Surrender of Trust 12A and 80G
This query is : Resolved
25 March 2025
is there any way, we can surrender trust's 12A and 80G registration ?
25 March 2025
The Income Tax Act does not provide a specific form or procedure like Form 10A/10AB (used for registration) for surrendering these registrations. The process relies on communication with the tax authorities and non-compliance with exemption conditions.
Under Section 12AB(4), the PCIT/CIT can cancel 12A registration if the trust’s activities are not genuine or violate the Act’s provisions. Similarly, 80G approval can be withdrawn under Section 80G(5)(iii) for similar reasons. Voluntary surrender aligns with this by demonstrating intent to forgo benefits.
Post-surrender, the trust’s income becomes taxable as per regular slab rates or business income rules, depending on its activities. Accumulated income or corpus funds may also attract tax under Section 11(3) if not applied correctly before surrender.
If a trust decides to surrender its 12A and 80G registrations because it no longer wishes to operate as a charitable entity, it could:
Pass a resolution.
Write to the CIT (Exemptions), requesting cancellation effective from the financial year 2025-26.
File its ITR for FY 2024-25 (by October 31, 2025, assuming audit applicability) without claiming 12A exemptions and noting the surrender of 80G benefits.
Under Section 12AB(4), the PCIT/CIT can cancel 12A registration if the trust’s activities are not genuine or violate the Act’s provisions. Similarly, 80G approval can be withdrawn under Section 80G(5)(iii) for similar reasons. Voluntary surrender aligns with this by demonstrating intent to forgo benefits.
Post-surrender, the trust’s income becomes taxable as per regular slab rates or business income rules, depending on its activities. Accumulated income or corpus funds may also attract tax under Section 11(3) if not applied correctly before surrender.
If a trust decides to surrender its 12A and 80G registrations because it no longer wishes to operate as a charitable entity, it could:
Pass a resolution.
Write to the CIT (Exemptions), requesting cancellation effective from the financial year 2025-26.
File its ITR for FY 2024-25 (by October 31, 2025, assuming audit applicability) without claiming 12A exemptions and noting the surrender of 80G benefits.
31 March 2025
Thank you very much sir
31 March 2025
You are welcome.
30 September 2025
Good luck....
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