In such cases, the exemption is available from the date of establishment. Otherwise, it is available from the financial year in which the application for registration is made.
The Finance Act 2007 has waived the requirement for filing the application within a year of establishment of a trust or institution. It has also abolished the Commissioner's power to condone delay, stipulating that for any application made by June 1, registration be granted from the financial year in which the application is made.
To be condoned for the delay in earlier years, any trust or institution, which does not file the application within a year of its creation, may apply before June 1. Applications filed by June 1 will entitle the trust or institution to exemption from the financial year in which the application is made and not for the earlier years, says a release.
Chief Commissioner of Income Tax, Chennai, C.R. Ravichandhran, says 7,000 trusts operated in the jurisdiction of Chennai city.
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