IT revises condition of exemptions for charitable trusts and others

Patna, May 16 (UNI) The Income Tax authorites here today announced the revision of section 12A of the IT Act for availing of exemptions by any charitable or religious trusts or institutions in a simplified matter.

Announcing the government's decision, being implemented across the country with effect from June one 2007, Chief Income Tax Commissioner in Bihar Rajive Dewa told newsmen here today that under the revised clauses these trusts or institutions in respective states would now have to apply to the respective IT Commissioners within a year from the date of its creation for obtaining registration.

But where the application was made after one year, the Commissioner might condone such delay if he was satisfied with the reason for the delay, Mr Dewa said adding that, however, in such cases the exemptions under section 11 and 12 would be available not from the date of their establishment,but for the financial year during which the application for registration was made.

Accordingly, the CITC said, in order to avail the benefit of condonation of delay for earlier years,the trusts and institutions were requested to apply before June one 2007 to be able to claim the exemption of income tax from the current financial year.

UNI