12A Registration is a process under the Income Tax Act, 1961, for non-profit organizations (NGOs, charitable trusts, societies) to obtain tax exemption. This registration allows organizations to receive income without paying tax on it, making it essential for charitable entities operating in India.
To be eligible for 12A Registration, an entity must:
File Form 10A through the income tax e-filing portal with the following documents:
The Income Tax Department reviews the application, examines documents, and may conduct field verification to ensure compliance with charitable objectives.
Upon successful verification, a 12A Registration Certificate is issued, typically valid indefinitely but requires renewal if issued under provisional registration.
NGOs need to renew 12A Registration every five years to maintain tax exemption benefits and ensure continued compliance.
12A-registered organizations are exempt from income tax on donations and other income, allowing them to utilize 100% of funds for charitable purposes.
Scenario: An NGO receives a donation of ₹10 lakhs
Tax benefits remain consistent across entity types (trusts, societies, Section 8 companies), but specific rules and compliance requirements may apply based on the organizational structure.
Find answers to common questions about 12A registration, eligibility, documents, process, benefits, setup, compliance, costs, and timelines.
12A Registration is a tax exemption certificate that allows NGOs and charitable entities to receive income without paying tax on it, enabling them to utilize funds fully for charitable purposes.
Non-profit organizations including NGOs, charitable trusts, societies, and Section 8 companies operating for charitable, religious, or educational purposes are eligible for 12A registration.
No, only non-profit organizations with charitable objectives can apply for 12A registration. Regular business entities are not eligible for this tax exemption.
The processing time typically ranges from 3-6 months, depending on the completeness of documents and the complexity of the organization's activities.
12A registration is generally valid indefinitely, but organizations may need to renew it every five years if issued under provisional registration.
12A registration provides 100% tax exemption on income and donations, allowing organizations to utilize all funds for charitable purposes without tax liability.
Yes, donors contributing to 12A-registered organizations can claim tax deductions under Section 80G of the Income Tax Act, encouraging more charitable giving.
No, 12A registration is specific to each organization and cannot be transferred. Each entity must apply for its own registration.
If 12A registration is revoked, the organization loses tax exemption benefits and becomes liable to pay income tax on all income received.
Yes, 12A registration is governed by the Income Tax Act, which applies uniformly across all states in India.
Only Section 8 companies (non-profit companies) can apply for 12A registration. Regular private/public limited companies are not eligible.
Yes, most government funding programs require 12A registration as a prerequisite for eligibility to receive grants and financial support.
12A registration covers domestic donations. For foreign donations, organizations need separate FCRA (Foreign Contribution Regulation Act) registration.
Yes, 12A registration can be backdated to the date of establishment of the organization, subject to certain conditions and documentation.
Organizations without 12A registration are liable to pay income tax on all income received, which can significantly impact their ability to carry out charitable activities.
Yes, the Income Tax Department can cancel 12A registration if the organization violates its charitable objectives or fails to comply with regulations.
12A registration provides income tax exemption but does not automatically exempt organizations from GST. GST registration depends on turnover and business activities.
Yes, 12A-registered organizations can receive donations from private companies, and such donations are eligible for corporate social responsibility (CSR) benefits.
12A registration provides tax exemption to the organization, while 80G registration allows donors to claim tax deductions on their donations to the organization.
Yes, 12A-registered organizations must file annual income tax returns (ITR-7) and maintain proper books of accounts as per Income Tax Act requirements.
12A Registration is a critical step for non-profit organizations seeking tax exemption and credibility. Asktrix can assist you with the complete registration process, ensuring compliance with all requirements and maximizing your organization's potential for growth and impact.