Section 12A registration despite non-commencement of charitable activity

• August 9, 2020
• CA Chandan Agarwal's Office

In this Covid 19 pandemic times, many NGO have been come forward to help the society. They are providing assistance in medical, relief to the poor, food, education, home shelter etc.

They are foundation for this critical time. Many kind hearted people also come forward to donate to NGO so that the NGO can function smoothly.

In the  Income Tax Act, all receipt, income , donation and any other consideration to trust/society has a charitable object  and the same is enforced or applied or to be applied for charitable purpose are taxable at the  maximum marginal rate in hands of the trust /society unless they are  registered under section 12AA.

Read more on: https://taxguru.in/income-tax/section-12a-registration-despite-non-commencement-charitable-activity.html