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Registration
of Charitable trust
- The trust
should get itself registered [Form No.
10A for Application] with the Commissioner of Income-tax within
one year from the date on which the trust is created.
- The Commissioner
may, in his discretion, admit an application for the registration of
any trust or institution after the expiry of the aforesaid period. Where
an application for registration is made after the aforesaid period,
the provisions of sections 11 and 12 will apply from the date of the
creation of the trust, if the Commissioner is satisfied that the person
in receipt of income was prevented from making the application with
the aforesaid period for sufficient reason. If, however, the Commissioner
is not so satisfied, provisions of sections 11 and 12 will be applicable
from the previous year in which application is made.
- Section
12AA has been inserted with effect from the assessment year 1997-98
to provide for a procedure to be followed for grant of registration
to a trust or institution. According to this, the Chief Commissioner
or Commissioner shall call for documents and information and hold enquiries
regarding the genuineness of the trust or institution. After he is satisfied
about the charitable or religious nature of the objects and genuiness
of the activities of the trust or institution, he will pass an order
granting registration and if he is not so satisfied, he will pass an
order refusing registration, subject to the condition that an opportunity
of being heard shall be provided to the applicant before an order of
refusal to grant registration is passed by the Chief Commissioner or
Commissioner and the reasons for refusal of registration shall be mentioned
in such order.
- The order
granting or refusing registration has to be passed within six months
from the end of the month in which the application for registration
is received by the Chief Commissioner or Commissioner and a copy of
such order shall be sent to the applicant. The grant of registration
shall be one of the conditions for grant of income-tax exemption.
- The accounts
of the trust should be audited (Form No. 10B) for such accounting year
in which its income exceeds Rs. 50,000 .
- From the
assessment year 1983-84 onwards, the funds of the trust should be invested
or deposited in any one or more of the modes or forms mentioned in section
11(5).
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