Commissioner Has Power To Cancel Registration of Trust




Amendment of  Section 12AA of income tax act with effect from 1st November 2019, provides that cancellation of registration can be on two grounds

i.                     The Principal Commissioner or the commissioner is satisfied that activities of trust or institution  are not genuine or are not being carried out in accordance with its objects   
AND
&
ii.                   Where a trust or an institution has been granted registration under section 12A and subsequently ,it is noticed that the trust or institution has violated requirements of any other law which was material for the purpose of achieving its objects , the principal commissioner or commissioner may, by an order in writing, cancel the registration of trust or institution  



         In Nutshell :    Section 12AA of income tax Act grant registration to a trust or an institution                                         for the purpose of availing exemption in respect of its income. Now
                                   commissioner  has power to cancel the registration of trust or institution by
                                    order in writing , if commissioner is satisfied that activities of trust or
                                    institution are not genuine and violated the compliance of such
                                    requirement of any other law which was material for the purpose of
                                    achieving its objects.


   Author
CA Pooja Shukla FCA

RYPS & ASSOCIATES LLP
Website:www.ryps.in

Contact No: 9810505547
Location: Delhi, India

Comments

  1. frnd.July 16, 2019 at 3:09 AM

    Its a good article that Every trust must check

    ReplyDelete
  2. UnknownJuly 16, 2019 at 3:12 AM

    यदि कोई ट्रस्ट अपना ऑडिट नहीं कराएगा तो उसकी मान्यता क्या रद्द हो सकती है..??

    ReplyDelete
    Replies
    1. CA Updates by CA. Pooja Shukla RYPSJuly 16, 2019 at 3:40 AM

      yes , if trust registered U/S 12A of income tax act then Audit is mandatory

      Delete
  3. UnknownJuly 16, 2019 at 3:31 AM

    This provision has been inserted to make trusts more compliant instead of being careless and misusing exemption, isn't it?

    ReplyDelete
  4. Nitin GuptaJuly 17, 2019 at 12:04 AM

    Good Job.

    ReplyDelete
  5. RishankJuly 17, 2019 at 12:38 AM

    Very informative

    ReplyDelete
  6. UnknownJuly 18, 2019 at 7:24 AM

    Trust and all need to comply and take necessary action

    ReplyDelete

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