Section 12AA of ITA, 1961 : Section 12Aa: Procedure For Registration

Explanation using Example

Imagine a scenario where a group of individuals create a new charity, "GreenEarth Foundation," focused on environmental conservation. They decide to register the charity as a trust to avail tax exemptions under the Income-tax Act, 1961. They submit their application for registration under section 12A to the Principal Commissioner of Income Tax (PCIT).

The PCIT, as per Section 12AA(1), requests additional documents and details about GreenEarth Foundation's activities to verify the genuineness of its operations. The PCIT may also conduct inquiries, such as visiting the foundation's project sites or reviewing their financial transactions.

After a thorough review, if the PCIT is convinced that GreenEarth Foundation has charita...

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