Section 12A:
Conditions for applicability of sections 11 and 12.
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(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 3
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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:
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Provided that where an application for registration of the trust or institution is made after the
expiry of the period aforesaid, the provisions of section 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 3
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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
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Principal Commissioner or Commissioner is not so satisfied:
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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;
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(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 4
Principal
Commissioner or Commissioner and such trust or institution is registered under section 12AA;
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(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;
(b) where the total income of the trust or institution as computed under this Act without giving
effect to the 9
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 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.
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(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, within the time allowed under
that section;
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(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:
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Provided that where registration has been granted to the trust or institution under section 12AA,
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:
Provided further 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 nonregistration 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 section 12AA.
Notes:
1. Subs. by Act 22 of 2007, s. 8, for “Conditions as to registration of trusts, etc.” (w.e.f. 1-6-2007).
2. Section 12A renumbered as sub-section (1) thereof by s. 8 ibid. (w.e.f. 1-6-2007).
3. The words “chief commissioner or” omitted by Act 27 of 1999, s. 8 (w.e.f. 1-6-1999).
4. Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).
5. Subs. by Act 33 of 1996, s. 5, for “whichever is later” (w.e.f. 1-4-1997).
6. The proviso substituted by Act 49 of 1991, s. 7, (w.e.f. 1-10-1991).
7. Ins. by Act 22 of 2007, s. 8 (w.e.f. 1-6-2007).
8. Ins. by Act 7 of 2017, s. 9 (w.e.f. 1-4-2018).
9. Subs by Act 29 of 2006, s. 4, for certain words and figures (w.e.f. 1-4-2006).
10. Ins. by Act 7 of 2017, s. 9 (w.e.f. 1-4-2018).
11. Clause (c) omitted by Act 20 of 2002, s. 9 (w.e.f. 1-4-2002).
12. Ins. by Act 22 of 2007, s. 8 (w.e.f. 1-6-2007).
13. Ins. by Act 25 of 2014, s. 8 (w.e.f. 1-10-2014).