Tax Exemption for Trusts

Mr.Ashok D. Kothavle

Do you mean that the officer bearers are changed by mentioning change of constitution or the objectives of the Trust are changed.

Please note that before confering registration u/s 12A the Income-tax Authorities generally will ask the trust to insert a clause in the trust deed that any amendments to the deed shall be made only after approval of the income-tax authorities.  Here amendments mean only the objectives and and rules and regulation except the reliquinshment of office of office bearers at an Annual General Meeting or at any other occassion.

If you have amended the objectives with the prior approval of the income-tax authorities, the authorities now cannot question you for change of objectives, because at the time of granting approval for change they mihgt have informed you that if you change the objectives your trust will not enjoy continuation of registration u/s 12A.

Subsection (3) of Section 12AA  says that where a trust  has been granted registration under clause (b) of section (1) or has obtained registration at any time under section 12A as is it stood before its amendment by the Finance (No.2) Act, 1996 (33 of 1996) and subsequently the Commissioner is satisfied that the activities of such trust are not genuine or are not being carried out in accordance with the objects of the trust or institution as the case may be he shall pass an order in writing cancelling the registration of such trust.

Hence simply if the Income-tax Authorities say orally that you have not make a fressh application for registratin u/s 12AA, it will not be correct on the part of the authorites.

Please verify the facts of your case  in the light of the above explanation.

Best Wishes

Sathikonda