{"id":5991,"date":"2019-08-20T18:55:03","date_gmt":"2019-08-20T13:25:03","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=5991"},"modified":"2020-12-17T14:45:48","modified_gmt":"2020-12-17T09:15:48","slug":"income-tax-exemption-through-12a-registration-online-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/","title":{"rendered":"Income Tax Exemption through 12A Registration Online in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">12A Registration is imperative for all kinds of NGOs- whether Trust, Society, or Section 8 Company. Usually, companies register themselves under Section 12A of the Income Tax Act to avail the income tax exemption. <\/p>\n\n\n\n<p>Therefore, NGOs registered under Section 12A relish the tax exemption on their surplus income completely. Hence, it\u2019s substantial for every NGO and Trust to be aware of the <strong><a href=\"https:\/\/swaritadvisors.com\/12a-and-80g-registration\" class=\"text-primary\">registration under Section 12A<\/a><\/strong>. <\/p>\n\n\n\n<p>Furthermore,\nthey must ensure that they obtain the registration soon after the\nincorporation. So, to help you to understand every significant aspect of 12A registration\ncompletely, we have discussed Section 12A in-depth. <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/swaritadvisors.com\/12a-and-80g-registration\" style=\"background-color:#01669c\">Apply For 12A and 80G Registration Today <\/a><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3abe1d6698b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3abe1d6698b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#What_is_12A_Registration\" title=\"What\nis 12A Registration?\">What\nis 12A Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Who_should_acquire_registration_under_Section_12A_of_the_Income_Tax_Act\" title=\"Who should acquire registration under Section 12A of the Income Tax Act?\">Who should acquire registration under Section 12A of the Income Tax Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Eligibility_for_obtaining_12A_Registration_in_India\" title=\"Eligibility\nfor obtaining 12A Registration in India\">Eligibility\nfor obtaining 12A Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Documents_required_for_obtaining_12A_Registration_in_India\" title=\"Documents\nrequired for obtaining 12A Registration in India\">Documents\nrequired for obtaining 12A Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Steps_for_obtaining_12A_Registration_Online\" title=\"Steps\nfor obtaining 12A Registration Online \">Steps\nfor obtaining 12A Registration Online <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Step_1_Filing_Form_10A\" title=\"Step\n1: Filing Form 10A\">Step\n1: Filing Form 10A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Step_2_Verification_of_the_documents\" title=\"Step\n2: Verification of the documents\">Step\n2: Verification of the documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Step_3_Issuance_of_Certificate_of_12A_registration\" title=\"Step\n3: Issuance of Certificate of 12A registration\">Step\n3: Issuance of Certificate of 12A registration<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#Benefits_of_registering_your_NGO_under_Section_12A\" title=\"Benefits\nof registering your NGO under Section 12A\">Benefits\nof registering your NGO under Section 12A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/income-tax-exemption-through-12a-registration-online-in-india\/#12A_Registration-_Income_Tax_Exemption_for_NGOs\" title=\"12A Registration- Income Tax Exemption for NGOs\">12A Registration- Income Tax Exemption for NGOs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_12A_Registration\"><\/span>What\nis 12A Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under Section 12A of the Income Tax Act, 1961, all the NGOs such as Section 8 Company, Trusts, and Societies obtain registrations to exempt themselves from paying Income Tax. Such registration is known as 12A Registration. <\/p>\n\n\n\n<p>It\nis the foremost step after the NGO incorporation that one must obtain from the\nIncome Tax Department. After registration, you receive a 12A certificate which\nhelps you acquire permission from the government as well as organization\nabroad. <\/p>\n\n\n\n<p>Besides,\na 12A certificate serves as a legitimate proof to demonstrate the existence of\nyour NGO. Therefore, if you\u2019re an NGO and haven\u2019t obtained the respective\nregistration, get it soon to enjoy the benefits it offers. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_should_acquire_registration_under_Section_12A_of_the_Income_Tax_Act\"><\/span>Who should acquire registration under Section 12A of the Income Tax Act?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/NGO.png\" alt=\"who can apply for 12A registration\" class=\"wp-image-5999\" width=\"460\" height=\"324\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/NGO.png 601w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/NGO-300x212.png 300w\" sizes=\"(max-width: 460px) 100vw, 460px\" \/><\/figure><\/div>\n\n\n\n<p>Every\nNon-Governmental Organization namely-<\/p>\n\n\n\n<ul><li><strong><a href=\"https:\/\/swaritadvisors.com\/trust-registration\" class=\"text-primary\">Trust Registration<\/a><\/strong>.<\/li><li>Society.<\/li><li>Section 8 Company.<\/li><\/ul>\n\n\n\n<p>are\nrequired to obtain 12 Registration under the Income Tax Act, 1961. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_for_obtaining_12A_Registration_in_India\"><\/span>Eligibility\nfor obtaining 12A Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For obtaining a 12A certificate in India, the applicant must satisfy the following criteria:<\/p>\n\n\n\n<ul><li>Under existing rules,\nonly NGOs that are formed with an aim to offer benefits to the public such as\nReligious Trusts, Charitable Trusts, Welfare Societies, etc. may apply for 12A\nregistration. <\/li><li>Any private or family\ntrust can\u2019t apply for registration under Section 12A.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_obtaining_12A_Registration_in_India\"><\/span>Documents\nrequired for obtaining 12A Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According\nto Income Tax Rules, 1962, any Trust or NGO that wishes to register under Section\n12A must submit the following documents to the Income Tax Department: <\/p>\n\n\n\n<ul><li><strong>Form 10A:<\/strong> It\u2019s an application for registration of a charitable or religious trust or institution under clause (aa) or clause (ab) of sub-section 12A of the Income Tax Act, 1961; <\/li><li>Copy of the documents that must be certified and acts as evidence of modification or adoption of the objects, if any;<\/li><li>Additionally, a certified copy of the document that serves as evidence of the establishment of the institution or creation of the trust, if applicable;<\/li><li>A certified copy of the instrument under which the institution or trust was established or created, if applicable;<\/li><li>A certified copy of the registration with Registrar of Firms (RoC) &amp; Societies or Registrar of Public Trusts, whichever applicable;<\/li><li>Certified copy of the annual reports of the trust\/institution for a maximum three immediately preceding financial years, if applicable;<\/li><li>Note on activities;<\/li><li>Certified copy of existing order granting registration under Section 12A or Section 12AA, if any;<\/li><li>Furthermore, a certified copy of the order of rejection of application for grant of registration under Section 12A or Section 12AA, if any;<\/li><li>Any other (Please Specify). <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_for_obtaining_12A_Registration_Online\"><\/span>Steps\nfor obtaining 12A Registration Online <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicant can obtain a 12A certificate by following the steps as described below:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/Procedure-for-12A-registration.png\" alt=\"12A registration online procedure\" class=\"wp-image-5997\" width=\"535\" height=\"327\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/Procedure-for-12A-registration.png 618w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/Procedure-for-12A-registration-300x184.png 300w\" sizes=\"(max-width: 535px) 100vw, 535px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Filing_Form_10A\"><\/span>Step\n1: Filing Form 10A<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According\nto Rule 17A of the Income Tax Act, 1961, the applicant NGO requires filing Form\n10A with the Jurisdictional Commissioner of the IT (Income Tax) Department.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Verification_of_the_documents\"><\/span>Step\n2: Verification of the documents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Secondly,\nthe Commissioner will scrutinize the application form along with the documents attached.\nFurthermore, he will ensure that the information furnished is authentic. If something\nisn\u2019t there, the Commissioner will demand additional documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Issuance_of_Certificate_of_12A_registration\"><\/span>Step\n3: Issuance of Certificate of 12A registration<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If\nthe Commissioner is contented with the report, he will grant the Certificate of\n12A registration. However, if your documents are incomplete and aren\u2019t much\nrelevant, then the Commissioner holds the power to reject the application.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_registering_your_NGO_under_Section_12A\"><\/span>Benefits\nof registering your NGO under Section 12A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Such\nregistrations offer several advantages to its applicants. Here are some of the\nbenefits of 12A registration:<\/p>\n\n\n\n<ul><li>If anybody applies income for the religious or charitable purpose, it will be deemed as an application of income. It implies that the expenditure incurred for the religious or charitable purpose will be allowed while calculating the income of the trust.<\/li><li>The advantage of accruing or setting aside income not surpassing 15% for the religious or charitable purpose would be present.<\/li><li>NGOs with such registrations receive several grants from the government and other agencies. They are worthy of receiving financial funding and grants from a number of agencies. Mostly, such agencies make grants to NGOs registered as 12A.<\/li><li>Moreover, the accumulation of income must not be involved in the total income.<\/li><li>Easy to obtain FCRA registration for NGOs seeking foreign contributions.<\/li><li>Besides, it\u2019s a one-time registration and doesn\u2019t require any renewal. It works well until the cancellation of registration. Hence, the applicant enjoys the benefits for a lifetime. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12A_Registration-_Income_Tax_Exemption_for_NGOs\"><\/span>12A Registration- Income Tax Exemption for NGOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/Income-tax-exemption.png\" alt=\"Income Tax Exemption for NGOs\" class=\"wp-image-5995\" width=\"409\" height=\"401\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/Income-tax-exemption.png 486w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/08\/Income-tax-exemption-300x294.png 300w\" sizes=\"(max-width: 409px) 100vw, 409px\" \/><\/figure><\/div>\n\n\n\n<p>&nbsp;Hence, being an NGO or Trust, if you wish to get an income tax exemption, then you must <strong><a href=\"https:\/\/swaritadvisors.com\/ngo-registration\" class=\"text-primary\">register your NGO<\/a><\/strong> under Section 12A. Apart from tax benefits, it has got several other advantages to offer you. Hence, if you are going to incorporate an NGO, then get the registration done as soon as after the incorporation process.<\/p>\n\n\n\n<p>Even if you are a registered NGO but haven\u2019t registered under Section 12A, then you must register it and savour the advantages. In case of any doubts, please leave a comment below. We will get back to you sooner. <\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-check-society-registration-online\/\">How to check Society Registration online?<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>12A Registration is imperative for all kinds of NGOs- whether Trust, Society, or Section 8 Company. Usually, companies register themselves under Section 12A of the Income Tax Act to avail the income tax exemption. Therefore, NGOs registered under Section 12A relish the tax exemption on their surplus income completely. Hence, it\u2019s substantial for every NGO [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":5992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[101],"tags":[543,419,240,236],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5991"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=5991"}],"version-history":[{"count":14,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5991\/revisions"}],"predecessor-version":[{"id":17945,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5991\/revisions\/17945"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/5992"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=5991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=5991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=5991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}