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Shalini Singh
| Updated: 21 Nov, 2019 | Category: 12A & 80G Registration

How to apply for 12A Registration Online?

12A Registration

You make donations because it’s your internal wish that compels you to do so. After all, there is a great pleasure in giving than receiving. Selfless giving is something that most of us feel is the religious belief of many communities. But it will be an add-on for the donators if they can avail the tax deductions on donations. And this is possible if your NGOs have 12A and 80G registration.

Obtaining 12A registration for your NGO (Non-Governmental organization) will grant the donors to avail of the tax deductions while donating. It is the most initial steps that the NGOs must have before commencing their service for non-profit entities such as Charitable Trusts, NPO (Non-Profit Organization), welfare societies, and religious institutions, etc.  This provision of tax exemption does not benefit the organization, but it also helps the donors associated with the organization. Here in this article, we will go through the entire procedure that is required for applying for the 12A registration.

What is 12A Registration?

12A Registration is the kind of registration under the Income Tax Act, 1961 that allows a tax deduction for the people making donations in your NGO.  Further, this will help the donators to get either 50% or 100% exemption in a tax deduction.

What are the benefits of 12A Registration?

Following are the benefits an NGO can avail under the 12A Registration –

  • One of the key benefits of having 12A registration is tax exemption. The donations offered by the donators will be treated as the source of income for these NGOs. And whenever these NGOs show this expenditure, there will be a tax exemption for them.
  • The organizations registered under section 12 A will receive government and grants from the various private sector and other agencies.
  • All the organization which is registered under 12A are also eligible for the government and private sector grants.
  • The persons who keep their income not more than 15% for charitable or religious purposes will avail of the benefits.
  • 12A registration has lifetime validity and is active till the date of the cancellation of registration.
  • There is a benefit of FCRA Registration.

What is the eligibility for the 12A Registration?

Religious Trusts, Societies, Charitable Trusts, and Section 8 Companies under the NGOs which do not make transactions for their financial transactions have the right to obtain the 12A Registration while private or family trusts are not allowed tax exemptions. Also, they cannot apply for 12A registrations. After the establishment of these trust and organization, they need to register under section 12A. If any NPO is not 12A registered, then their financial transactions will be taxable.

What are the Documents required for obtaining the 12A Certificate?

The important vital documents that are required by the trusts, societies, and organizations for registering under section 12A are as follow:

  • Form 10A
  • Financial statements of 3 consecutive years.
  • PAN Card of the Organization.
  • Incorporation Certificate
  • Trust Deed in case the NGO is trust.
  • MOA (Memorandum of Association) and AOA (Articles of Association) of the company.
  • A certified copy of the instrument under which your trust is established.
  • A document with the complete details of the activities performed by the NGO.
  • A certified copy of the documents stating the establishment of the institution.
  • A certified copy of the registration with ROC (Registrar of Companies) or firms and societies.
  • Self-attested copy of the annual account of the trust or society.
  • A certified copy of the document having existing order granting registration (under Section 12A or section 12AA).
  • A certified copy of the application rejection order fro the grant of registration.

Read our article:How to Get 80g Registration for Trust?

What is the Procedure for obtaining the 12A Registration?

You can fill the form 10A through the separate online e-filing portal of the Income-tax department.

Following is the procedure for obtaining the 12 A registration:

  • According to the Rule 17A of the Income Tax Act, 1961, the applicant needs to file Form10A with the jurisdictional Commissioner of the Income-tax department[1].  At first, create an account after which you will get the username and password. Now, you need to select the assessment year and the submission mode.
  • According to the Rule 17A of the Income Tax Act, 1961, the applicant needs to file Form10A with the jurisdictional Commissioner of the Income-tax department. At first, create an account after which you will get the username and password. Now, you need to select the assessment year and the submission mode.
  • The application will contain the following documents:

    • Name, address and PAN details of the trustees.

    • A true certified copy of the registration certificate under which the trust is established.

    • Trust Deed, MOA (Memorandum of Understanding) and AOA(Article of Association) of the Company.

    • PAN card of NGO (Non-Governmental Organization).

  • After this, the Commissioner will verify the attached documents to check the authenticity of the information provided.
  • After that, on successful verification of the documents, the Commissioner will issue the 12A registration Certificate in writing.
  • In case, the commissioner finds any fault in the documents; the Commissioner will pass an order in writing stating that your registration process has been cancelled.
Note: Submitting the Form 10A to the Income Tax Commissioner does not mean that the organization will get registered under Section 12A. On receipt of a 12A application, the commissioner shall examine the case and may demand additional documents, if required for the 12A registration. The registration will be granted when the tax commissioner is satisfied with the supporting documents.

The validity period of the 12A Registration

The validity period of the 12A Registration is a lifetime, and it does not require any renewal procedure from time to time.

Conclusion

Trusts, Societies, and NGOs (Non-government organizations)  who operate for the social welfare of the society must obtain the 12A registration so that they can attract the donators for this noble cause.  Also, Further, the organizations having the 12A registration also provides a sigh of relief for the donations as they enjoy the exemptions for their contributions to society.

Read our article:A Detailed Guide For Obtaining 80G Registration

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Shalini Singh

Shalini is a B.tech graduate but her keen interest in writing impelled her to continue as a content writer. Further, She has a rich experience in Companies Act and Ammendment related topics.

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