How to file Form10A for Exemption u/s 12A of Income Tax Act, A.Y. 2023-24, as last date lapsed

This query is : Resolved

Manoj Thakur (Querist)
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22 January 2024 Dear sir
A trust which was registered for exemption of its income u/s 12A of income tax act, since September,1973. ITR7 for A.Y. 2023-24 was filed on the basis of registration dated September,1973. It received a notice u/s 143(1)(a) that no registration detail for exemption found in record for the A.Y. 2023-24, therefore, submit a reply. From A.Y. 2023-24 re-registration for exemption was supposed to be done by filing form 10A, but it did not apply inadvertently on time. Now it applied for A.Y. 2024-25 and it was approved. Now how to apply for exemption filing Form 10A for the A.Y. 2023-24. Or how to request A.O. for exemption for A.Y. 2023-24. Can we write in reply that the assessee could not file form 10A inadvertently for A.Y. 2023-24?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 In the scenario where the trust failed to apply for re-registration of exemption under Section 12A for A.Y. 2023-24 by filing Form 10A on time, but has successfully applied for A.Y. 2024-25, here’s how you can proceed:

### Steps to Apply for Exemption for A.Y. 2023-24 (Late Application):

1. **Prepare a Letter or Reply**:
- Draft a letter or reply to the Assessing Officer (AO) explaining the situation clearly.
- Mention that the trust inadvertently missed filing Form 10A for A.Y. 2023-24 and that it has been duly filed and approved for A.Y. 2024-25.

2. **Request for Condonation**:
- Request the AO to condone the delay in filing Form 10A for A.Y. 2023-24 due to inadvertence.
- Provide any supporting documents or explanations that demonstrate the trust's intent to maintain its tax-exempt status and compliance.

3. **Include Relevant Details**:
- Include details such as the trust's registration under Section 12A since September 1973 and any acknowledgment or approval of exemption in previous years.
- Attach a copy of the approval letter for A.Y. 2024-25 to show that the trust has rectified the oversight.

4. **Submit the Letter or Reply**:
- Submit the drafted letter or reply along with necessary documents to the AO within the specified time frame mentioned in the notice under Section 143(1)(a).

**Follow-Up and Compliance**:
- Follow up with the AO to ensure that the reply is acknowledged and processed.
- Monitor communications from the AO regarding any further actions or requirements.

### Important Considerations:
- **Timeliness**: Ensure the reply is submitted within the stipulated timeline mentioned in the notice to avoid penalties or adverse consequences.
- **Transparency**: Be transparent in explaining the reason for the delay and demonstrate the trust's compliance history and intent.
- **Professional Assistance**: If needed, consult with a tax professional or legal advisor who can assist in drafting the reply and ensuring compliance with tax regulations.

By following these steps and providing a clear explanation of the oversight in filing Form 10A for A.Y. 2023-24, the trust can request the AO to consider granting exemption under Section 12A retroactively for that assessment year.