12AA Registration
You're likely thinking about Section 12A of the Income Tax Act, 1961. There's no separate "12AA registration." Section 12A is the provision that deals with the registration of trusts and institutions for income tax exemption.
Here's a clarification:
Section 12A
- Purpose: Provides exemption from income tax to trusts or institutions established for charitable or religious purposes. This means their income is not taxed, allowing them to use funds for their objectives.
- Eligibility: Public charitable trusts, religious trusts, institutions like educational or medical ones, and Section 8 companies engaged in charitable activities can apply. Private or family trusts are not eligible.
- How it works: Organizations apply to the Principal Commissioner or Commissioner of Income Tax. If approved, they get a registration certificate.
- Validity: Previously, this was a one-time registration. However, after amendments in recent years, new registrations are granted for 5 years and require renewal.
Key points about Section 12A:
- It's essential for NGOs to effectively utilize funds for charitable work.
- It builds trust and credibility with donors and stakeholders.
- It's often a prerequisite for obtaining other registrations like 80G.
Recent Changes (Important!)
- Renewal: As mentioned, new registrations are now valid for 5 years and need renewal.
- Provisional Registration: New organizations can get provisional registration for 3 years. They need to apply for regular registration 6 months before the provisional one expires.
General frequently asked questions
You can create account with Gurufilings or you can book any service with us to become a member.
You can track and know every details of your services by logedin into your account or our support team will let you know by Phone or Email.
Gurufilings provides both online and offline Payments for our clients.
Based on terms and conditions you can cancel your service at any time.