12A Registration

Easily obtain 12A registration for your charitable organization. This crucial registration grants tax-exempt status to your institution, ensuring that all income is used for charitable purposes without being subject to income tax.

12A Registration: Your Guide to Income Tax Exemption for NGOs

12A registration is a mandatory and one-time process for trusts and non-profit organizations in India. Obtaining a 12A certificate from the Income Tax Department is the key to securing income tax exemption for your organization’s surplus income. This crucial step allows you to use your funds entirely for charitable activities, maximizing your positive social impact.

At FileMyFirm, we specialize in simplifying the 12A registration online process. Our expert guidance helps you navigate the complexities, ensuring your organization gets its 12A certificate for trusts, NGOs, and other charitable entities seamlessly.

What is 12A Registration and Its Benefits?

12A registration, as defined under the Income Tax Act of 1961, grants tax-exempt status to non-profit entities. Once you complete the 12A registration online process and obtain your certificate, all income from donations, grants, and other sources is fully exempt from income tax, as long as it’s used for the organization’s stated charitable or religious purposes.

Key benefits of 12A registration include:

Complete Income Tax Exemption: Your surplus funds remain untouched by taxes, enabling you to allocate more resources to your mission.
Perpetual Validity: This is a one-time registration that remains valid indefinitely unless it’s canceled by the authorities.
Boosted Credibility: A 12A certificate is a government stamp of approval that significantly enhances your organization’s credibility, making it more trustworthy to donors and partners.
Eligibility for Grants: Many government and private grants are only available to NGOs with Section 12A registration.
Financial Flexibility: It allows you to accumulate up to 15% of your income for future use, which is not included in your taxable income.

Who Can Apply for 12A Registration?

The following non-profit entities are eligible to apply for a 12A certificate:

Trusts: Public charitable trusts and religious trusts.
Societies: Organizations registered under the Societies Registration Act.
Section 8 Companies: Companies formed for charitable purposes under the Companies Act, 2013.

To be eligible, your organization must be genuinely focused on a “charitable purpose” as defined by the Income Tax Act, such as poverty relief, education, medical aid, or environmental protection.

How to Get 12A Registration Online

The process to get your 12A certificate for trusts or other non-profits has been digitized. You must file Form 10A on the official Income Tax e-filing portal. A digital signature is required for authentication.

Here's a simplified guide to the 12A registration process:

Preparation: Ensure your organization is legally registered and you have all the required documents.
Online Filing: Log in to the Income Tax portal and fill out Form 10A with accurate details about your organization’s mission and activities.
Document Submission: Upload self-certified copies of essential documents, including the Trust Deed, PAN card, and financial statements.
Verification: The Income Tax Commissioner will review your application and may request additional details to verify your organization’s genuineness.
Certificate Issuance: Once the application is approved, a written order granting the 12A certificate will be issued.

Documents Required for 12A Registration

To ensure a smooth application, have these documents ready:

- Registration Document: A copy of the Trust Deed, Society Registration Certificate, or Certificate of Incorporation.
- PAN Card: The organization’s PAN card.
- Financial Records: Audited financial statements for the past three years.
- Activity Report: A detailed report on the activities your organization has conducted.
- Previous Application Details: If applicable, a copy of any prior application order (rejection or approval) for 12A.

FileMyFirm offers expert assistance in preparing and filing these documents, making your 12A registration journey effortless.

Frequestly asked questions ( FAQ )

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