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.

AI Summary

Educational Institute Trust: Section 12A Registration Sufficient for Tax Exemption, Section 10(23) Not Required A client is planning to start a large-scale educational institute operated by a registered trust under section 12A of the Income Tax Act. They inquire whether this registration is sufficient for tax exemption or if registration under section 10(23) is also necessary. The response clarifies that registration under section 12A is adequate, as both sections are parallel. Section 10(23) applies to institutions of national or state importance but does not offer additional advantages over section 12A for tax exemption purposes.