation. The Commissioner of Income Tax (CIT)/DIT (Exemptions) may condone the delay for good and sufficient reason.
 

The application for registration has to be made in Form no. 10A accompanied by the following documents;-
(i) Copy of the instrument by way of which the trust or institution etc. is created; and
(ii) If it existed in years prior to the year in which application is made, accounts of the prior years (not exceeding three years)
 
On receipt of the application, the Commissioner of Income Tax (CIT)/DIT (Exemptions) has to pass an order either registering the trust etc. or rejecting the application. The registration may be rejected on the ground that the trust or its activities are not genuine. Such an order has to be passed within a period of six months from the end of the month in which the application is made.

 

The law regarding conditions precedent for registration, so far as merits are concerned, is written briefly and in simple language, namely, that the Commissioner of Income Tax (CIT)/DIT (Exemptions) should satisfy himself about:-


(i) objects of the trust etc; and
(ii) genuineness of its activities.
The object (s) of the trust etc. should constitute religious or charitable purpose (s) u/s 2(15) and this aspect will be enquired into. The ‘genuineness of activities’ can be inferred only if the trust/institution etc. has started to carry out the purpose (s), mentioned in the object clauses of instrument of its creation, at the time when application is made.
 

Section 12A(b) also requires that if income of a trust etc. in any previous year exceeds specified limit before giving effect to provisions of section 11 and section 12, then its accounts are required to be audited by an accountant and his report in Form no. 10B has to be filed
along with the return of income.

PAN

Income Tax PAN FAQ, Answers & Guidance

Tax Audit

What is the turn over limit for tax audit? Who needs to get audited the accounts under section 44AB?

Taxation on Charitable Trust and NGO

What is authority structure in case of Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions?

What is the definition of Charitable Purpose? Section 2(15) of Income Tax Act- Relief to poor, Education, Medical Relief, other public utility services- Latest amendments

How to register with Income tax under Section 12A by NGO, Section 25 Company, Charitable Trust and Society? Is it necessary to Register?

What is approval u/s 80G(5)? Is it necessary for a charitable Institution? How to apply for it? What is the use of approval u/s 80G(5) for Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions?

Is exemption of Income to NGO, Section 25 Company, Charitable Trust and Society can forfeiture? Provision in Section 13 for forfeiture of Exemption

What is notification u/s 35(1)(ii)/(iii)? How to apply by scientific research association, a university, college or other institutions? What is the use?

What are the modes and forms of Investment specified u/s 11(5) in the case of Charitable Trust, NGO, Charitable Society, Section 25 Companies and Charitable entities

How Charitable Institutions are assessed for Income Tax? Accumulation of surplus and utilization of NGO, Section 25 Company, Charitable Trust and Society

Who are interested persons in the case of Charitable Trust, NGO, Charitable Society, Section 25 Companies and Charitable entities? Who are relatives? List of interested persons and relatives

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap