Ø
Requirement of fresh
registration
Budget 2017 proposed to amend
section 12A so as to provide that where a trust or an institution has been
granted registration under section 12AA or has obtained registration at any
time under section 12A [as it stood before its amendment by the Finance (No. 2)
Act, 1996] and, subsequently, it has adopted or undertaken modifications of the
objects which do not conform to the conditions of registration, it shall be
required to obtain fresh registration by making an application within a period
of thirty days from the date of such adoption or modifications of the objects
in the prescribed form and manner.
The existing provisions of
section 12A of the Act provide for conditions for applicability of sections 11
and 12 in relation to the benefit of exemption in respect of income of any trust
or institution.
Further, the provisions of
section 12AA of the Act provide for registration of the trust or institution
which entitles them to the benefit of sections 11 and 12. It also provides the
circumstances under which registration can be cancelled, one such circumstance
being satisfaction of the Principal Commissioner or Commissioner that its
activities are not genuine or are not being carried out in accordance with its
objects subsequent to grant of registration.
However, at present there
is no explicit provision in the Act which mandates said trust or institution to
approach for fresh registration in the event of adoption or undertaking
modifications of the objects after the registration has been granted.
Ø
Time -limit of
submission of return of income
Budget 2017 proposed to
further amend section 12A so as to provide for further condition that the
person in receipt of the income chargeable to income-tax shall furnish the
return of income within the time allowed under section 139 of the Act.
As per the existing provisions
of said section, the entities registered under section 12AA are required to
file return of income under sub-section (4A) of section 139, if the total
income without giving effect to the provisions of sections 11 and 12 exceeds
the maximum amount which is not chargeable to income-tax. However, there is no
clarity as to whether the said return of income is to be filed within time
allowed u/s 139 of the Act or otherwise.
These amendments are
clarificatory in nature.
These amendments will take
effect from the previous year 2017-18 and will, accordingly, apply in relation
to assessment year 2018-19 and subsequent years.
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