Get your NGO

registered Under Section 12AB

Are you running a Non Profitable Organization which is involved in charitable activities? Get the benefits of Income Tax exemption under Section 12A of the Income Tax Act by registering your Trust or Organisation under Section 12AB of Income Tax Act with Ebizfiling.com at just INR 3,999/- only.

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What is Section 12A & Section 12AA?

All you need to know about the Section 12A & Section 12AA

Trust, Society and Section 8 Company can seek registration Under Section 12A of Income Tax Act to claim exemption under Income Tax Act’ 1961, if certain conditions are satisfied. Section 12A deals with registration of trust and Section 12AA deals with online procedure for registration of trust.

 

A Non Governmental Organization (NGO) that is neither a part of a government nor a conventional for-profit business. Usually set up by ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private persons. NGOs are highly diverse groups of organizations engaged in a wide range of activities, and take different forms in different parts of the world. Some may have charitable status, while others may be registered for tax exemption based on recognition of social purposes. Others may be fronts for political, religious or other interest groups.

New Compliances introduced in Budget 2020 for Section 12A and 80G

According to the new Compliance with regards to section 12A and section 12AA, All NGOs presently having exemption u/s 12AA of the IT Act shall have to reapply for the same by Dec 31, 2020. and shall have to obtain new registration u/s 12AB.

Latest Update

The new compliances under the mentioned Sections i.e under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Income Tax were to be completed till 31st August, 2020 which was extended till 31st December 2020. Then again the same scheme was extended to 01.04.2021 and 30th June 2021 and 31st August respectively.

 

Now looking in to the current situation the CBDT has again extended the due date for the application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc. has been extended till 31st March, 2022 and hence now all existing trust have to re-register themselves on or before 31.03.2022.

Difference between Section 12AA and newly introduced Section 12AB

 

Section 12 AA

Section 12AB

What NGOs are required to do?

The benefits of section 80G was available to all the NGOs registered under Section 12AA for the exemptions in the donations recieved by the NGOs. These benefits were available on a continuous basis.

Already registered NGOs u/s 12AA will have to reapply for the same and shall have to obtain new registration u/s 12AB.

The NGOs are required to reapply before 31st Decmeber, 2020 and get new registration u/s 12AA.

Exemptions are valid for Lifetime.

Already exempted NGOs will have a 5 year validity. While the new registrations will be provided with 3 years provisional registration.

NGOs shall have to provide evidence to and convince Income Tax authorities of the bonafides of their activities every 5 years (3 years in case of New registrations), in order to retain their tax exemption.

Details required only for overseas contributions/ donations.

Donor-wise details to be maintained and all donors will have to be given a certificate.

NGOs will have to maintain Administrative records.

80G benefits available to donors for exempt NGOs on a stable basis.

80G donations now exposed to uncertainty.

 

In India, the various privileges are available to NGO/Charitable Trust’s in the context of tax exemption. Now to avail the benefits of tax exemptions the NGO/ charitable trust has to register themselves with income tax under section 12A , Section 12AA  & Section 80G of the Income Tax Act, 1961.

 

Also Read: Registration under Section 80G(5)

Benefits of Section 12A & 12AA registration:

  • Income will be exempted from taxation.
  • Benefits in taking grants from government / abroad / other agencies.
  • Benefits in FCRA registration.

 

EbizFiling.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Registering Non-profit Organisation under section 12 AA is easy, seamless, cheapest and quickest with EbizFiling.com! Apart from this ebizfiling.com also helps in registration of trust / NGO / NPO under section 80G(5). You may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation.

Section 12A registration Fees

Choose Your Package

ESSENTIAL

3999/-

(All Inclusive)

  • Section 12AB registration Application for a Trust

ENHANCED

7999/-

(All Inclusive)

  • Section 12AB registration Application for a Trust
  • Section 80G registration Application for a Trust

ULTIMATE

9299/-

(All Inclusive)

  • Section 12AB registration Application for a Trust
  • Section 80G registration Application for a Trust
  • 1 DSC Application Class III Individual 2 Year Validity

New terms of registration and renewal of the registration under section 12A & 12AA

  • All the existing registered trusts under the section 12A or section 12AA would move to new provision section 12AB w.e.f 1st January 2021.
  • Newly established trusts and institutions applying to income tax for registration for the very first time will be given provisional registration for three years.
  • The provisional registration will be valid for three years.
  • Prior to 6 months from the completion of three years provisional registration, an application for renewal of provisional registration or rather registration has to be made.
  • All the registrations under Section 12A or 12AA once done, will be required to renew their registration at the interval of every 5 years.
  • After processing your application, your trust or institution’s registration under section 12AA and 80G may be revalidated by income tax for a period of 5 years.

Documents required for online Registration procedure under Section 12A

  • Company / Trust / Society registration certificates / registration documents
  • Copy of PAN card of the directors / trustees
  • Copy of Aadhaar Card of the directors / trustees
  • Digital signature of one of the directors / trustees
  • By Laws of this company, AOA, MOA copies
  • Audit reports for all financial years since incorporation
  • Audited Financials for all financial years since incorporation

Steps for online registration procedure under Section 12A & 12AA

 

5 Easy Steps

1

Fill in simple Checklist

2

Verification of documents

3

Online Application

4

Responding to queries

5

You get your 12A registration

A simple Checklist

A Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for processing. Our team of experts will verify the documents. Our team of experts will verify the documents provided by you and take the procedure further.

Application

Once our expert team completes verification process of your documents, the team will proceed with registration formalities. All throughout the process, a dedicated Compliance Manager will keep you updated on the progress of registration under section 12A. We will apply for Section 12A Registration online.

Registration U/s 12AA

Once we applied for the registration u/s 12 AA, after satisfying the Commissioner about the objects or the trust of institution, he will pass an order in writing registering the trust or institution. Note that if he is dissatisfied, he may refuse to register the trust / NGO / Non Profit Organization after hearing the applicant.

FAQs_Ebizfiling

FAQs on registration Under section 12AA:

Get answers to all your queries.

  • To whom application for registration under Section 12AA is to be made?

    The application for registration U/s 12AA has to be filed with the jurisdictional commissioner of Income Tax.

  • What certificates are required for online registration procedure under section 12AA?

    1. Registration certificate of NGO / trust / institution.
    2. Duly filled in Form – 10A for registration u/s 12A registration.
  • Can both the applications under section 12A and 80G of the Income Tax Act be applied together?

    Both applications need to be given separately. Note that 80G application needs to be supported with 12A registration certificate. Hence, it is imperative  that you obtain 12A first.

  • What is the validity of registration under section 12A & 12AA of Income Tax Act?

    The validity of registration under section 12A & 12AA of income Tax Act is for lifetime. However, the commissioner may cancel the registration in some cases.

  • What is difference between 12AA and 80g?

    Under Section 12AA, NGO can avail income tax exemption by getting itself registered and complying with certain other formalities under section 80G, Donee will get benefit of tax exemption of amount given as donation.

  • How do you assure that we would get Section 12A registration?

    It should be noted that submitting Form 10A to the Income Tax Commissioner does not guarantee that the organization will get registered under Section 12A. On receipt of a 12A application, the commissioner shall examine the case and may demand additional documents, if required. The registration will be granted only when the tax commissioner is satisfied with the supporting documents and the fact that trust is into charitable activities.

  • Still have Confusion?

    Don’t worry! Our experts will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolvedd. Write to us at info@ebizzfiling.com or call us @+91 9643 203 209.

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