Is dissolution clause required in trust deed for 12A & 80G renewal?

Code of Taxation
1

Hello

I received an email from you reminding us for the 12 A and 80G renewal. I thank you for the reminder and creating this very helpful platform PATTIC that has been very very helpful for us.

I just wanted to clarify one thing before starting the renewal process.

Ours is a Mumbai based trust.

Is it mandatory to have a dissolution clause in the trust deed to be able to get the renewal done?

Thank you for your support :folded_hands:

2

Yes, dissolution clause is a must in Trust deed, mind the language of the dissolution clause which must be in line with the provision of Income Tax Act. So also irrevocability. amendment of Deed with prior approval of IT Dept, funds utilized as per objects and within India, provisions regarding 13(3) compliance, compliance with 11(4A) etc etc. Please also see the terms and conditions of your Form 10AC for 12AB and 80G and ensure compliance. This is essential for smooth renewal. Thanks

3

Thank you Sharadji. It is very helpful.

Shahazade

2 Likes