12A Registration
12A Registration for NGOs in India
12A Registration is an essential process for Non-Governmental Organizations (NGOs), Trusts, and other charitable entities in India. It is governed by the Income Tax Act, 1961, and provides tax exemption for the income of the organization. Once registered under Section 12A, the income of the NGO is not taxable, provided it is used for charitable purposes.
Key Features of 12A Registration
- Tax Exemption: NGOs can claim full exemption on their income, ensuring that funds are used solely for charitable purposes.
- Eligibility for Grants: Many government and private organizations provide funding only to 12A-registered NGOs.
- Validity: The registration is typically valid for 5 years and requires renewal thereafter.
Eligibility Criteria
- NGOs registered under:
- Societies Registration Act, 1860
- Indian Trusts Act, 1882
- Companies Act, 2013 (Section 8 Companies)
- The entity must engage in charitable or religious activities.
- Income should be used strictly for charitable purposes.
Documents Required for 12A Registration
- NGO Registration Certificate
- Trust Deed (for Trusts)
- Memorandum of Association (MOA) and Rules (for Societies)
- PAN Card of the NGO
- Audited Financial Statements (if available)
- Balance Sheet, Income & Expenditure Account, and Receipts & Payments Account.
- Details of Activities undertaken by the NGO.
- Governing Body Members’ Details:
- Name, Address, Designation, and PAN.
- Bank Account Statement of the NGO.
- Declaration from the authorized signatory or trustee.
Steps to Apply for 12A Registration
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Prepare Documents:
- Ensure all required documents are complete and accurate.
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File Online Application:
- Submit Form 10A (for new registration) through the Income Tax e-filing portal.
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Attach Documents:
- Upload scanned copies of the required documents in the application.
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Submit the Application:
- After filling out the form and attaching documents, submit the application online.
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Verification by Income Tax Authorities:
- The Income Tax Department will scrutinize the application and documents.
- They may request additional details or documents.
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Granting of 12A Certificate:
- Upon successful verification, the Income Tax Department issues the 12A registration certificate.
- This certificate serves as proof of the NGO's tax-exempt status.
Benefits of 12A Registration
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Tax Relief:
- The NGO's income is exempt from tax, provided it is utilized for charitable purposes.
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Donor Incentives:
- Donors to the NGO can claim tax deductions under Section 80G if the NGO also holds 80G registration.
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Funding Opportunities:
- Eligibility for grants from government bodies and foreign funding agencies.
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Enhanced Credibility:
- Registered NGOs are perceived as trustworthy by stakeholders, donors, and beneficiaries.
Renewal of 12A Registration
- The registration is valid for 5 years and must be renewed before expiry.
- Renewal applications are also submitted online using Form 10A.
Let me know if you need detailed guidance or support in applying for 12A registration!
