‘12A registration must to claim exemptions for trusts under I-T’

Source: The Hitavada      Date: 15 May 2018 12:24:33


Business Bureau

The Nagpur Branch of WIRC of ICAI met Sardarsingh Meena, Commissioner of Income-Tax (Exemptions), Pune 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 Principal 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 Vidarbha. 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 Vidarbha.

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. “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 said. He also pointed out the duplication of work which is ongoing due to simultaneous use of computerised and manual environments.

Agrawal pointed that several trusts are still being assessed in regular wards by the Income-Tax Department and requested Commissioner to request the Chief Commissioner, Nagpur to transfer all cases of trusts in Vidarbha charge to Exemptions Ward of the Department.
The Commissioner complimented the ICA1, Nagpur Branch for all round support to the Department leading to smooth functioning of the Exemptions Ward in Nagpur. He congratulated the Branch for highlighting the difficulties faced by the members and general public 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 which are claiming exemptions under section 10,11,12 and 13 of the Income- Tax Act file their return on a times. 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. Meena further pointed that Form No 7 is only required to be filed by trusts having registrations under section 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 fructuous demands by genuine trusts. He alerted the delegation that the returns of the trust would be rejected by the Department if registration details under section 12A are not entered properly in the returns of income. The Commissioner assured the delegation that the demands of ICAI, Nagpur Branch would be forwarded to higher authorities.

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 and CA Sandeep Jotwani.