REGN OF EDUCATIONAL INSUTITUTION

[MOHINDER KANSAL]

ONE OF MY CLIENT IS GOING TO START AN EDUCATIONAL INSTITUTE PROVIDING VARIOUS FACILITIES AND ON LARGE SCALE. THE INSTITUTE SHALL BE RUN BY A REGD. TRUST WHICH IS ALSO REGD. U/S 12A OF IT Act. NOW MY QUESTION IS THAT TO AVAIL THE TAX EXEMPTION WHETHER IT IS SUFFICIENT TO GET THE TRUST REGD. U/S 12A OF THE IT Act. WHETHER IT IS COMPULSORY TO GET THE TRUST REGD. U/S 10(23) OF THE ACT. WHAT IS THE DIFFERENCE BETWEEN BOTH REGN. WHAT ARE THE RELATIVE ADVANTAGES OR DISADVANTAGES TO GET OR NOT TO GET ONE OR OTHER REGN.

[manoj gupta]

It is sufficient to get the trust registered under section 12A of the act. there is no need to get registration u/s 10(23) of the act. Both the sections are parallel sections. While section 12A is meant for every charitable trust/institution etc. Section 10(23) applies to institutes satisfying certain conditions such as national/state wide importance etc. but it has no advantages over and above section 12A.

AI Summary

Registration under general charitable provision secures tax exemption; special institutional registration is unnecessary and adds no extra benefit. Registration of a trust under the general charitable-registration regime suffices to secure tax exemption for an educational institute; separate enrollment under the special institutional registration is not a precondition. The special institutional registration applies only to entities meeting additional criteria such as national or state wide importance and does not confer advantages beyond the general charitable-registration framework for typical educational trusts.