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<h1>Section 12AA: Registration Process for Trusts Requires Document Verification and Decision Within Six Months of Application.</h1> Section 12AA, introduced in the Income-tax Act by the Finance (No. 2) Act, 1996, outlines the procedure for the registration of trusts or institutions. The Chief Commissioner or Commissioner, upon receiving an application, must request necessary documents or information to verify the genuineness of the trust's activities. If satisfied, they will issue a written order registering the trust; otherwise, they will issue a refusal order, ensuring the applicant has a chance to be heard. All decisions must be made within six months from the application receipt month.