Under Section 12A of the Income Tax Act, 1961, non-profit organizations like charitable trusts, welfare societies, Section-8 Companies, NGOs, religious institutions, etc. are entitled to tax exemptions on their surplus income. This tax relief was introduced, keeping in consideration that non-profit entities work for social welfare and not for generating profit.

NGOs have multiple options to select the form of constitution, like trust, society and section 8 company. In order to claim exemptions under section 11 & 12 of Income Tax Act, 1961, it is mandatory for all NGOs to get registration under section 12A of the act.

Section 80G of Income Tax Act provides benefits to the donor of an NGO, whereas Section 12A Registration will provide benefits to an NGO to get an organization income exempted from Income Tax.

1. Provisional Registration
2. Regular Registration

Provisional Registration ~ Regular Registration:

An application for provisional registration under Section 12A in Form 10A will be made to Income Tax Department one month before the commencement of the Assessment year from which the registration is sought and the provisional registration is given by the IT department online. The registration once granted shall be valid for three years from the Assessment Year from which the registration is sought.

The provisional registration so granted shall be valid for a period of 3 years and hence needs to be renewed at the end of the above mentioned timelines. The registration so renewed shall be valid only for 5 years and needs to be renewed at the end of each 5 years.

The applicant has to convert this provisional registration earliest of at least 6 months before the expiry or within 6 months of commencement of its activities. The application for conversion of provisional registration to regular registration will be made to Income Tax department in Form 10AB. The regular registration is valid for a period of 5 years from the date of its issuance.

• A

  Trustees/Members/Directors Documents

  1. Trustees/Members/Directors PAN
  2. Trustees/Members/Directors ID Proofs
     Aadhaar Card or Voter ID or Passport or Driver's License
  3. Trustees/Members/Directors Address Proofs:
     Latest one month Savings Bank statement or
     Latest Telephone Bill on his own name or
     Latest Moblie Bill on his name or
     Latest Power Bill on his own name.
  4. Trustees/Members/Directors latest passport size photograph
  5. Trustees/Members/Directors Email ids
  6. Trustees/Members/Directors Mobile Numbers linked with their Aadhar
  7. Incase of Foreign direcrtors, International Passport is mandatory
• B

  NGO Documents

  1. Registered Trust Deed/Bylaws of a Society/ Memorandum and Articles of Association of a Company
  2. Trust/Society/Company PAN
  3. FCRA Registration Certificate if any
  4. DARPAN ID if any
  5. CSR Certificate if any
  6. Existing order of registration under section 12A or 12AA or 12AB, as the case may be
  7. In case of existing entities, copies of annual accounts for the period not exceeding 3 years immediately preceding the year in which the application is made
  8. Where the income of the entity includes profits and gains of business as per the provisions of sub-section (4A) of section 11, copies of annual accounts and audit report u/s 44AB for 3 years immediately preceding the year in which the said application is made
  9. Details of activities since its inception or last three years whichever is less

You can get your NGOs Section 12A license in the following process:

• 1

  Log on to the E-filing portal of IT department vide https://www.incometaxindiaefiling.gov.in/home

• 2

  Go to “Income Tax Forms” under e-File tab

• 3

  Select the Form Name as “Form 10A” and relevant Assessment Year from the drop down list

• 4

  Select the option of “Prepare and Submit Online” in submission mode

• 5

  Fill in the details as required in the form and attach the required and applicable attachments

• 6

  Submit the form using digital signatures or EVC as required while return filing

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