Page 46 - Union Budget_2019

Union Budget 2019

10.4 Cancellation of registration of the Trust or Institution

Section 12AA prescribes manner of granting registration in case of trust or an institution for the purpose of

availing exemption and additionally, the conditions for cancellation of such registration.

It is proposed to amend Section 12AA so as to provide that:

• At the time of granting the registration certificate, the Principal Commissioner or the Commissioner
shall additionally satisfy himself about the compliance of the trust or institution with the

requirements under any other statute which is pertinent for the attainment of its objects and may
make enquiries in this behalf

• Where a trust or an institution has been granted registration and subsequently it is noticed that
such trust or institution has additionally violated requirements of any other law which was material
for the purpose of achieving its objects, and the order for such violation has been passed and not

disputed or attained finality, the Principal Commissioner or Commissioner may pass a writing order
cancelling the registration of such trust or institution after providing a reasonable opportunity of

being heard

These amendments shall be effective from 1st September, 2019.

These proposed amendments shall further strengthen the provisions of cancellation of registration in
case the trusts or institution diverging from their objectives.

10.5 Provision of credit of relief provided under section 89

Computational provisions viz. Section 140A, Section 143, Section 234A, 234B and 234C provides the

manner of computation of income and tax liability after providing credit of taxes paid and admissible
credits, which does not include tax relief under Section 89 provided when salary, etc. is paid in arrears or
in advance.

Thus, it is proposed to amend the aforesaid sections to allow the credit of relief under Section 89 while
computing the tax liability.

These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in
relation to the assessment year 2007-08 and subsequent assessment years.

This will provide solace to assessees who were facing genuine hardships even though they were eligible
for this relief.

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