The Income Tax department has got the power to cancel any charitable organisation’s registration that accords it the benefit of tax exemption. The department can annul the registration and the exemption emanating from it if the organisation is found to violate the norms for registration, according to Budget 2010-11.

By this move, the government has made its intent to prevail over a series of court judgments, which held that the I-T department did not have the right to cancel registration of organisations with it.

The government provides relief to specified not-for-profit or charitable organisations under Section 12A of the Income Tax Act. A registration with the Income Tax department cannot be taken away by an I-T commissioner if violations are found, some courts had said earlier. read more

Source: Financial Express

Income Tax Department