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Sec 12a and sec 80g and fcra registration

yashsr (CA) (2285 Points)

16 September 2011

A relatively newly formed trust (its 3 year accounts for the year ended 31/03/2011 will soon be audited before 30th Sept) wants to get registered under Sec 80G and finally for FCRA? What is the procedure? I believe without Sec80G, registration for FCRA isn't possible, is this correct?

Further what is sec 12A or sec 12AA registration? Does this precede Sec 80G or does this happen after Sec80G Registration? Is this a pre-requisite for Sec 80G registration?

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9 Replies

Rajagopalakrishnan R (PARTNER) (1422 Points)
Replied 16 September 2011

The first step for any charitable institution is to get itself registered under sec 12A with the Commissioner. Definitely 80G would be granted only if the trust is 12A registered. 12A also has a limitation period before which it should apply for registration - presently one year from date of creation of trust. Delays can be condoned by the Commissioner on proving good reasons. But after the amendment some years back, commissioner does not have power to grant retrospective 12A registration - even if he condones the delay. Therefore the periods prior to the financial year in which the 12A application is made would be exposed for the trust in that it would be assessed as an AOP - if no definite shares are prescirbed then at maximum Marginal rate ( of course if it has net taxable income above threshold limit).

FCRA registration is an independent process with the Ministry of Home, Govt of India, and has technically nothing to do with 12A or 80G. But now a days FCRA is granted only if the trust has atleast 12A registration. 80G is not being insisted upon.

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(Guest)

I would like to correct only thing of Mr. rajagopal

As per amended provisions trust is required to be registered u/s 12AA. Trust can be registered at any time after creation.

Thanks

https://taxbykk.blogspot.com/

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yashsr (CA) (2285 Points)
Replied 17 September 2011

So now, a trust is registered u/s 12AA and not 12A and anytime after creation of trust, is this correct?

(Guest)

yes it is correct

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yashsr (CA) (2285 Points)
Replied 18 September 2011

A trust is registered and it has its registration certificate with Registration no. something like E-48322 and the certificate is in marathi. The heading of the certificate being 'nondneeche pramaanpatra'. Now, is this what is meant by registration u/s 12AA or is this different?

If this is not the registration u/s 12AA, then what is and what is the procedure?