12AA REGISTRATION CRITERIA:

12AA Registration is a one-time registration that can exempt Income Tax of an organization. The commissioner, as the case may have to satisfy his/ her sense that the activities Supreme Court was of the view that section 12AA of Income Tax Act, 1961, order that is undertaken by the trust are the genuine and are eligible Charitable activities. Form 10A is most useful to fill the application form for 12AA registration. The principal Commissioner Registration of a Trust. (Section 12AA) The 12AA registration facility is available for all non-profit entities. After this Registration, cannot be taxed all income. This application takes about 3 or 4 months. Section 12AA can be applied to the commissioner of Income Tax department jurisdiction over the institution. Income Tax is available for all NGOs but only those who are conscious of it and can take benefit out of it. Once the registration is done. It stays valid till the date of cancellation of the registration. NGOs enjoy the favour of receiving multiple permits from the government and other agencies. These agencies supply financial support to NGOs and usually promote to make a grant to 12AA registered NGO’s. The basic criteria to accept registration under section 12AA is the presence of the organization is to do the charitable job as defined in the Income Tax Act. The charitable activities like education, medical relief fund to the poor people and performing activities with the intention to prevent the environment.

Procedure for Registration:

1. Filled in the application will be submitted to the release section of the Income-tax department.
2. The institution will be accepted notice for clarifications from the Income-tax department.
3. The authorized representative will visit the Income-tax department and follow-up the case.
4. The Commissioner may be satisfied with the application, then the Commissioner will pass a written order referred that the assessed is suitable to achieve registration under the section.
5. The commissioner may not be satisfied with the application, then the Commissioner to reject the application. The assessed should be informed in writing of the reason for the rejection.

Advantage of 12AA Registration

• The advantage of setting aside of income not excessive 15% for the charitable or religious purpose will be available.
• The income applied for the charitable or religious purpose will be regarded as the application of income i.e. expenditure incurred for the religious or charitable purpose will be allowed while computing income of the trust.
• The final income accepted will be released from tax.
• The collection of income, which is count as the application of income as per section 11(2), shall not be included in the total income.
• NGOs receive the various advantage of acceptance of multiple permission from the government, and other agencies. There are agencies that provide financial/ economic support to NGOs, and these agencies generally promote to make a grant to 12AA registered NGO’s.
• An advantage in Section 80G registration, NGO’s have to apply separately for Section 80G registration.

Documents Required For The 12AA Registration:

12AA registration applicant submits the following documents including with Form 10A:

• Self-attested copy of the documents which provide evidence for modification of the objects of the entity shall be submitted.
• Maximum of three years financial report of the institution/ trust.
• Two copies MOA and registration certificate of self-attested by NGO head.
• NOC from the landlord (where the registered office is located)
• Copy of Pan Card of institution/trust/NGO
• Photocopy of Electricity Bill/tax receipt
• Note on performances which entity performs
• List of trustees with their contact details.
• List of contributors with their address, and Pan Card.