
12A registration
Introduction
12A registration is important for NGOs and companies.
It has many other important benefits for NGOs and non-profit organizations.
Many benefits can be obtained by registering on 12A.
12A is a section related to income text act.
Both 12A and 80G are issued by the Income Tax Department. 12A gives up to 85% tax exemption to NGOs. 12A is important for all NGOs. No matter how big or small the NGO is. 12A registration is very important for NGOs and companies.
- What is 12A Registration?
12A is a registration form that provides tax exemption benefits to non-profit organizations, such as NGOs and charitable trusts. For this registration, the organization must be properly registered and pursue only charitable or religious activities for its purposes. Eligibility includes the PAN of the organization and audit reports and proof of activities. It is only aimed at reducing the financial burden on non-profit organizations and help them fulfill their social welfare goals. That is why 12A registration is very important.
- Why is 12A Registration Important? Benefits of 12A registration:
12A registration is very important for an NGO as 12A opens many doors for their income tax exemption. If an NGO takes 12A registration, then it does not have to pay income tax on its surplus income. This registration makes the NGO eligible for grants from government and international organizations. If the NGO has also taken section 80G certification along with 12A, then both get tax benefits which increases their trust and financial support. This process is also a part of legal and regulatory compliance for NGOs, which also provides them an opportunity to work with credibility and transparency. Without this registration, an NGO has to pay tax on all its income. Therefore, taking 12A gives an opportunity for social and economic benefits.
- Application Process for 12A Registration
- Step-by-step guide:
It is very important to understand the application process for 12A registration step by step. First of all, the applicant has to go to the official website of the Income Tax Department and download Form 10A. Fill this form correctly in which the details of your NGO like PAN card and purpose have to be mentioned. After this, attach all the necessary documents like registration certificate, trust deed, audited financial statement and activity report! Upload the form and documents and submit it. After submitting, the Income Tax Officer checks the documents. If everything is correct then you will be called for verification! After verification, if the application is approved, then your NGO is given a unique 12A registration number. After this registration, your NGO gets the benefit of income tax exemption, due to which your donors also get tax relief.
- Documents Required for 12A Registration
- List of key documents:
12A registration requires certain important documents that prove the authenticity and objectives of the organization. First of all, a properly signed and registered Trust Deed or Memorandum of Association (MOA) of your NGO or trust is a must. Apart from this, it is necessary to submit the PAN card and address proof of the members of the governing body. The latest statement of the bank account of the organization and a copy of the audit report if the organization is already functioning is also required. Along with this, the balance sheet of the income-expenditure account and the details of the assets have to be given. If applicable, it is necessary to provide 80G certificate or any old approval document. Registered address proof such as rental agreement or property tax receipt has to be submitted. With these documents, you can easily complete the process of 12A registration.