12a registration online

To grant income tax exemption to contributors, NGOs must apply for the 12A Certificates. It also assists non-governmental organizations in obtaining government financing. Connect with us to get your 12A registration.

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Why Should I Use Auriga Accounting For 12A Registration?

Auriga Accounting has a team of registration experts who can provide complete guidance to register your 12A Registration.

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Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for registration

Complete your registration

Your 12A Certificate

Why Should I Use Auriga Accounting For 12A Registration?

Auriga Accounting has a team of registration experts who can provide complete guidance to register your 12A Registration.

book appointment

Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for registration

Complete your registration

Your 12A is registered

OVERVIEW 12A

Under the Income Tax Act of India, Section 12A pertains to the registration of charitable or religious trusts and institutions for availing tax benefits. Registration under Section 12A allows such entities to claim exemption on their income, making them eligible for certain tax advantages.

The key features and benefits of 12A registration include

Exemption on Income: Entities registered under Section 12A are eligible for income tax exemption on their income, provided the income is applied for charitable or religious purposes. This exemption ensures that the funds received by the trust or institution can be utilized for its intended objectives without being subject to income tax.

Donations and Contributions: Donations made to trusts or institutions registered under Section 12A may be eligible for tax deductions under Section 80G of the Income Tax Act. This encourages individuals and organizations to contribute to charitable causes by providing them with tax benefits.

Continuity of Exemption: Once registered under Section 12A, the tax exemption is generally valid unless specifically revoked by the tax authorities. However, the entity must continue to fulfill the prescribed conditions and comply with the regulations of the Income Tax Act to maintain its eligibility for exemption.

Compliance Requirements: Registered entities are required to comply with certain reporting and documentation requirements. They must file annual returns and maintain proper books of accounts to demonstrate their utilization of income for charitable or religious purposes.

ELIGIBILITY

Charitable or Religious Purpose: The entity must exist for charitable purposes or for the advancement of religion. Charitable purposes include relief of poverty, advancement of education, promotion of health, preservation of the environment, or any other object of general public utility.

Non-Profit Orientation: The entity should operate on a non-profit basis, meaning its income and assets are applied solely for the fulfillment of its objectives. No part of the income or assets should be distributed to its members or trustees.

Compliance with Section 11 and Section 13: The entity must comply with the provisions of Section 11, which specify the conditions for exemption of income derived from property held for charitable or religious purposes. Additionally, it must also comply with the requirements of Section 13, which deals with restrictions on certain activities and benefits for the persons involved with the entity.

Registration as a Trust or Institution: The entity should be registered as a trust or a society or be constituted as a non-profit company under the relevant laws. It should have the necessary governing documents, such as the trust deed, Memorandum of Association, or rules and regulations, to establish its legal existence and operations.

BENEFITS

Tax Exemption on Income: Entities registered under Section 12A are generally exempt from paying income tax on the income earned, provided the income is utilized for charitable or religious purposes as defined under the Act. This exemption can result in significant savings, as the entity’s income is not subject to income tax.

Donations and Contributions: Registered entities may also benefit from donations and contributions made by individuals or organizations. Donors can claim tax deductions under Section 80G of the Income Tax Act for their contributions to registered charitable trusts or institutions. This tax benefit can incentivize donors to contribute more, potentially increasing the available funds for the trust or institution’s activities.

Utilization of Funds: The extent of benefit after registering 12A depends on how effectively and efficiently the trust or institution utilizes its funds for charitable or religious purposes. The funds should be utilized in accordance with the objectives mentioned in the entity’s governing documents and in compliance with applicable regulations. Proper financial management and transparency in fund utilization can help maximize the impact of the funds received.

Documents Required

Application Form: A duly filled and signed application form for registration under Section 12A.

Trust Deed or Memorandum of Association: The original or certified copy of the trust deed or Memorandum of Association (in case of a society or a non-profit company) establishing the existence and objectives of the trust or institution.

PAN Card: The Permanent Account Number (PAN) card of the trust or institution.

Address Proof: Documents providing proof of the registered office address of the trust or institution, such as a lease agreement, utility bills, or property ownership documents.

Identity and Address Proof of Trustees: Identity proof (such as Aadhaar card, passport, or voter ID card) and address proof (such as Aadhaar card, passport, or utility bills) of the trustees or office bearers of the trust or institution.

Financial Statements: Audited financial statements, including balance sheets, income and expenditure statements, and annual reports for the past three years (if available).

Asset and Liability Statement: A statement detailing the assets and liabilities of the trust or institution.

Registration Certificate: In case the trust or institution is registered under any other Act, such as the Societies Registration Act or the Companies Act, the registration certificate under the respective Act should be submitted.

PROCESS

Eligibility Check: Ensure that your trust or institution meets the eligibility criteria for registration under Section 12A. Generally, entities engaged in charitable or religious activities and fulfilling certain conditions are eligible for registration.

Application Preparation: Prepare the application for 12A registration. The application should include the following information and documents:

1. Trust deed or Memorandum of Association and rules and regulations (governing documents)
2. Details of trustees or office bearers
3. Objectives and activities of the trust or institution
4. Financial statements for the previous three years (if available)
5. Details of assets and liabilities of the trust or institution
6. Any other supporting documents as required by the Income Tax Department

Form Submission: Submit the application for 12A registration to the Commissioner of Income Tax or the prescribed authority having jurisdiction over your trust or institution. Ensure that the application is complete and accurate.

Verification and Assessment: The Income Tax Department will review the application and may conduct a verification process. They may scrutinize the application, governing documents, financial statements, and other supporting documents submitted. They may also visit the premises for a physical inspection, if necessary.

Issuance of Certificate: If the application is found to be satisfactory and complies with the requirements, the Commissioner of Income Tax or the prescribed authority will issue a registration certificate under Section 12A. This certificate confirms the registration of the trust or institution for availing tax benefits.

VALIDITY

Once a trust or institution is registered under Section 12A of the Income Tax Act in India, the registration is generally considered to be permanent, subject to certain conditions. Unlike other registrations that may have an expiry date, the 12A registration does not have a specific validity period mentioned in the Act.

However, it’s important to note that the registration can be cancelled or revoked if the trust or institution fails to comply with the provisions of the Income Tax Act. The Commissioner of Income Tax has the authority to cancel the registration if it is found that the entity is not operating for charitable purposes, is engaged in activities not in line with its stated objectives, or is in violation of other relevant provisions.

To maintain the validity of the 12A registration, the trust or institution should fulfill the following obligations:

Compliance with Charitable Activities: The entity must continue to operate exclusively for charitable or religious purposes and utilize its income and assets for the fulfillment of these objectives.

Compliance with Reporting Requirements: The trust or institution is required to maintain proper books of accounts and financial records. It must also file annual returns and other necessary reports with the Income Tax Department, demonstrating the utilization of funds for charitable purposes.

Compliance with Regulations: The trust or institution should comply with the regulations and conditions specified under Sections 11, 12, and 13 of the Income Tax Act. This includes restrictions on certain activities, benefits to persons connected with the entity, and compliance with prescribed accounting standards.

WHY AURIGA?

Auriga Accounting can assist businesses in obtaining an IEC by providing advisory and documentation support. They can guide businesses through the application process, help gather the necessary documents, and provide general legal assistance and compliance support related to import and export activities.

Auriga Accounting’s role may include:

Advisory Services: Auriga Accounting may provide guidance and advice on the eligibility criteria, documentation requirements, and compliance obligations related to 12A registration. They can help assess whether the trust or institution meets the necessary conditions for registration.

Documentation Preparation: Auriga Accounting may assist in preparing and compiling the required documents for the 12A application. They can help gather and organize the necessary paperwork, such as the trust deed, Memorandum of Association, financial statements, and other supporting documents.

Application Submission: Auriga Accounting can help with the proper submission of the 12A application to the designated authority. They can ensure that the application is complete, accurate, and in compliance with the specified guidelines.

Follow-up and Liaison: Auriga Accounting may act as a liaison between the trust or institution and the tax authorities during the application process. They can follow up on the status of the application and address any queries or requests for additional information from the authorities.

Compliance Support: Once the 12A certificate is obtained, Auriga Accounting can provide ongoing compliance support. They can assist in maintaining proper accounting records, filing annual returns, and complying with the reporting obligations to ensure the continued validity of the 12A registration.

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