CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Short answerSection 12AB registration is the income-tax registration that lets a charitable or religious trust claim exemption on its income, provided it applies the income to its objects. Without it, the trust is taxed like any other entity. It replaced the older 12A/12AA process.
What it does
Makes the trust’s income exempt when spent on its charitable objects (subject to the 85% application rule).
Replaced 12A/12AA
The new 12AB regime is time-bound and renewable, unlike the old one-time 12A/12AA.