Abhishek Roy Choudhury
asked
Dear Sir/Madam, Whether it is compulsory for a religious institution to get registered u/s. 12A/12AA. Also Please tell whether audit is compulsory for a religious institution. Please suggest at the earliest. Thanking you, Abhishek Roy Choudhury.
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Surbhi
answered
ITR-7 is filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).
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Ganeshbabu
answered
Not compulsory to register under section 12A for religious institution,if you register can get exemptions under sec.11/12
WHY 12A REGISTRATION?
1)12A registration is one time exemption obtained by mosts Trusts, right after incorporation to be exempted from paying income tax.
2)Trusts and NGOs having 12A registration enjoy exemption from paying income tax on the surplus income of the Trust or NGO.
3)Income tax exemption is available for all non-profit NGOs. Hence, it is important for all Trusts, NGOs and other Not-for-Profit organizations to be aware of Section 12A of Income Tax Act and obtain the same, soon after incorporation of the Trust or NGO.
4)Tax audit u/s 44AB applicable where gross receipts exceeds 1 crore
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If trust Registered under section 12AA in such case audit is mandatory when gross receipts exceeds basic exemption limit(i.e, 2,50,000)
