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], 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, ]] 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 by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, section 12A was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. Original section 12A was inserted by the Finance Act, 1972, w.e.f. 1-4-1973. 2. Substituted for the heading Conditions as to registration of trusts, etc. by the Finance Act, 2007, w.e.f . 1-6-2007. 3. Inserted by the Finance Act, 2007, w.e.f. 1-6-2007. 4. Words Chief Commissioner or omitted by the Finance Act, 1999, w.e.f. 1-6-1999. Earlier the quoted words were inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 5. Substituted for whichever is later by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 6. Substituted for the following by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991: 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. Words Chief Commissioner or omitted by the Finance Act, 1999, w.e.f. 1-6-1999. Earlier the quoted words were inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 8. Words Chief Commissioner or omitted by the Finance Act, 1999, w.e.f. 1-6-1999. Earlier the quoted words were inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 9. Inserted by the Finance Act, 2007, w.e.f. 1-6-2007. 10. Substituted for the provisions of section 11 and section 12 exceeds fifty thousand rupees in any previous year by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. Earlier the quoted words were amended by the Finance Act, 1994, w.e.f. 1-4-1995. 11. Omitted by the Finance Act, 2002, w.e.f. 1-4-2002. Prior to its omission, clause (c), as inserted by the Finance Act, 2001, w.e.f. 1-4-2002, read as under : (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. 12. Inserted by the Finance Act, 2007, w.e.f.1-6-2007. 13. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of October, 2014 14. Substituted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013 15. Inserted vide THE FINANCE ACT, 2017 with effect from 1st day of April, 2018 16. Inserted vide THE FINANCE ACT, 2017 with effect from 1st day of April, 2018 17. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 18. Substituted vide Finance Act, 2020 dated 27-03-2020 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 Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as, Provided that 20. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as Provided further 21. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 22. Omitted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 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, and such trust or institution is registered under section 12AB; ] 23. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 24. Omitted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 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 THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 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 THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as 20 [ Provided also ] 27. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as section 12AA 21 [ or section 12AB ] 28. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 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 THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 before it was read as 26 [ provided further ] 30. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 before it was read as 27 [ section 12AA ] 31. Substituted vide 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 THE FINANCE ACT, 2023 dated 31-03-2023 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 THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, within the time allowed under that section 34. Omitted vide THE FINANCE ACT, 2023 dated 31-03-2023 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