12AA / AB Registration
Are you running a Non Profitable Organization (NGO) which is involved in charitable activities? Get the benefits of Income Tax exemption under Section 12A of the Income Tax Act by registering your Trust or Organisation under Section 12AB of Income Tax Act.
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Benefits of 12AA / AB Registration
Why 12AA / AB Registration?
- Income will be exempted from taxation.
- Benefits in FCRA registration
- Benefits in taking grants from government / abroad / other agencies
Pricing
(Simple & Clear Pricing. No Hidden Charges)
| Government Fee | Rs 0 |
| Professional Fees | Rs 2,459 |
| Goods & Service Tax | Rs 540 |
| Total Cost | Rs 2,999 |
12AA / AB Registration in India
(All you need to know)
Trust, Society and Section 8 Company can seek registration Under Section 12A of Income Tax Act to claim exemption under Income Tax Act’ 1961, if certain conditions are satisfied. Section 12A deals with registration of trust and Section 12AA deals with online procedure for registration of trust.
A Non Governmental Organization (NGO) that is neither a part of a government nor a conventional for-profit business. Usually set up by ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private persons. NGOs are highly diverse groups of organizations engaged in a wide range of activities, and take different forms in different parts of the world. Some may have charitable status, while others may be registered for tax exemption based on recognition of social purposes. Others may be fronts for political, religious or other interest groups.
According to the new Compliance with regards to section 12A and section 12AA, All NGOs presently having exemption u/s 12AA of the IT Act shall have to reapply for the same by Dec 31, 2020. and shall have to obtain new registration u/s 12AB.
Eligibility Criteria for 12AA / AB Registration
Following eligibility criteria are required :-
- The organization must be a registered NGO
- NGO assets should only be used for charitable purposes
- NGOs working as Public Charitable Trust or u/s 25 of the Companies Act, 1956 working only for the public welfare are permitted for this provision
- NGOs should correctly maintain Books of Account of their expenditures & receipts
Documents Required for 12AA / AB Registration
Following Documents are required :-
- Company / Trust / Society registration certificates / registration documents
- Copy of PAN card of the directors / trustees
- Copy of Aadhaar Card of the directors / trustees
- Digital signature of one of the directors / trustees
- By Laws of this company, AOA, MOA copies
- Audit reports for all financial years since incorporation
- Audited Financials for all financial years since incorporation
Procedure for obtaining 12AA / AB Registration
Taxtorium can help you in obtaining 12AA / AB Registration in India. All you need to do is place an online order with us and we shall help you start it in no time. Your order shall be processed by our highly qualified team who shall ensure that the best quality services are provided to you. As mentioned earlier, our process is completely online so there is no need for you to visit our office. Please do contact us for any clarifications you need.
Once we receive your request an expert reaches you, explains the whole process, and collects the necessary documents. The documents can be submitted online through our Taxtorium Website. You shall have to ensure that the documents are authentic and updated.
Application for 12AB registration is made in Form 10A which is prescribed in Rule 17A of the Income Tax Act, 1962. It has to be filed with proper documents to Jurisdictional Principal Commissioner or Income Tax Comissioner (Exemptions).
On receiving the application for registration, the Commissioner verifies the documents and genuineness of the NGO activities. He may call for additional documents and other information which he considers important or necessary.
After verification, the Commissioner passes an order in writing for the grant of 12AB Registration. If the Commissioner is not satisfied, he will reject the application, after which the applicant is provided a fair chance to be heard.
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Frequently Asked Questions
What does section 12A Certificate mean ?
The term “Section 12A Certificate” denotes a registration obtained by the NGO for availing Tax Exemption from the Income Tax Department.
What is the significance of Section 12A registration?
An NGO with 12A Registration is eligible to claim a complete Tax Exemption from Income Tax Department.
What is the difference between Section 12A and 80G registration?
The main difference between the both is that the 12A assist an NGO in getting Tax Exemption from the IT Department. In contrast, 80G offers benefit to the Donor of an NGO.
What is the difference between Section 12AA and Section 12A?
The main difference between the both is that the former provides the process of registration under Section 12A. In contrast, the latter provides for the applicability of sections 11 and 12.
What is the Validity of section 12A registration?
The Registration under Section 12A has lifetime validity.
Can I apply for Registration under Section 80G and 12A together?
Yes, one can apply for Registration under Section 80G and 12A in both ways, i.e., together or separately.
How can an individual register his/her Trust under Section 12A?
One can apply for the registration under Section 80G and Section 12A by visiting the official website of the Income Tax Department.
