{"id":1260,"date":"2019-11-21T09:10:09","date_gmt":"2019-11-21T09:10:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1260"},"modified":"2021-03-31T11:26:49","modified_gmt":"2021-03-31T05:56:49","slug":"12a-registration-for-trust-or-ngo","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/","title":{"rendered":"How to apply for 12A Registration Online?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">You make\ndonations because it\u2019s your internal wish that compels you to do so. After all,\nthere is a great pleasure in giving than receiving. Selfless giving is\nsomething that most of us feel is the religious belief of many communities. But\nit will be an add-on for the donators if they can avail the tax deductions on\ndonations. And this is possible if your NGOs have&nbsp;<a href=\"https:\/\/corpbiz.io\/80g-and-12a-registration\"><strong>12A\nand 80G registration<\/strong><\/a>.<\/p>\n\n\n\n<p>Obtaining 12A\nregistration for your NGO (Non-Governmental organization) will grant the donors\nto avail of the tax deductions while donating. It is the most initial steps\nthat the NGOs must have before commencing their service for non-profit entities\nsuch as&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/forfeiture-of-exemption-to-charitable-trust-ngo\/\"><strong>Charitable\nTrusts<\/strong><\/a>, NPO\n(Non-Profit Organization), welfare societies, and religious institutions, etc.\n&nbsp;This provision of tax exemption does not benefit the organization, but it\nalso helps the donors associated with the organization. Earlier the registration\nunder 12A was one time registration and if once the\nregistration is approved\nthen it will be valid till&nbsp;its cancellation. But with effect from 1st\nApril 2021, the\nregistration shall be\ngiven for a time period\nof 5 years only and the\norganisation will\nhave to apply for\nthe renewal after\nevery 5 years.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#New_Registration_process_under_Section_12A\" >New Registration\nprocess under Section 12A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#Migration_of_existing_registrations\" >Migration of existing registrations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#What_is_12A_Registration\" >What is 12A Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#What_are_the_benefits_of_12A_Registration\" >What are the benefits of 12A Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#What_is_the_eligibility_for_the_12A_Registration\" >What is the eligibility for the 12A Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#What_are_the_Documents_required_for_obtaining_the_12A_Certificate\" >What are the Documents required for obtaining the 12A Certificate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#Application_Procedure\" >Application Procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#Cancellation_of_Registration_granted_us_12A\" >Cancellation of\nRegistration granted u\/s 12A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/12a-registration-for-trust-or-ngo\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_Registration_process_under_Section_12A\"><\/span>New Registration\nprocess under Section 12A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Finance Minister presented the\nUnion Budget 2020 where it was planned to make significant amendments for\ngiving exemptions to the Charitable, Institutions or Religious Trusts, etc. It\nis proposed under the new tax regime to amend Sections 10(23C), 11, 12A, 12AA\nand Section 80G of the Income Tax Act, 1961&nbsp;and at the same time proposed\nto introduce in place a new&nbsp;Section 12AB.&nbsp;<\/p>\n\n\n\n<p>&nbsp;These amendments shall have its effect from\nJune 01, 2020. Eventually, the\namendments were introduced by the&nbsp;Taxation\n(Relaxation and Amendment of Certain Provisions) Act,2020&nbsp;which\nfurther has extended\nthe new registration under Section 12AB of Income Tax Act and other Sections to&nbsp;<strong>April\n1, 2021<\/strong>. <\/p>\n\n\n\n<ul><li>The said budget also includes digitization of the registration process\nfor Charitable Trusts.<\/li><li>This amendment even applies to the existing charitable institutions to\napply for fresh registration under new provisions of Section 12AB of IT Act. <\/li><li>All the existing Institutions and Charitable Trust or one\u2019s registered\nunder the sections 10(23C), Section 12A, Section 12AA, Section 80G shall have\nto register themselves under the new&nbsp;Section 12AB&nbsp;to claim exemption\nu\/s 10 or 11, as according to the case.<\/li><li>An application for fresh registration under section\n12A will be given to the Commissioner or Principal Commissioner in accordance\nwith the provision of section 12AB. <\/li><li>&nbsp;The\norganizations shall be given a provisional registration for 3 years. After the\nregistration is granted it shall be valid for three years. In case of renewal\nof the application, new registration needs to be submitted within 6 months from\ncommencement of activities or six months before the expiry of validity period\nwhichever is earlier.<\/li><li>The validity of registration shall be for 5 years and\nit needs to be renewed after every 5 years of time.<\/li><li>In cases of new registration \u2013 the application shall\nbe submitted one month before the commencement of the previous year which is\nrelevant to the assessment year of registration. Hence, new NGO shall not be\nentitled to the registration benefit under section 12AB in its operation of\nfirst year.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Migration_of_existing_registrations\"><\/span>Migration of existing registrations\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Within three\nmonths from 1st April 2021, it is mandatory for all the registered NGOs to apply\nfor re-validation. The time period for the validity of the re-validated registration\nshall be for 5 years. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_12A_Registration\"><\/span>What is 12A Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>12A Registration is the kind of registration under the <strong>Income Tax Act, 1961<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/The_Income-tax_Act,_1961\"><strong>[1]<\/strong><\/a><\/sup><strong> <\/strong>that is migrated to be registered under 12AB and allows a tax deduction for the people making donations in your\u00a0<a href=\"https:\/\/corpbiz.io\/ngo-registration\"><strong>NGO<\/strong><\/a>. \u00a0Further, this will help the donators to get either 50% or 100% exemption in a tax deduction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_12A_Registration\"><\/span>What are the benefits of 12A Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following are\nthe benefits an NGO can avail under the 12A Registration \u2013<\/em><\/strong><\/p>\n\n\n\n<ul><li>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.<\/li><li>The organizations registered under section 12 A will receive government and grants from the various private sector and other agencies.<\/li><li>All the organization which is registered under 12A are also eligible for the government and private sector grants.<\/li><li>The persons who keep their income not more than 15% for charitable or religious purposes will avail of the benefits.<\/li><li>12A registration has lifetime validity and is active till the date of the cancellation of registration.<\/li><li>There is a benefit of\u00a0<a href=\"https:\/\/corpbiz.io\/fcra-registration\"><strong>FCRA Registration<\/strong><\/a>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_eligibility_for_the_12A_Registration\"><\/span>What is the eligibility for the 12A Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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\u00a0trust\u00a0and organization, they need to register under section 12A. If any NPO is not 12A registered, then their financial transactions will be taxable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_required_for_obtaining_the_12A_Certificate\"><\/span>What are the Documents required for obtaining the 12A Certificate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The important\nvital documents that are required by the trusts, societies, and organizations\nfor registering under section 12A are as follow:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Form 10A<\/li><li>Financial statements of 3 consecutive years.<\/li><li>PAN Card of the Organization.<\/li><li>Incorporation Certificate<\/li><li>Trust Deed in case the NGO is trust.<\/li><li>MOA (Memorandum of Association) and AOA (Articles of Association) of the company.<\/li><li>A certified copy of the instrument under which your trust is established.<\/li><li>A document with the complete details of the activities performed by the NGO.<\/li><li>A certified copy of the documents stating the establishment of the institution.<\/li><li>A certified copy of the registration with ROC (Registrar of Companies) or firms and societies.<\/li><li>Self-attested copy of the annual account of the trust or society.<\/li><li>A certified copy of the document having existing order granting registration (under Section 12A or section 12AA).<\/li><li>A certified copy of the application rejection orders for the grant of registration.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_Procedure\"><\/span>Application Procedure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The procedure of claiming exemption the NGO should formulate an\napplication to the Commissioner or Principle Commissioner of Income Tax in Form\n10A. <\/li><li>It has also been given that Form No. 10A shall be electronically\nfurnished under digital signature (DSC), and if the return of income is obligatory\nto be given under digital signature or via electronic verification code (EVC).<\/li><\/ul>\n\n\n\n<p><strong>\u00a0The following documents are obligatory to be submitted:<\/strong><\/p>\n\n\n\n<ol><li>Where the institution is established or the trust is created under an instrument, then \u00a0the self-certified copy of the instrument that is establishing the\u00a0institution or creating the trust;<\/li><li>Where the institution is established or any trust is created otherwise than an instrument, in that case self-certified copy of the document proofing the establishment of institution or the creation\u00a0of the trust, or<\/li><li>Registration\u2019s self-certified copy with the Registrar of Firms or Registrar of Companies, Societies or Registrar of Public Trusts etc.<\/li><li>Copy of the Self-certified document proving modification or adoption of the objects, if any;<\/li><li>Where the institution or trust was in existence during any year or prior to the financial year when the registration application is made, in that case the self-certified\u00a0copies of annual accounts of the institution or trust relating to such prior year <\/li><li>Self-certified copy of the order already existing that has granted registration under section 12A or section 12AA, as the case may be; and<\/li><li>Self-certified copy of rejection order of application for granting registration under section 12A or section 12AA,as the case may be, if any.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cancellation_of_Registration_granted_us_12A\"><\/span>Cancellation of\nRegistration granted u\/s 12A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Registration given u\/s 12A can be cancelled in the following\ncircumstances:<\/p>\n\n\n\n<ul><li>When the activities of the trust or institution are\nnot real or genuine.<\/li><li>When the activities are not according to the object of\nthe institution or the trust. <\/li><li>The income of the trust does not carry on or serve the\npurpose for the advantage of general public.<\/li><li>It is for the advantage of any specific religious society\nor caste.<\/li><li>When any property of trust and the income is useful\nfor the benefit of particular persons like an author of trust, trustees etc.<\/li><li>When the funds are invested in modes that are prohibited.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Trusts, Societies, and NGOs (Non-government organizations)\u00a0 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.\u00a0 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.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-get-80g-registration-for-trust\/\">How to Get 80g Registration for Trust?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You make donations because it\u2019s 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 [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":1261,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[192],"tags":[201],"acf":{"service_id":"12"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":6391,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1260"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1260"}],"version-history":[{"count":43,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1260\/revisions"}],"predecessor-version":[{"id":28362,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1260\/revisions\/28362"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1261"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}