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Frequently Asked Questions about 12A Registration in India

1. What is 12A registration?
– 12A registration refers to the registration process under Section 12A of the Income Tax Act, 1961 in India.
– It provides exemption to a charitable organization from paying income tax on the income earned from their charitable activities.

2. Who is eligible for 12A registration?
– Any organization or trust in India can apply for 12A registration if it falls under the definition of a charitable entity.
– This includes organizations engaged in activities like education, medical relief, advancement of any other object of public utility, and more.

3. How can one apply for 12A registration?
– The application for 12A registration can be made online through the e-filing portal of the Income Tax Department.
– The organization needs to fill out Form 10A and submit it along with the required documents, such as the trust deed, memorandum of association, and audited financial statements.

4. What are the benefits of 12A registration?
– 12A registration provides the organization with tax benefits, as it becomes eligible for exemption from paying income tax on its charitable income.
– It allows the organization to receive donations that are considered eligible for tax deductions under Section 80G of the Income Tax Act.

5. Is 12A registration permanent?
– No, 12A registration is not permanent.
– It is valid as long as the charitable organization continues to fulfill the requirements specified under the Income Tax Act, such as maintaining proper books of accounts and utilizing the income for charitable purposes.

6. Will charitable income be tax-free without 12A registration?
– No, without 12A registration, the charitable income of an organization will not be tax-free.
– 12A registration is required to enjoy the tax benefits and exemption from income tax on the organization's charitable income.

7. Can a revoked 12A registration be re-registered?
– Yes, if a 12A registration is revoked due to non-compliance with the applicable rules and regulations, the organization can apply for re-registration.
– However, it is crucial to rectify the deficiencies and reapply within a certain time frame to avoid any further penalties or complications.

8. What are the consequences of not obtaining 12A registration?
– Not obtaining 12A registration can lead to the organization being subject to regular income tax rates on its income from charitable activities.
– Additionally, without 12A registration, the organization may not be eligible for certain grants, donations, or other funding opportunities.

In conclusion, obtaining 12A registration in India is essential for charitable organizations to enjoy tax benefits and exemptions. It allows these organizations to focus on their philanthropic work and attract more support from donors by providing them with tax-deductible donation opportunities. 

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