Income-tax Section 12AA – Time-limit for registration of trusts must be strictly adhered to

SECTION 12AA OF THE INCOME-TAX ACT, 1961 – CHARITABLE OR RELIGIOUS TRUST – REGISTRATION PROCEDURE – STRICT ADHERENCE OF PRESCRIBED TIME LIMIT IN PASSING ORDER UNDER SECTION 12AA

INSTRUCTION NO.16/2015 [F.NO.197/38/2015-ITA.1], DATED 6-11-2015

Sub-section (2) of section 12AA of the Income-tax Act, 1961 prescribes that every order granting or refusing registration under clause (b) of sub-section (1) of that section shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) of the sub-section (1) thereof. Thus while processing the application under section 12AA of the Act, the time limit of six months has to be adhered to by the Commissioner of Income Tax (Exemptions). However, it has been brought to the notice of the Board that the said time limit has not been observed in some cases.

2. The undersigned is directed to convey that the aforesaid time limit of six months is to be strictly followed by the Commissioner of Income Tax (Exemptions) while passing order under section 12AA. The CCIT (Exemptions) may monitor the adherence of prescribed time limit and initiate suitable administrative action in case any laxity in adhering to the same is noticed.

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