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Can you answer my problem about 12 a?

Peter (Web developer) (29 Points)

29 August 2014

Dear CAClub India Members,

I have registered society, we have FCRA and 80 G and 12 A

Recently we changed our Auditor (C.A.) We have received a foreign grant for religious Purpose and our C.A Is telling us that we cannot utilize that funds for Religious purpose because we have received 12 A for only charitable purposes.

So I want to know that a religious society cannot do a charity work and a charitable society cannot do religious work? In our bye laws we have stated that we will help both charity and also for religious congregations.

Our C.A is telling us to register one new trust and get 12 a and use funds only for religious.

We have received 12 A in the year 2006 and He is telling that our society should only do charitable work.

Please help me!

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2 Replies

raghavender upadhyay (B.Com, LLB, CA FINAL) (331 Points)
Replied 29 August 2014

In reply to your query,

Section 13: Section 11 not to apply in certain cases:

1. Entire income from the property held under a trust for private religious purposes which does not enure for the benefit of the public.

2. Entire income of a charitable trust or institution created or established for the benefit of any particular religious community or caste.

3. Entire income of the following charitable/religious trust:-

a) where any part of the income of such trust is used for the benefit of any person specified under sec13(3) or

b) Where any property of the trust id used for the benefit of any person specified under sec13(3)

4. Entire income of a charitable /religious trust whose funds are not invested in modes specified under section 11(5).

Peter (Web developer) (29 Points)
Replied 30 August 2014

For doing religious activity I have to get another 12 A with status of Religious trust. For doing religious types of work, Helping priests and repairing religious temples.