Section 12A Registration

Section 12A Registration

Section 12A registration is a registration process for obtaining an exemption from income tax for non-profit organizations or charitable trusts in India. Section 12A of the Income Tax Act, 1961, provides that income earned by a charitable trust or a non-profit organization is exempt from taxation if it is used for charitable or religious purposes.

The process for obtaining Section 12A registration involves the following steps:

1. Obtain a PAN card: The first step in the registration process is to obtain a PAN (Permanent Account Number) card from the Income Tax Department.

2. Register the organization: The non-profit organization or charitable trust must be registered as a trust, society, or section 8 company under the relevant laws in India.

3. Draft the trust deed or memorandum of association: The trust deed or memorandum of association should include the objectives and activities of the organization and should be drafted in accordance with the provisions of the relevant laws.

4. Apply for registration: The organization must apply for registration by submitting Form 10A to the Income Tax Department along with the trust deed or memorandum of association, PAN card, and other required documents.

5. Verification and approval: The Income Tax Department will verify the documents submitted and conduct an inspection of the organization's activities and records. If everything is found to be in order, the organization will be granted Section 12A registration.

Documents required for Section 12A registration:

1. PAN card of the organization

2. Trust deed or memorandum of association

3. Address proof of the organization

4. List of members or trustees of the organization

5. Registration certificate of the organization under the relevant laws

6. Accounts and financial statements of the organization for the last three years

7. Other documents as required by the Income Tax Department

The time required for obtaining Section 12A registration may vary depending on the verification process conducted by the Income Tax Department. Generally, it takes around 2-3 months to obtain Section 12A registration.