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Unlock Tax Exemptions: Your Guide to 12A Registration for Charitable Trusts & NGOs

Hey there, changemakers! Running a charitable trust, NGO, or non-profit? Funding your noble causes is crucial. What if you could boost your financial resources through income tax exemption? Yes, we’re talking about the crucial 12A registration process!

This essential certification, governed by Section 12A of the Income Tax Act, 1961, grants your organization exemption from income tax on its surplus income, freeing up more funds for your mission. Let Filingworld.in guide you.

Why 12A Registration Matters

12A registration is a one-time certification by the Income Tax Department that exempts charitable or religious trusts and institutions from paying income tax on their income. Without it, even non-profits are taxed. This is a game-changer for sustainability, allowing you to reinvest more into your programs.

Who Can Apply & What You Gain

Any charitable trust, society, or non-profit organization established for charitable/religious purposes in India is eligible. Key benefits include:

  • Income Tax Exemption: More funds for social initiatives.
  • Enhanced Credibility: Builds trust among donors.
  • Gateway to 80G: Allows donors to claim tax deductions – a massive incentive!

Documents & The Process

Keep these documents handy: Trust Deed/MOA/Society Registration Certificate, PAN Card, details of trustees, proof of registered office address (e.g., utility bills), and financial statements. The application is filed online via Form 10A on the income tax portal. Provisional registration is granted first, followed by final registration within specified timelines.

Simplify Your Journey with Filingworld.in

Navigating legal and tax formalities can be daunting. Filingworld.in simplifies the entire 12A registration process. From document preparation to accurate online filing and liaising with the IT Department, our experts ensure a hassle-free experience. Focus on your core mission: making a positive impact.

Obtaining 12A registration is a strategic move for any non-profit aiming for financial stability and long-term impact. Partner with Filingworld.in, and let's get your organization the tax benefits it deserves. Unlock a world of opportunities!

FAQs
12A registration is a one-time registration granted by the Income Tax Department to charitable trusts, societies, and other non-profit organizations. It allows their income to be exempt from income tax, provided the funds are used for charitable or religious purposes.
Only non-profit organizations that have been created for charitable or religious purposes are eligible. This includes trusts, societies, and Section 8 companies. Private trusts, which benefit specific individuals, are not eligible.
The primary benefit is income tax exemption, which allows the organization to reinvest all its income into its charitable activities. It also provides enhanced credibility, which is crucial for attracting donations, grants, and government funding. 12A registration is a prerequisite for 80G registration.
The process is now fully online. You must file Form 10A on the Income Tax Department's e-filing portal. You will need to submit self-certified copies of key documents, such as the trust deed or registration certificate.
As per recent changes, a provisional registration is granted for a period of three years. An application for final registration must be submitted at least six months before the provisional period expires. The final registration is granted for a period of five years.
12A registration certifies that an organization's income is tax-exempt. 80G registration provides a tax benefit to the donor. You must first prove your non-profit status and tax exemption (via 12A) before you can offer tax benefits to your donors (via 80G).