12 A Registration

12(A), Under section 12A, NGO like trust, society and foundation should register with Income tax department for a valid 12A certification.

The most important rule relating to this is registration of the NGO under the Income Tax Act.  Section 12A of the Income Tax Act deals with application for registration. 

NGO can get exemption from tax on NGO’s income under section 12A. Income of an organization is exempted if NGO has 12-A registration. All income shall not be taxable after 12-A registration. This is one time registration. If the NGO is not registered, income tax is payable on surplus during the year. 

This exemption is available for all non-profit NGOs. Unfortunately, many NGOs have not applied for this even after 10-15 years of working. This delay can be forgiven if you apply with sufficient reasons.

BENEFITS OF 12 A REGISTRATION
1. Income will be exempted for taxation.
2. Benefits in taking grants from Govt./Abroad/ other Agencies.
3. Benefit in FCRA registration.

WHEN TO APPLY

Application for registration under section 12A can be applied just after registration of the NGO.


PROCEDURE FOR REGISTRATION.  

Step-1: Dully filled-in application will be submitted to the exemption section of the lncome Tax Department.

 Step-2: NGO will receive notice for clarifications from Income Tax Department in 2-3 months after applying.

Step-3: Reply of notice will be submitted by the consultant along with all relevant desired documents to the Income Tax Departments.

Step-4: Consultant will personally visit the Income Tax Departments to follow-up the case on behalf of the applicant organization.

 Step-5: Exemption Certificates will be issued.

VALIDITY PERIOD

12A Registration: Lifetime validity.

 

Both 12A and 80G applications can be applied together or it can also be applied separately also. If some organization is willing to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration is must for applying application for registration u/s 80G of Income Tax Act.

     
   
     
   
     
   
     
 
     
   
     
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