Income tax department issues draft notification for registration of trusts

NEW DELHI: The income tax department today came out with draft notification for fresh registration of trusts who have carried out modification of their objects.

The Finance Bill, 2017, proposed to amend section 12A of the Income Tax Act to state that where a trust/institution registered under section 12AA or section 12A and, subsequently adopts or undertakes modifications in its objects which do not conform to the conditions of registration, the trust/ institution shall be required to obtain fresh registration.

The application for fresh registration has to be made in the prescribed manner within 30 days of adoption or modification of its objects.

The I-T department has now come out with draft notification to amend Rule 17A and Form 10A of the Act and invited stakeholder comments by October 27, 2017.