Insights & Research
CA Ajmal Muhajir
Head Consultant : Taxation & Audit
What is 12A Registration?
12A registration is a one-time registration which is granted by the Income Tax Department to trusts and other not for profit organisations. The purpose of the registration is to be exempted from the payment of income tax. 12A registration can be applied immediately after incorporation.
Section 8 Companies, Trusts, Society and NGOs which have obtained 12A registration can enjoy exemption i.e under section 11 and 12 of the Income Tax Act, from paying income tax on their surplus income.
The 12A registration facility is available for all non-profit entities. Hence, it is necessary for all Section 8, Trusts, Society and NGOs to be aware of Section 12A of the Income Tax Act. The purpose of the present article is to discuss the Eligibility, Documents and Procedure for obtaining 12A registration.
Eligibility for 12A Registration:
Documents required for Registration u/s 12A:
To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The process for applying for Section 12A registration and the process of Form 10A filing has been made exclusively online. The application of Form 10A shall be addressed to the Commissioner of Income Tax along with the necessary documents.
The following documents are required for registration u/s 12A of the Income Tax Act, 1961:
Procedure for Registration u/s 12A:
Once the application is submitted in the prescribed format online, the Commissioner will request the applicant to submit additional information or documents, as he deems fit. The request for additional information or documents would be to satisfy the Commissioner as to the genuineness of the activities of the Trust or Institution. If the Commissioner is satisfied with the application, then he/she will pass an order in writing registering the Trust or Institution under 12A of the Income Tax Act.
In case the Commissioner is not satisfied with the application, then he/she can also pass an order in writing refusing to register the Trust or Institution.
Order granting or refusing registration shall be passed before the expiry of six months from the end of month in which application was received under section 12A.
The process of registration may take time upto 3 or 4 months.
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