Amendment or addition in objective clause of trust deed
Joshiraj
(Querist) 13 November 2016
This query is : Resolved
We have formed Public Charitable and Educational purpose. Later a church was started by the trust so they added the religious objective of worship and collection of offering as an amendment. This amendment was registered with the sub-registrar office where the original trust deed was registered as Charity and Educational Trust. Then it got 12 A exception for the Educational and Charity Trust before the amendment on objectives with religious purpose. The amendment is informed to IT Commissioner but accounts are being filed for many years without indicating religious activity in the IT return. What to do to rectify now for the mistakes of not disclosing religious activity? What will be the impact on 12A because of non-disclosure? Is that okay to add such objectives with the original objectives of the trust? Please advice.
Joshiraj
(Querist) 13 November 2016
We have formed Public Charitable and Educational purpose. Later a church was started by the trust so they added the religious objective of worship and collection of offering as an amendment. This amendment was registered with the sub-registrar office where the original trust deed was registered as Charity and Educational Trust. Then it got 12 A exception for the Educational and Charity Trust before the amendment on objectives with religious purpose. The amendment is NOT informed to IT Commissioner but accounts are being filed for many years without indicating religious activity in the IT return. What to do to rectify now for the mistakes of not disclosing religious activity? What will be the impact on 12A because of non-disclosure? Is that okay to add such objectives with the original objectives of the trust? The issue is the amendment is NOT informed to IT Commissioner who approved 12a and the trust is filing the accounts and getting the 12a exception for many years as it failed to disclose the fact in the IT return. Please advice.
Ms.Usha Kapoor
(Expert) 13 November 2016
YOU ARE WITHIN YOUR RIGHTS TO AMEND TO YOUR OBJECT CLAUSE AND ADD RELIGION. you FILE IT return WITH PREVIOUSLY NON DISCLOSED INCOME OUT OF RELIGIOUS ACTIVITIES. otherwise THERE WILL BE PENALTIES.
adv.bharat @ PUNE
(Expert) 13 November 2016
Why u had not informed IT commissioner about ammendement?
Joshiraj
(Querist) 13 November 2016
I think the trustee did not know if it has to be informed to the IT Commissioner and at some point they did not want to disclose the religious activities as the managing trustee who left India for USA after he got green card in USA. The new managing trustee did not try with any consultant but the office manager just showed expenditure on religious activities as for charity purpose. Again one more question: Can this then Managing Trustee continue with this trust as Trustee when he is away from India more than 6 months in a year? Thank you for your time and advice.
Rajendra K Goyal
(Expert) 13 November 2016
He can continue to be a trustee till nothing in the trust deed prevent him.
R.K Nanda
(Expert) 13 November 2016
consult tax lawyer.
Kumar Doab
(Expert) 13 November 2016
"The new managing trustee did not try with any consultant"
Engage professionals.
Retain professionals.
The counsel(s) retained by you can offer considered opinion after due examination.
adv.bharat @ PUNE
(Expert) 14 November 2016
Managing trustee is still trustee for the trust.
krishna mohan
(Expert) 07 December 2016
Your CA can advise correctly as it relate to IT exemption. It appears from the fact reported, expenses incurred for non exempted activities.
Kumar Doab
(Expert) 07 December 2016
The trust seems to have other issues as well.
The detailed discussion with a very able counsel can fetch you proper insights.
http://www.lawyersclubindia.com/forum/details.asp?mod_id=144844&offset=1
Rajendra K Goyal
(Expert) 07 December 2016
May proceed as advised by the expert Kumar Doab.
