Finance Act simplifies religious trust rules

Ahmedabad, May 16 (UNI) Director of Income Tax (Exemption) Gurpreet Singh today informed that religious trusts or institutions and charitable organisations will not be required to file applications for registration under Section 12A of Income Tax Act to avail exemption of income from June 1 onwards.

The Finance Act 2007 has removed this need, Mr Singh said while addressing a press conference here today.

As of now, registration under section 12A was a precondition for availing exemption of income under sections 11 and 12, and to avail benefits, an application had to be made in Form No 10A to the Commissioner of Income-Tax within a year from creation of the trust or its establishment. The Finance Act 2007 has removed the requirement of filing an application within one year, Mr Singh said.

A trust or an institution can avail benefits or condonation of delay if it files application by May 31, 2007. Otherwise, if an application is filed on or after June 1, 2007, the applicant can only claim exemption of income from the current financial year and not for earlier years, Mr Singh said.

He informed that as on May 15, 2007 there were 1193 applications pending for Ahmedabad region out of which 799 have been disposed, and only 394 are now pending.

UNI