THE FINANCE ACT 2020 BY THE INTRODUCTION OF SEC 12AB HAS MADE IT MANDATORY TO RENEW CERT,12A WITH IMMIDIATE EFFECT & EVERY 5YEARS THEREAFTER. WHICH WAS VALID TILL LIFE OF THE INSTITUTION UNLESS EXPRESLY CANCELLED BY THE I.T. DEPT .

THE EXEMPTION FOR TRUSTS & RELIGIOUS & CHARITABLE TRUST WAS GOVERNED BY SECs 11, 12, &13.WHICH EXPRESLY MANDATED, THAT A TRUST CREATED FOR A SPECIFIED PEOPLE OR FOR A SPECIFIED COMMUNITY WAS NOT COVERED UNDER EXEMPTION OF TAX UNDER SECs 11,12 & 13. & TO BGE ELIGIBLE THE TRUSTS CHARITABLE OBJECTS NEEDS TO BE APLICABLE TO ALL PERSONS WITHOUT DISCRIMINATION OF RELIGION, CAST, CREED OR STATUS, HOWEVER, THIS DISQUALIFICATION WAS NOT APPLICABLE FOR TRUSTS REGISTERED BEFORE THE I.T. ACT 1962 BECAME APPLICABLE, HENCE ALL RELIGIOUS & CHARITABLE TRUSTS REGISTERE BEFORE 1ST APRIL 1962 WHERE EXEMPT FROM TAX & ELIGIBLE FOR CERT.12A & 80G.

THE NEW SEC 12AB MANDATES AS ESSENTIAL THAT THE OBJETS MUST INCLUDE APLICABILITY TO ALL PERSONS IRESPECTIVE OF RELIGION CAST CREED OR STATUS, PERPEPECTUITY, TRANSFER TO A NOTHER LIKE TRUST IF IT IS TO BEWOUND UP,THESE MANDATORY CLAUSES & SOME OTHERS, EFFETIVELY MEANS THAT EXEMPTION GIVEN TO RELIGIOUS & CHARITABLE TRUST OF A SPECIFIC COMMUNITY ARE NO LONGER ELIGIBLE FOR TAX EXEMPTION,.

MY QUERY IS DOES SEC 12AB OVERIDE THE EXEMPTION GIVEN UNDER SECs 11,12,& 13 FOR TRUSTS CREATED & REGISTERED BEFORE 1962 & THEREFORE ARE NOT ELIGIBLE FOR EXEMPTION & CERT.12A

OR 80G UNLES THEY AMEND THEIR OBJECTS TO INCLUDE,FOR THE BENEFIT OF ALL WITHOUT DIFRETIATING ,CAST, RELIGION, CREED OR STATUS.

BEHRAM NAGARWALLA

zbnagarwalla@gmail.com