It seems like you’re referring to the registration under section 12A of the Income Tax Act in India. Section 12A of the Income Tax Act, 1961, deals with the registration of charitable or religious trusts or institutions to avail tax exemptions.
Here are the key points related to 12A registration:
- Applicability:
Charitable and religious trusts or institutions can apply for registration under section 12A to become eligible for exemptions under sections 11 and 12 of the Income Tax Act.
- Benefits:
Once registered under section 12A, the income of the trust or institution, if applied for charitable or religious purposes, is exempt from income tax.
- Application Procedure:
- The application for registration under section 12A is to be made to the Commissioner of Income Tax (Exemption) in Form 10A.
- The application should be accompanied by the trust deed, details of trustees, and other relevant documents.
- Conditions for Approval:
- The trust or institution should be created for genuine charitable or religious purposes.
- The activities of the trust should not involve any profit motive.
- The trust should not be for the benefit of any particular religious community or caste.
- Time Limit for Application:
The application for registration under section 12A should be made within one year from the date of creation of the trust or institution.
- Validity of Registration: Once registered under section 12A, the registration is generally valid unless it is canceled by the Commissioner for reasons specified in the Act.
- Annual Compliance: Even after registration, the trust or institution needs to comply with certain requirements, such as filing annual returns in Form 10B and maintaining proper books of accounts.
It’s important to note that tax laws can be subject to amendments, and it’s advisable to consult with a webetax professional or webetax legal expert for the most up-to-date and accurate information based on the current tax regulations.