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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Trusts, societies, and Section 8 companies can seek registration under Section 12A of the Income Tax Act to claim exemptions if certain conditions are met. Section 12A addresses the registration of trusts, while Section 12AA outlines the online procedure for this registration.
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.
Income Tax Exemption: Organizations with a 12A registration under the Income Tax Act are exempt from paying income tax on their income, as long as it is utilized for charitable or religious purposes.
Donation Eligibility: Allows the organization to accept donations from individuals and other entities, which may then qualify for donor tax benefits.
Legal Status: Gives the organization a formal legal status that can increase credibility and attract more donors and support.
Financial Transparency: Helps maintain clear records of income and expenditure, which is beneficial for audits and financial accountability.
Also Read: 80G 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 Organization 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.
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(All Inclusive)
(All Inclusive)
Section 12 AA |
Section 12AB |
What NGOs are required to do? |
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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. |
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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. |
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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. |
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80G benefits available to donors for exempt NGOs on a stable basis. |
80G donations now exposed to uncertainty. |
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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.
5 Easy Steps
Fill in simple Checklist
Verification of documents
Online Application
Responding to queries
You get your 12A registration
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.
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.
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.
The application for registration U/s 12AA has to be filed with the jurisdictional commissioner of Income Tax.
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.
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.
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.
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.
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.
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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