12 A Registration

12A Registration, granted by the Income Tax Department, is a one-time registration for trusts and other nonprofit organizations. The primary objective of this Registration is to obtain an exemption from income tax payment. Generally, organizations apply for 12A Registration soon after their incorporation.

12A Registration
Trusts, NGOs, and other businesses are excluded from section 8 income tax under 12A registration. In essence, NGOs are associations created for humane and non-profit purposes.

However, unless they are registered under Section 12A of the Income Tax Act, they have income and would be required to pay tax at regular rates.

Religious and charitable trusts are not distinguished in Section 12A of the IT Act, 1961. Therefore, both kinds of organizations must be registered under 12A.

Benefits of 12A Registration

  • Tax Exemption
  • The income of non-governmental organizations is exempt from taxes
  • Governmental Support
  • NGOs will be eligible to apply for grants from any domestic and international government agency.
  • Proof of Existence
  • This certificate would serve as a legally binding declaration of the registered status of the entity to the government.


Documentation required for 12A Registration

The documents enlisted below are required for 12A registration:
  • Documentary evidence of the creation of a trust or NGO (Trust Deed; Certificate of Registration and Memorandum of Association of the Company).
  • According to Section 8, companies must submit an extract from the commercial register and copies of the company's MoA and AoA.
  • Form 10A
  • A three-year statement from the Trust's bank account.
  • PAN organization.


What does a section 12A certificate mean?

The term "Section 12A Certificate" means the registration obtained by an NGO for claiming exemption from the Income Tax Department.

Who can apply for 12A registration?

12A registration applies to NGOs and charities.

Mohammed Rafeeq,
Chairman of
Rafeeq Foundation
Rahul Reddy,
Managing Partner of
ARCA GROUP
Mr. Shanmugham,
Director of
SRI VISHNU HOTEL, Secunderabad
Sri. Sudhanva Charyulu,
Partners of
SRISUNAYANA PRIEST SERVICES
Sri. B.RAJU
Managing Director
Sri Aditya Infra Projects
Mr. Suresh Kumar,
Director of
Control Risk Security Force