India - Income Tax Act 2010 - Saarc

1.133 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 12Ainstitution or an educational institution, to any person referred to in clause (a) orclause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3) of section 13,shall be deemed to be income of such trust or institution derived from propertyheld under trust wholly for charitable or religious purposes during the previousyear in which such services are so provided and shall be chargeable to incometaxnotwithstanding the provisions of sub-section (1) of section 11.Explanation.—For the purposes of this sub-section, the expression “value” shallbe the value of any benefit or facility granted or provided free of cost or atconcessional rate to any person referred to in clause (a) or clause (b) or clause(c) or clause (cc) or clause (d) of sub-section (3) of section 13.]99[(3) Notwithstanding anything contained in section 11, any amount of donationreceived by the trust or institution in terms of clause (d) of sub-section (2) ofsection 80G 1 [in respect of which accounts of income and expenditure have notbeen rendered to the authority prescribed under clause (v) of sub-section (5C) ofthat section, in the manner specified in that clause, or] which has been utilisedfor purposes other than providing relief to the victims of earthquake in Gujarator which remains unutilised in terms of sub-section (5C) of section 80G and nottransferred to the Prime Minister’s National Relief Fund on or before the 31st dayof March, 2 [2004] shall be deemed to be the income of the previous year and shallaccordingly be charged to tax.]3[ 4 [Conditions for applicability of sections 11 and 12.]512A. 6[(1)] 7 The provisions of section 11 and section 12 shall not apply inrelation to the income of any trust or institution unless the followingconditions are fulfilled, namely:—(a) the person in receipt of the income has made an application forregistration of the trust or institution in the prescribed form 8 and in99. Inserted by the Taxation Laws (Amendment) Act, 2001, w.r.e.f. 3-2-2001.1. Inserted by the Finance Act, 2002, w.r.e.f. 3-2-2001.2. Substituted for “2003” by the Finance Act, 2003, w.r.e.f. 3-2-2001. Earlier “2003” wassubstituted for “2002” by the Finance Act, 2002, w.r.e.f. 3-2-2001.3. Reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier,section 12A was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect fromthe same date. Original section 12A was inserted by the Finance Act, 1972, w.e.f. 1-4-1973.4. Substituted for the heading “Conditions as to registration of trusts, etc.” by the Finance Act,2007, w.e.f. 1-6-2007.5. See Circular No. 143, dated 20-8-1974 and CBDT Instruction, dated 9-2-1978. For details,see Taxmann’s Master Guide to Income-tax Act.6. Inserted by the Finance Act, 2007, w.e.f. 1-6-2007.7. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.8. See rule 17A and Form No. 10A for form of application for registration of charitable/religious trust, and the necessary accompanying documents, viz., 1. Original copy ofinstrument creating the trust/institution, i.e., trust deed, with one copy thereof, wheretrust/institution is created under an instrument. Certified copy in lieu of original copy oftrust deed can also be accepted by the Commissioner. 2. Documents evidencing thecreation of trust/institution, with one copy thereof, where trust/institution is createdotherwise than under an instrument. 3. Where the trust/institution has been in existenceduring any year(s) prior to financial year in which application for registration is made, theapplication should be accompanied by two copies of accounts of trust/institution relatingto prior year or years (not being more than 3 years immediately preceding the year inwhich application is made) for which such accounts have been made up.