Published On : Wed, Mar 21st, 2018

12A Registration mandatory to claim exemptions for trusts under Income Tax Act : Sardarsingh Meena

Nagpur: The Nagpur Branch of WIRC of ICAI felicitated and made representation to the Commissioner of Income Tax (Exemptions), Pune Sardarsingh Meena recently at Nagpur.

The delegation was led by CA Umang V Agrawal, Chairman of Nagpur Branch along with Committee members and senior chartered accountants of the city. CA Agrawal greeted Meena on his maiden visit to the city after being appointed as the Pr. Commissioner of Income Tax (Exemptions), Pune which has the jurisdiction over all the trusts claiming exemptions under any section of The Income Tax Act 1961 in Vidharbha. He appraised the Commissioner about the activities of the Nagpur Branch and the various representations being made on behalf of the Chartered Accountants fraternity in Vidharbha. While discussing regarding various issues being faced by the trusts registered under the Bombay Trust Act with respect to their Taxation matters. He urged the Commissioner to request the CBDT to appoint a full time Commissionerate office at Nagpur. He further pointed out that the city has high number of trust cases and visiting Pune for 12A & 80G registrations becomes expensive affair for small trusts. The Chartered Accountants are also facing the problem since the entire process of registrations has become time consuming due to lack of Commissioner of Income Tax (Exemptions) office at Nagpur. He also pointed out the duplication of work which is ongoing due to simultaneous use of computerized and manual environments.

The delegation further pointed that several trusts are still being assessed in regular wards by the Income Tax Department and hence requested the Commissioner to request the Chief Commissioner, Nagpur to transfer all cases of trusts in Vidharbha charge to Exemptions Ward of the Department.

The Commissioner was very happy to be felicitated by The Institute of Chartered Accountants of India and complimented the Institute for all round support to the Department leading to smooth functioning of the Exemptions ward in Nagpur. He congratulated the Branch for ensuring that not only difficulties faced by the members but by general public is also highlighted at proper forum and through proper channel. While replying to the requests put forth by the Branch, Commissioner accepted that the department is willing to have an office at Nagpur but due to insufficient returns of trusts in the region, the same is not possible. He therefore requested the delegation to help the department in ensuring that all trusts who are claiming exemptions under Sec 10,11,12&13 of the Income Tax Act file their return on a timely basis. He further appraised the various irregularities that are seen in the returns of the Trusts so that necessary corrective action can be taken in future. He further pointed that Form No 7 is only required to be filed by trusts having registrations under Sec 12A of the Act. He also discussed about ways to ensure that all the trusts get registered under the Income Tax Act and file their return so that proper assessment can be done leading to reduction in in fructuous demands by genuine trusts. He further alerted the delegation that the returns if the trust would be rejected by the Department if registration details under Sec 12A are not entered properly in the return of income. He however has acknowledged the demands of the delegation and assured that the same would by taken up by him with higher authorities.

The Chairman also thanked senior members of the Institute CA Sudhir Baheti, CA Rajeev Pethe, CA Lancy D’souza and CA Bosco D’souza for putting forth various issues before the Commissioner.

The delegation of Chartered Accountants was accompanied by CA. Suren Duragkar, CA. Kirit Kalyani, CA. Saket Bagdia, CA. Sandeep Jotwani.