Exceeding the Rupees 5 crores threshold does not affect the validity of a 10-year registration received u/s 12AB
An organization may receive a 10-year registration under Section 12AB of the Income Tax Act, 1961.
This benefit is available if, at the time of applying for registration:
- The organization applies under the specified provision of Section 12A(1)(ac); and
- Its total income, before claiming exemption under Sections 11 and 12, did not exceed ?5 crores in each of the two financial years preceding the application year.
This condition applies at the time of application. Therefore, crossing ?5 crores in a subsequent year does not automatically affect the existing 10-year registration.
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