Section 12A of Income Tax Act

Section 12A of Income Tax Act:

– The Income Tax Department grants trusts and other not-for-profit organisations a one-time registration known as a 12A registration.


– The registration is done in order to avoid having to pay income tax.


– Typically, 12A registration is requested as soon as an entity is incorporated.



Entities who want to create a registration under Section 12A should submit Form 10A. Both the Section 12A registration application process and the Form 10A filing procedure are only now available online.


Documents Necessary For Section 12A 

– A copy of the company, public trust, corporation, or society’s registration with the registrar.


– Self-certified copy of a trust or organization’s incorporation.


-Evidence-based documentation for the trust or society’s founding.


– Copy of the trust or society’s yearly accounts that have undergone self-attestation.


– The trust or society should provide a memorandum detailing all of its activities in full.


– The organisation, trust, or society must provide a self-certified document with an active order granting registration under.


Benefits Of Section 12A

– The fund that is used for the charitable or religious purposes is considered to be the income application.


– The income application is nothing but the expenses used for charitable or religious purposes when calculating the income of the trust.


– The income received will be free from taxation. The person registered under this section can avail benefits for accumulating or setting aside income which is not more than 15% for the charitable or religious purposes.


– The accumulation of income, that is considered to be the income application according to Section 11(2) will not be included in the total income. The registration that is made under Section 12A, is a one-time registration.



– The organisation must fit the Income Tax Act’s definition of a charity purpose in order to be eligible for registration under Section 12A.


– Charitable purposes include efforts made to help the underprivileged, promote education, provide medical assistance, or protect the environment. The pursuit of any additional public utility goals is likewise considered to be a charity purpose.


– Checking whether the assessee’s activities are motivated by a profit motivation will be the main qualification requirement. Registration will be approved if there is no profit motivation.