12A Registration

12A Registration: Ensuring Tax Benefits for Charitable and Religious Organizations

Darshan Corporate Pvt Ltd specializes in assisting charitable and religious organizations with 12A registration, enabling them to receive income tax exemptions. Organizations registered under Section 12A are eligible for tax benefits, ensuring that funds raised can be fully utilized for their intended purposes.

What is 12A Registration?

12A registration grants tax exemptions to charitable and religious organizations, helping them save on income tax liabilities. This facilitates better allocation of resources towards their mission and ensures compliance with income tax regulations. Organizations must maintain proper accounts and adhere to specific guidelines under this provision.

Key Benefits of 12A Registration

• Enables tax exemption on income for organizations engaged in charitable or religious activities.
• Builds credibility with donors by showcasing compliance with tax laws.
• Simplifies the process of securing funding by assuring donors that contributions are tax-exempt.

Important Updates as per the Finance Bill, 2020

• Section 12AB replaces the earlier Section 12AA, introducing new provisions for registration.
• The entire registration process is now digital, ensuring transparency and efficiency.
• Registrations are valid for 5 years and must be renewed thereafter.
• Organizations can obtain a provisional 12A registration valid for 3 years to commence activities.

Forms Introduced for 12A Registration

• Form 10A: Used for fresh registration or re-registration under Section 12AB.
• Form 10AB: Used for renewal of registration or changes to the organization's objectives.

Required Documents for 12A Registration

• Income tax portal login credentials.
• Copy of PAN card.
• Trust deed or Memorandum of Association (MOA).
• Contact details of the organization and trustees.
• Financial statements for the last three years, if applicable.
• Self-certified copy of existing registration under Section 12A or 12AA, if applicable.

Registration Process for 12A

1. Provisional Registration:

Apply via Form 10A for a provisional certificate valid for 3 years. The application must be submitted 1 month prior to the financial year in which activities are planned to start.

2. Re-registration:

Organizations already registered under Section 12A or 12AA must file Form 10A for re-registration under Section 12AB. Validity is granted for 5 years, requiring renewal thereafter.

3. Renewal of Registration:

Applications for renewal must be submitted 6 months before the expiration of the 5-year term. The income tax authorities will assess the authenticity and compliance of the organization.

How Darshan Corporate Helps

Our team at Darshan Corporate Pvt Ltd provides comprehensive support for 12A registration, ensuring a smooth and hassle-free process. From document preparation to filing and approval, we guide you every step of the way.