Registration for Section 12A of Income Tax Act

Registration for Section 12A of Income Tax Act
12A Registration

A registration under Section 12A is a process which requires an application in Form 10A. The form can only be filed online with the help of digital signature of the Author/Founder of the Trust (in case of Section 8 Companies, its Director or Promoter), and without one it will not go through properly. In order to avoid delays in the application process, Income Tax Department has recommended that you apply for this only through an online mode. Also, make sure the application shall include all necessary documents and addresses to Commissioner of Income Tax, with utmost professionalism!

The Benefits of 12A Registration are as follows:
  • Non-Profit Organisation don’t have to pay taxes on the money made by it.
  • If you are registered under Section 12A, then you can get benefits for accumulating or setting aside income. The income that is counted as the accumulation cannot be included in your total income. Also, You should not set aside more than 15% of the Income.
  • NGOs can get grants from the government and other places if they are registered under Section 12A.
  • The registration which is granted under Section 12A of the Income Tax Act,1961 shall be treated as a one-time registration and should be renewed every five years. Once the application has been made, there’s no going back!
Form 10A - Application for registration or provisional registration or intimation or approval or provisional approval

A registration under Section 12A is a process which requires an application in Form 10A. The form can only be filed online with the help of digital signature of the Author/Founder of the Trust (in case of Section 8 Companies, its Director or Promoter), and without one it will not go through properly. In order to avoid delays in the application process, Income Tax Department has recommended that you apply for this only through an online mode. Also, make sure the application shall include all necessary documents and addresses to Commissioner of Income Tax, with utmost professionalism!

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