Getting 12A registration is a pivotal step for non-benefit associations in India, as it permits them to appreciate charge exclusion benefits under the Income Tax Act, of 1961. This enlistment is fundamental for beneficent and strict associations to get gifts and lead their exercises without being troubled by charge liabilities. In this blog, we will walk you through the most common way of applying for 12A registration online, making the whole method more available and effective.
Complete guide on 12A registration online
A “12A registration” commonly alludes to registration under Section 12A of the Income Tax Act in India. Non-profit organisations and charitable trusts can benefit from income tax exemptions thanks to this registration. At the point when an association gets 12A registration online, it becomes qualified for tax breaks, and contributors who add to the association can benefit from duty allowances. Non-profit organisations can’t function effectively, get donations, or keep their tax-exempt status without this registration. It implies that the association’s exercises are fundamentally centred around altruistic or social causes as opposed to benefit age.
Here are some key points about 12A registration in India:
Eligibility:
Associations like trusts, social orders, or philanthropic organisations that participate in exercises connected with schooling, well-being, the help of neediness, progression of some other object of overall population utility, or the advancement of religion, might be qualified for 12A registration.
Purpose:
The basic role of 12A registration is to empower and uphold beneficent and philanthropic exercises by absolving these associations from paying personal duty on their pay. This permits them to assign more assets towards their social or worthy missions.
Application Process:
To obtain 12A registration online, an eligible organisation must apply to the Income Tax Department in India. The application should include details about the organisation’s objectives, sources of income, and financial statements. The tax authorities will review the application and grant 12A registration if they find the organisation meets the necessary criteria.
Renewal:
When an association is granted 12A registration, it is normally substantial endlessly. In any case, the duty specialists might direct occasional audits to guarantee that the association keeps on gathering the qualification models.
Benefits of 12A registration online
Organisations with 12A registration partake in a few advantages, including exceptions from paying personal duty on their pay, the capacity to charge deductible gifts from givers, and admittance to different government and confidential awards and financing open doors.
Step wise process of applying for 12A Registration Online
The 12A registration in India is connected with the enrollment of an association as a beneficent or strict trust or foundation under Section 12A of the Income Tax Act, 1961. This registration gives specific tax cuts to these associations, including exceptions from paying personal expenses on their pay, assuming that it is applied towards magnanimous or strict exercises. This is the way you can apply for 12A registration:
Step 1: Prepare the Necessary Documents
Before you begin the online application process, gather all the required documents. These documents typically include:
- Memorandum and Articles of Association (for companies) or Trust Deed (for trusts) or Constitution (for societies).
- PAN card of the organisation.
- Address proof of the registered office.
- Identity proofs of the key members or trustees.
- Income statements and balance sheets for the last three years (if applicable).
- Copies of the registration certificate, if any.
- Details of ongoing and proposed activities.
- Bank statements and financial statements.
- Copies of donation receipts (if any).
Step 2: Create an Account on the Income Tax Department’s Website
To start the online application process for 12A registration online,, visit the official Income Tax Department’s website and make a record in the event that you don’t as of now have one. You will require a valid PAN card to register.
Step 3: Log in and Access the ‘e-Filing’ Portal
When you have effectively made a record, sign in to the gateway utilising your accreditations. In the wake of signing in, you will see the ‘e-Documenting’ tab on the dashboard. To continue, click it.
Step 4: Select ‘Apply for Registration’
Under the ‘e-Documenting’ tab, you will track down a possibility for ‘Apply for Registration.’ Click on this choice to start the 12A registration online application process.
Step 5: Fill in the Required Details
You will be given an online structure where you should give point by point data about your organisation. This incorporates your association’s name, address, targets, and monetary subtleties. Fill in every one of the fields precisely, as any erroneous data could prompt defers in the registration process.
Step 6: Upload Documents
Scan copies of the documents mentioned in Step 1 should be attached. Guarantee that the archives are clear and decipherable.
Step 7: Review and Submit
Check all of the information you’ve provided and the documents you’ve uploaded. Click the “Submit” button when you are satisfied.
Step 8: Receive a Unique Registration Number
After effectively presenting your application, you will get a remarkable registration number. You can use this number to see where your application stands.
Step 9: Verification and Approval
The Income Tax Department will review your application and documents. They may also conduct an inspection of your organisation’s activities. Once the verification process is complete, you will receive your 12A registration certificate.
Who can apply for 12A registration online?
In India, the following types of entities can apply for 12A registration under the Income Tax Act to become eligible for tax exemptions on their income:
Charitable Trusts: Trusts formed for charitable, religious, educational, or social purposes can apply for 12A registration online.
Societies: Non-profit societies engaged in charitable, educational, or social activities can seek 12A registration.
Other Charitable Organisations: Any other organisation, institution, or association that operates for charitable purposes and meets the criteria specified by the Income Tax Department can also apply for 12A registration.
Conclusion
Obtaining 12A registration is a vital step for non-profit organisations in India to operate effectively and access tax exemptions. By following the steps outlined in this guide, you can apply for 12A registration online efficiently. Ensure that you maintain proper records and comply with all the regulations to enjoy the benefits of tax exemption and continue your charitable or religious activities seamlessly.
