12A Registration is governed by the provisions of the Income Tax Act and is granted after thorough verification of the organization’s objectives, activities, and financial records. It is applicable to entities engaged in charitable or religious activities and ensures that their income is used for public benefit rather than personal gain.
The application for 12A Registration is filed in Form 10A (for new NGOs) or Form 10AB (for renewal or modification) through the Income Tax portal. The authorities review the application, documents, and financial records to verify the genuineness of the organization. In some cases, additional clarification or documents may be requested before approval.
Once granted, 12A Registration is generally valid for a specific period (as per amended provisions) and must be renewed before expiry. NGOs are required to maintain proper books of accounts, file income tax returns, and comply with regulatory requirements to retain this registration. It is an essential compliance that ensures transparency and accountability in the functioning of non-profit organizations.
12A Registration provides income tax exemption to NGOs and charitable institutions.
Yes, to claim income tax exemption on surplus income.
Yes, newly registered NGOs can apply.
12A provides tax exemption to NGO, while 80G provides tax benefit to donors.