Section 12A - Conditions for applicability of sections 11 and 12 - Income-tax Act, 1961

1 [ 2 [ Conditions for applicability of sections 11 and 12. ] 12A. 3 [ (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 form and in the prescribed manner to the 4 [ *** ] 14 [ 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, 5 [ whichever is later and such trust or institution is registered under section 12AA ] : 6 [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 7 [ *** ] 14 [ 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 8 [ *** ] 14 [ Principal Commissioner or Commissioner ] is not so satisfied :] 9 [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 form and manner to the 14 [ Principal Commissioner or Commissioner ] and such trust or institution is registered under section 12AA; ] 15 [ (ab) the person in receipt of the income has made an application for registration of the trust or institution, in a case 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 (33 of 1996)], and, subsequently, it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, in the prescribed form and manner, within a period of thirty days from the date of said adoption or modification, to the Principal Commissioner or Commissioner and such trust or institution is registered under section 12AA; ] 22 [ **** ] 23 [ (ac) notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income has made an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for registration of the trust or institution,- (i) where the trust or institution is registered under section 12A [as it stood immediately before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] or under section 12AA [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020)], within three months from the 1st day of April, 2021; (ii) where the trust or institution is registered under section 12AB 35 [ or approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 ] and the period of the said registration 36 [ or approval, as the case may be, ] is due to expire, at least six months prior to expiry of the said period; (iii) where the trust or institution has been provisionally registered under section 12AB 37 [ or provisionally approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 ] , at least six months prior to expiry of period of the provisional registration 38 [ or provisional approval, as the case may be, ] or within six months of commencement of its activities, whichever is earlier; (iv) where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11, at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative; (v) where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, within a period of thirty days from the date of the said adoption or modification; 32 [ (vi) in any other case, where activities of the trust or institution have (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought; (B) commenced and no income or part thereof of the said trust or institution has been excluded from the total income on account of applicability of sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, or section 11 or section 12, for any previous year ending on or before the date of such application, at any time after the commencement of such activities, ]] and such trust or institution is registered under section 12AB; ] 39 [Provided that where the application is filed beyond the time allowed in sub-clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time; ] 31 [ (b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year,- (i) the books of account and other documents have been kept and maintained in such form and manner and at such place, as may be prescribed; and (ii) the accounts of the trust or institution for that year have been audited by an accountant defined in the Explanation below sub-section (2) of section 288 before the specified date referred to in section 44AB and the person in receipt of the income furnishes by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars, as may be prescribed; ] 16 [ (ba) the person in receipt of the income has furnished the return of income for the previous year in accordance with the provisions of sub-section (4A) of section 139, 33 [ within the time allowed under sub-section (1) or sub-section (4) of that section ].] (c) 11 [ *** ] 12 [ (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 .] 19 [ 13 [ 24 [ **** ] 28 [Provided that the provisions of sections 11 and 12 shall apply to a trust or institution, where the application is made under- (a) sub-clause (i) of clause (ac) of sub-section (1), from the assessment year from which such trust or institution was earlier granted registration; (b) sub-clause (iii) of clause (ac) of sub-section (1), from the first of the assessment year for which it was provisionally registered: 34 [ **** ] . ] **************** NOTES:- 1. Reintroduced vide Section 5 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 Original , Inserted vide Section 6 of the Finance Act, 1972 w.e.f. 01-04-1973 Earlier , Omitted vide Section 7 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, 12A. Conditions as to registration of trusts, etc. - 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 form and in the prescribed manner to the 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 : Provided that the Commissioner may, in his discretion, admit an application for the registration of any trust or institution after the expiry of the period aforesaid; (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 twenty-five thousand rupees 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 form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. 2. Substituted vide Section 8 of the Finance Act, 2007 w.e.f. 01-06-2007 before it was read as, Conditions as to registration of trusts, etc. 3. Numbered vide Section 8 of the Finance Act, 2007 w.e.f. 01-06-2007 4. Omitted vide Section 8 of the Finance Act, 1999 w.e.f. 01-06-1999 before it was read as, Chief Commissioner or Earlier , Inserted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 5. Substituted vide Section 5 of the Finance (No. 2) Act, 1996 w.e.f. 01-04-1997 before it was read as, whichever is later 6. Substituted vide Section 7 of the Finance (No. 2) Act, 1991 w.e.f. 01-10-1991 before it was read as, Provided that the Chief Commissioner or Commissioner may, in his discretion, admit an application for the registration of any trust or institution after the expiry of the period aforesaid; 7. Omitted vide Section 8 of the Finance Act, 1999 w.e.f. 01-06-1999 before it was read as, Chief Commissioner or Earlier , Inserted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 8. Omitted vide Section 8 of the Finance Act, 1999 w.e.f. 01-06-1999 before it was read as, Chief Commissioner or Earlier , Inserted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 9. Inserted vide Section 8 of the Finance Act, 2007 w.e.f. 01-06-2007 10. Substituted vide Section 4 of the Taxation Laws (Amendment) Act, 2006 w.e.f. 01-04-2006 before it was read as, the provisions of section 11 and section 12 exceeds fifty thousand rupees in any previous year Earlier , Amended vide Section 8 of the Finance Act, 1994 w.e.f. 01-04-1995 11. Omitted vide Section 9 of the Finance Act, 2002 w.e.f. 01-04-2002 before it was read as, (c) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of sections 11 and 12 exceeds one crore rupees in any previous year, the trust or institution- (i) publishes its accounts in a local newspaper, before the due date for furnishing the return of income under sub-section (4A) of section 139; and (ii) furnishes a copy of such newspaper along with such return. Prior to its omission, Inserted vide Section 10 of the Finance Act, 2001 w.e.f. 01-04-2002 12. Inserted vide Section 8 of the Finance Act, 2007 w.e.f. 01-06-2007 13. Inserted vide Section 8 of the Finance (No. 2) Act, 2014 w.e.f. 01-10-2014 14. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, Commissioner 15. Inserted vide Section 9 of the Finance Act, 2017 w.e.f. 01-04-2018 16. Inserted vide Section 9 of the Finance Act, 2017 w.e.f. 01-04-2018 17. Inserted vide Section 10 of the Finance Act, 2020 w.e.f. 01-06-2020 18. Substituted vide Section 10 of the Finance Act, 2020 w.e.f. 01-04-2020 before it was read as, and the person in receipt of the income furnishes along with the return of income for the relevant assessment year 19. Substituted vide Section 10 of the Finance Act, 2020 w.e.f. 01-06-2020 before it was read as, Provided that 20. Substituted vide Section 10 of the Finance Act, 2020 w.e.f. 01-06-2020 before it was read as Provided further 21. Inserted vide Section 10 of the Finance Act, 2020 w.e.f. 01-06-2020 22. Omitted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, 17 [ (ac) notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income has made an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for registration of the trust or institution, (i) where the trust or institution is registered under section 12A [as it stood immediately before its amendment by the Finance (No. 2) Act, 1996] or under section 12AA, [as it stood immediately before its amendment by the Finance Act, 2020] within three months from the date on which this clause has come into force; (ii) where the trust or institution is registered under section 12AB and the period of the said registration is due to expire, at least six months prior to expiry of the said period; (iii) where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier; (iv) where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11, at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative; (v) where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, within a period of thirty days from the date of the said adoption or modification; (vi) in any other case, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought, 23. Inserted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 24. Omitted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, Provided that the provisions of sections 11 and 12 shall apply to a trust or institution, where the application is made under (a) sub-clause (i) of clause (ac) of sub-section (1), from the assessment year from which such trust or institution was earlier granted registration; (b) sub-clause (iii) of clause (ac) of sub-section (1), from the first of the assessment years for which it was provisionally registered: 25. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 before it was read as, Provided further that ] where registration has been granted to the trust or institution under section 12AA 21 [ or section 12AB ] 26. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, 20 [ Provided also ] 27. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, section 12AA 21 [ or section 12AB ] 28. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 before it was read as, 25 [ Provided that where registration has been granted to the trust or institution under section 12AA ] 29. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 before it was read as, 26 [ provided further ] 30. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 before it was read as, 27 [ section 12AA ] 31. Substituted vide Section 6 of the Finance Act, 2022 w.e.f. 01-04-2023 before it was read as, (b) where the total income of the trust or institution as computed under this Act without giving effect to 10 [ 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 18 [ before the specified date referred to in section 44AB and the person in receipt of the income furnishes by that date ] the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed .] 32. Substituted vide Section 8 of the Finance Act, 2023 w.e.f. 01-10-2023 before it was read as, (vi) in any other case, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought, and such trust or institution is registered under section 12AB; 33. Substituted vide Section 8 of the Finance Act, 2023 w.e.f. 01-04-2023 before it was read as, within the time allowed under that section 34. Omitted vide Section 8 of the Finance Act, 2023 w.e.f. 01-04-2023 before it was read as, Provided further that where registration has been granted to the trust or institution under section 12AA or section 12AB ] , 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: 29 [Provided also] 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 30 [ section 12AA or section 12AB ] 35. Inserted vide Section 6 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 36. Inserted vide Section 6 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 37. Inserted vide Section 6 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 38. Inserted vide Section 6 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 39. Inserted vide Section 6 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024