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What is Conditions for applicability of sections 11 and 12? Section 12A of Income Tax Act 1961

Conditions for applicability of sections 11 and 12 is defined under section 12A of Income Tax Act 1961. Provision under this section is:

Section 12A of Income Tax Act "Conditions for applicability of sections 11 and 12"

12A. (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:-

(a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form91 and in the prescribed manner to the 92[Principal Commissioner or] Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12AA :

Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution,-

 

(i) from the date of the creation of the trust or the establishment of the institution if the 92[Principal Commissioner or] Commissioner is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons;

(ii) from the 1st day of the financial year in which the application is made, if the 92[Principal Commissioner or] Commissioner is not so satisfied:

Provided further that the provisions of this clause shall not apply in relation to any application made on or after the 1st day of June, 2007;

 

(aa) the person in receipt of the income has made an application for registration of the trust or institution on or after the 1st day of June, 2007 in the prescribed form93 and manner to the 94[Principal Commissioner or] Commissioner and such trust or institution is registered under section 12AA;

(b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form95 duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

(c) [***]
(2) Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made:

96[Provided that where registration has been granted to the trust or institution under section 12AA, then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year:

Provided further that no action under section 147 shall be taken by the Assessing Officer in case of such trust or institution for any assessment year preceding the aforesaid assessment year only for non-registration of such trust or institution for the said assessment year:

Provided also that provisions contained in the first and second proviso shall not apply in case of any trust or institution which was refused registration or the registration granted to it was cancelled at any time under section 12AA.]

Income Tax Act 1961

What is Income from property held for charitable or religious purposes? Section 11 of Income Tax Act 1961

What is Income of trusts or institutions from contributions? Section 12 of Income Tax Act 1961

What is Conditions for applicability of sections 11 and 12? Section 12A of Income Tax Act 1961

What is Procedure for registration? Section 12AA of Income Tax Act 1961

What is Section 11 not to apply in certain cases? Section 13 of Income Tax Act 1961

What is Special provision relating to incomes of political parties? What is Special provisions relating to voluntary contributions received by electoral trust? Section 13A and 13B of Income Tax Act 1961

What are Heads of income? What is Expenditure incurred in relation to income not includible in total income? Section 14 and 14A of Income Tax Act 1961

What is Salaries? What are Deductions from salaries? Section 15 and 16 of Income Tax Act 1961

What is Salary, perquisite and profits in lieu of salary? Section 17 of Income Tax Act 1961

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