Get Your 12AA Certificate
Obtaining 12AA registration is an essential requirement for NGOs, charitable trusts, or non-profit organizations in India seeking income tax exemption. This certificate is granted by the Income Tax Department under Section 12A of the Income Tax Act, 1961. With the 12AA certification, an organization’s income becomes tax-exempt, enabling it to fully utilize its funds for charitable or religious activities.
What is 12AA Registration?
12AA Registration is a one-time registration that grants tax exemption benefits to non-profit organizations. It is mandatory for any NGO or trust that wants to claim exemption on its income and receive donations legally. Without this certificate, the organization’s income is taxable like any other business entity. Once registered, the organization can also apply for 80G Registration, which allows donors to claim tax deductions on their donations.
What is a 12AA Certificate?
A 12AA Certificate is an official document issued by the Income Tax Department after successful registration under Section 12A. It confirms that the organization is recognized as a charitable or non-profit entity and is eligible for tax exemption on its income. This certificate is crucial for NGOs and trusts because it not only provides tax benefits but also enhances credibility among donors, government bodies, and funding agencies. Once granted, the 12AA Certificate remains valid until it is cancelled by the department.
Benefits of 12AA Registration
- Tax Exemption: Income of the organization is fully exempted from income tax.
- Eligibility for 80G Registration: Enables the organization to offer tax benefits to donors.
- Enhanced Credibility: Builds trust among donors, government authorities, and funding agencies.
- Access to Government Grants: Many government and CSR funding programs require 12AA registration.
- Lifetime Validity: Once approved, the registration remains valid until cancelled by the Income Tax Department.
- Legal Recognition: Establishes the organization as a genuine charitable or non-profit entity.
Who Can Apply for 12AA Registration?
- Charitable Trusts
- Non-Profit Organizations (NPOs)
- Societies registered under the Societies Registration Act
- Section 8 Companies under the Companies Act, 2013
- Religious or Educational Institutions
Documents Required for 12AA Registration
- Registration Certificate or Trust Deed of the organization
- PAN Card of the NGO or Trust
- Details of Trustees or Members
- Financial statements for the last three years (if applicable)
- Proof of registered office address
- Activity report of the organization
- Bank account details
Why Choose Startup Manager for 12AA Registration?
Startup Manager is a trusted compliance and registration service provider in Delhi NCR, offering expert assistance for NGOs, trusts, and societies. The team ensures a smooth, transparent, and quick process for obtaining the 12AA Certificate. Our firm Startup Manager has successfully helped numerous NGOs, trusts, and societies across Delhi NCR obtain their 12AA and 80G registrations. The company’s reputation is built on trust, reliability, and consistent results.