Income Tax Department Cancels 12A Registration of Azam Khan’s Jauhar Trust Over ₹450 Crore Irregularities

India's Income Tax Department cancelled Azam Khan's trust registration over 450 crore rupee irregularities, ending its tax-exempt status on June 25, 2026.

Key Takeaways
  • Income Tax Department cancelled 12A registration for the Maulana Mohammad Ali Jauhar Trust linked to Azam Khan.
  • Financial authorities cited 450 crore rupees in irregularities covering four years between 2020 and 2024.
  • The trust loses all charitable tax exemptions with immediate effect following the department’s enforcement order.

(INDIA) — The Income Tax Department cancelled the 12A registration of Maulana Mohammad Ali Jauhar Trust, a trust linked to Azam Khan, over alleged ₹450 crore irregularities, with the action reported on June 25, 2026.

The cancellation withdraws the trust’s charitable tax exemptions with immediate effect. That action hits the foundation of the trust’s tax-exempt status.

Income Tax Department Cancels 12A Registration of Azam Khan’s Jauhar Trust Over ₹450 Crore Irregularities
Income Tax Department Cancels 12A Registration of Azam Khan’s Jauhar Trust Over ₹450 Crore Irregularities

Authorities tied the move to alleged financial irregularities spanning financial years 2020-21 through 2023-24. The case centers on the Maulana Mohammad Ali Jauhar Trust’s standing under tax law.

The immediate consequence is direct. With the 12A registration cancelled, the trust no longer retains the charitable tax exemptions attached to that status.

The action marks a setback for a trust associated with Azam Khan, a political figure whose name remains closely tied to the institution. The department’s order, as reported on Thursday, places the trust under sharper financial and legal pressure.

The reported irregularities total ₹450 crore. The period under scrutiny covers four financial years, from 2020-21 to 2023-24.

Under the reported action, the Income Tax Department has moved beyond examination and into enforcement. The withdrawal takes effect at once, leaving no continuation of the trust’s earlier charitable tax treatment.

That change carries immediate weight for the organization because its tax-exempt standing rested on the registration now cancelled. The department’s move was described as a major setback to that status.

The case also places renewed attention on the financial records of the Maulana Mohammad Ali Jauhar Trust during the years cited in the action. Those years, 2020-21 through 2023-24, define the span linked to the alleged irregularities.

By cancelling the trust’s 12A registration, the Income Tax Department has taken one of the strongest tax actions available against a charitable entity’s exempt status. The effect, reported on June 25, 2026, is immediate loss of the tax benefits the trust had held.

The department’s move leaves the trust facing the consequences of the withdrawn exemption while the alleged ₹450 crore irregularities remain at the center of the case.

People also ask

Answers from VisaVerge guides
What is the tax treatment for private trusts in India?

Private trusts are taxed under Sections 160-166; if shares are determinate, trustee is a representative assessee taxed at beneficiaries’ slab rates; if shares are discretionary, the trust faces the Maximum Marginal Rate (MMR) under Section 164(1).

Read: Comparative Taxation of Trusts and Political Donations: India vs USA
What are the key changes to tax exemptions for FY 2025-26?

For FY 2025-26, the basic exemption has increased from ₹2.5L to ₹3L, and the limit for 80CCD(1B) has risen to ₹50,000.

Read: NRI Tax Residency 2025-26: 120-Day Rule and Deemed Residency
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Nadia Hassan

Nadia Hassan covers immigration policy and legislation for VisaVerge.com, decoding the bills, executive actions, agency rule changes, and fee structures that reshape the system. With a sharp eye for how Washington's decisions reach ordinary applicants, she translates dense policy into practical context. Nadia's analysis gives readers the "what it means for you" behind every major immigration announcement.

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