Apply Online for 12A Registration

12A Registration, granted by the Income Tax Department, is a one-time registration for trusts, NGOs, and other nonprofit organizations. The primary purpose of this registration is to claim exemption from income tax on income applied towards charitable or religious activities.

Nonprofit entities such as Section 8 Companies, Public Charitable Trusts, and Societies usually apply for 12A registration soon after incorporation to avail tax benefits and enhance credibility.

At Bharat Bizs, we provide end-to-end assistance for obtaining 12A registration online, ensuring compliance with the latest Income Tax regulations while you focus on your social mission.

What is Section 12A of the Income Tax Act?

Section 12A of the Income Tax Act, 1961, lays down the conditions under which a trust, NGO, or nonprofit institution can claim tax exemption under Sections 11 and 12.

Without 12A registration:

• -The surplus income of the organization becomes taxable
• -Exemptions under Sections 11 & 12 cannot be claimed

 Private or family trusts are not eligible for 12A registration.

What is 12A Registration?

12A Registration is a certification issued by the Income Tax Department that allows nonprofit entities to claim income tax exemption on surplus income used for charitable or religious purposes.

Key Highlights:

• -Mandatory for claiming tax exemption
• -Applied through Form 10A (online)
• -Requires Digital Signature Certificate (DSC)
• -Valid permanently, unless cancelled

Once approved, the organization is exempt from paying income tax on eligible income.

Benefits of 12A Registration

1. Income Tax Exemption

Income applied towards charitable or religious purposes is exempt from tax.

2. Application of Income

Expenses incurred for charitable purposes are treated as income application.

3. Accumulation of Income

Up to 15% of income can be accumulated without tax.

4. Reduced Tax Liability

Income applied or accumulated is excluded from total taxable income.

5. Eligibility for Grants

Registered NGOs become eligible for government and foreign grants.

6. One-Time Registration

12A registration is valid for a lifetime, unless cancelled.

Eligible Entities for 12A Registration

The following entities can apply for Section 12A registration:

• -Public Charitable Trusts
• -Religious Trusts
• -Societies registered under Societies Registration Act
• -Section 8 Companies
• -Educational and Medical Institutions
• -Non-Governmental Organizations (NGOs)

Eligibility Criteria under Section 12A

To obtain 12A registration, the organization must:

• -Operate solely for charitable or religious purposes
• -Have no profit motive
• -Ensure activities benefit the general public
• -Ensure commercial receipts do not exceed 20% of total receipts
• -Not be a private or family trust

Validity of Section 12A Registration

As per the latest provisions, 12A registration is valid permanently, unless:

• -The organization violates conditions
• -Activities are found to be non-genuine
• -Registration is cancelled by the department

Documents Required for 12A Registration

• -Trust Deed / MOA & AOA (self-certified)
• -Registration Certificate (Trust / Society / Section 8)
• -PAN of the organization
• -PAN & Aadhaar of Trustees / Directors
• -Financial statements (last 3 years, if applicable)
• -Activity report / note on charitable activities
• -Digital Signature Certificate (DSC)
• -Previous rejection or cancellation order (if any)

How Bharat Bizs Helps with 12A Registration

Bharat Bizs provides end-to-end support for 12A registration, including:

-Eligibility assessment  

-Document preparation & review  

-Filing Form 10A online  

-DSC assistance  

-Follow-up with Income Tax Department  

-Expert guidance until approval

Our experienced professionals ensure accuracy, compliance, and faster approval.

Conclusion

12A Registration is a crucial compliance for any nonprofit organization seeking tax exemption and credibility. With recent procedural changes and online filing requirements, professional assistance ensures smooth and error-free registration.

 Contact Bharat bizs today to apply for 12A registration online and obtain your 12A certificate without hassle.