Registration certificate U/s 12A & 80G of Income TAX Act 1961:

Section 8 Company, Trust and Society can seek registration u/s 12A to claim exemption under Income Tax Act’ 1961, if certain conditions are satisfied. Section 12A deals with registration of trust and section 12AA deals with procedure for registration of trust. If the NGO does not get itself registered u/s 12A, it will not be eligible to claim ‘Benefits of Registration u/s 12A of the Income Tax Act 1961. Once the registration is granted the NGO/NPO will get be benefit under provision of Income Tax Act

Patent prosecution describes the interaction between applicants and their representatives, and a patent office with regard to a patent, or an application for a patent or any objection raised by patent office. Generally, patent prosecution can be split into pre-grant prosecution & post-grant prosecution. Both are described herein below

1.The application for registration shall be file with the jurisdictional Principal Commissioner or commissioner of Income Tax with following documents:-

a.Self-certified copy of Trust Deed or Instrument, where the trust is created under an instrument.
b.Self- certified copy of the document evidencing the creation of the trust, where the trust is created, otherwise than under an instrument;
c.Section 8 company registration approval certificate;
d.Self-certified copy of registration with Registrar of Companies (RoC) or Registrar of Firms and Societies or Registrar of Public Trusts;
e.Self-certified copy of the documents evidencing adoption or modification of the objects, if any;
f.Where the trust has been in existence for during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the trust relating to such prior year or years (but not more than 3 years immediately preceding the year);
g.Note on the activities of the trust or institution;
h.Self-certified copy of the existing order granting registration under section 12A or section 12AA, if any;
i.Self-certified copy of the order of rejection of an application for grant of registration under section 12A or section 12AA, if any.

Form No. 10A shall be furnished electronically:

i.Digital signature - if the return of income is required to be furnished under digital signature;
ii.Electronic verification code in a case not covered under clause (i);
iii.Form No. 10A shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee

Section 12AA of the Income Tax Act’ 1961 prescribes procedure for registration of Trusts or institution as follows:

a. The Principal Commissioner or Commissioner, on receipt of an application for registration of a trust or institution shall:

a.call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution; and
b.the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects and may also make such inquiries as he may deem necessary in this behalf,
c.After satisfying himself about the objects of the trust or institution and the genuineness of its activities and compliance of the requirements he;
d.shall pass an order in writing registering the trust or institution,
e.if he is not so satisfied, pass an order in writing refusing to register the trust or institution and a copy of such order shall be sent to the applicant.
f.Please note that no order shall be passed unless the applicant has been given a reasonable opportunity of being heard.

b)Deemed Registration u/s 12A:

a.As per Section 12AA(2) Every order granting or refusing registration shall be passed before the expiry of six months from the end of the month in which the application was received.

The Supreme Court on February 16’2016 held: in the case of “CIT vs. Society for The Promotion of Education, Adventure Sport & Conservation of Environment”

“S. 12AA: Non-disposal of an application for registration before the expiry of six months as provided u/s 12AA (2) results in deemed grant of registration”

The CBDT has issued Instruction No. 16 of 2015 dated 06.11.2015 in which it has taken a stern view of the fact that the time limit of six months specified in s. 12AA(2) of the Income-tax Act 1961 for passing an order granting or refusing registration u/s 12AA are not being adhered to by the Commissioners of Income Tax (Exemptions). The CBDT has directed the Chief Commissioners to monitor that the Commissioners are adhering to the time limit and to take suitable administrative action in the case of laxity.

Cancellation of Registration granted u/s 12A:

1.Registration granted u/s 12A can be cancelled in below circumstances;
2.The activities of such trust or institution are not genuine;
3.The activities are not being carried out in accordance with the objects of the trust or institution;
4.Trust’s income does not endure for the benefit of general public;
5.It is for the benefit of any particular religious community or caste;
6.Any income or property of trust is applied for the benefit of specified persons like author of trust, trustees etc.
7.Its funds are invested in prohibited modes;
8.It is however provided that registration will not be cancelled if the trust institution proves that there was reasonable cause for carrying out activities in said manner.

Following clause (ab) shall be inserted after clause (aa) of sub-section (1) of section 12A by the Finance Act, 2017, w.e.f. 1-4-2018:
“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” It means where a trust or an institution has been granted registration and subsequently it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, it shall be required to obtain fresh registration by making an application within a period of thirty days from the date of such adoption or modifications of the objects in the prescribed form and manner.

Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations, however, are not eligible for deductions under section 80G. Only donations made to prescribed funds qualify as a deduction. This deduction can be claimed by any taxpayer – individuals, company, firm or any other person.

National Defence Fund set up by the Central Government
Prime Minister’s National Relief Fund
National Foundation for Communal Harmony
An approved university/educational institution of National eminence
Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
Fund set up by a State Government for the medical relief to the poor
National Illness Assistance Fund
National Blood Transfusion Council or to any State Blood Transfusion Council
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
National Sports Fund
National Cultural Fund
Fund for Technology Development and Application
National Children’s Fund
Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6, 1993
Chief Minister’s Earthquake Relief Fund, Maharashtra
Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made during January 26, 2001, and September 30, 2001) or
Prime Minister’s Armenia Earthquake Relief Fund
Africa (Public Contributions – India) Fund
Swachh Bharat Kosh (applicable from FY 2014-15)
Clean Ganga Fund (applicable from FY 2014-15)
National Fund for Control of Drug Abuse (applicable from FY 2015-16)