Section 12AA provides that where any application has been made on or after 1-6-2007, the provisions of section 11 & 12 is beneficially triggered in relation to the income of such trust or institution for the assessment year immediately following the financial year in which such application is made.
Procedure
The Commissioner, on receipt of an application for registration of trust shall within the expiry of six months from the end of the month in which application was received for registration shall move along with in the under listed manner :
• The Commissioner may call upon for necessary documents in order to satisfy himself about the genuineness of activities of the trust and can also make necessary inquiries.
• After being satisfied about the nature, objects and the genuineness of the trust or institution he may –
i. Pass an order in writing registering the trust or institution.
ii.Pass an order in writing refusing registration of trust or institution, if he is not so satisfied by the documents submitted to him by the trust.
iii. Give the applicant a reasonable opportunity of being heard in case (ii).
iv. Sent a copy of such order to the applicant.
If after granting registration subsequently the commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out non-parallel in relation to its objects, then he may pass an order in writing, cancelling the registration of trust or institution, after giving such trust or institution a justifiable opportunity of being heard.
For Registering A Trust To Register Under Section 12aa – New Trust
STAGE 1
Preparing Trust Deed:
1. Give the objective
2. Give details of trustees: Name, Father’s Name, Age, Residential Address.
3. Give name of the proposed trust
4. Pay the necessary Drafting Fee including Stamp paper
STAGE 2
Registration u/s 12AA:
1.Prepare Letter Head
2. Register the trust deed at the local registrar office.
3. Prepare Round seal, Address seal, Flat seal.
4. Obtain the trust deed copy
5. Sign form 10A
6. Obtain Signature of the Managing Trustee in the Last Sheet of the Trust
Deed Photocopy.
7. Pay the necessary Fee for obtaining Registration Certificate
8.Take 4 Photocopies (Xerox) of the Trust Deed.
STAGE 3
1. Take Four to Five Photographs of Trust Activities.
2. Bring the photographs, intimation letter from Income-Tax department,
Letter Head and Flat Seal.