Clarification by Central Board of Direct Taxes (CBDT)- Circular No. 21/2016 dated 27.05.2016

Now Central Board of Direct Taxes (CBDT) has issued a circular, Circular No. 21/2016 on 27th May, 2016 by which it has been clarified that merely on the basis of excess receipt from commercial activity beyond the cut-off (20% of total receipts during the years, as of now), exemption u/s 12AA would not be cancelled.

Even though this was the understanding, it was never clearly articulated and no such direction was issued later. Therefore, this is a welcome clarification from CBDT.

To read the circular, please find the link here: http://fmsfindia.org.in/pdf/circular27052016.pdf

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3 thoughts on “Clarification by Central Board of Direct Taxes (CBDT)- Circular No. 21/2016 dated 27.05.2016

  1. सर,
    कृपया हिंदी में बताये 12 A A वाला क्या मामला है ?

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