Section 12AA registration is for charitable organizations or trusts to gain tax exemption on their income, enabling them to use funds for charitable purposes without tax burdens. Eligibility requires the organization to meet the charitable purpose definition under the Income Tax Act.
Brief About 12AA Registration
Tax Exemption for Charitable Organizations Registration
Section 12AA registration is sought by charitable organizations or trusts to avail tax exemption on their income. This registration is under Section 12AA of the Income Tax Act, 1961. Once registered under 12AA, the organization’s income is exempt from tax, allowing it to utilize its funds for charitable purposes without the burden of taxation. Form 10A is a form which should be filed by entities which wish to take a registration under Section 12A.
Eligibility for Registration u/s 12AA
- In order to qualify for registration under Section 12A, the organization should meet the definition of charitable purpose as defined in the Income Tax Act. Charitable purpose means relief to the poor, education, medical relief and activities undertaken with the objective of preserving the environment. The pursuit of any other objective of a public utility will also qualify for a charitable purpose.
Key Benefits of 12AA Registration
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Documents required for 12AA Registration
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Documents required for 12AA Registration
Navigate the complexities of business setup effortlessly with our comprehensive document checklist. From identity verification to legal formalities, we cover all the essentials for a seamless registration process. Count on our expertise to guide you through every step, ensuring compliance and peace of mind as you embark on your entrepreneurial journey.
- A self-certified copy of the instrument which was used to create the trust or establish the institution shall be submitted.
- If the institution or trust may have been created otherwise than by way of drafting and registering an instrument. In such cases, a self-certified copy of the document evidencing the creation of the trust, or establishment of the institution should be submitted to the Income Tax Department.
- It is necessary to submit a self-certified copy of the registration, which was made with the applicable body. The applicable body may be the Registrar of Companies, the Registrar of Firms and Societies or Registrar of Public Trusts.
- A self-certified copy of the documents which provide evidence for adoption or modification of the objectives of the entity shall be submitted.
- Annual financial statements for three preceding financial years
- Note on the activities conducted by the entity
- The assessee may have previously applied for registration under this section for which the application may have been rejected. In such cases, a self-certified copy of the order of rejection should be attached with the application.
- The details of the DARPAN registration, if the organization is registered on the DARPAN portal
