What is 12A registration and why is it needed?

12A registration under section 12A of the Income-tax Act, 1961 grants tax exemption on income of a trust, NGO or charitable institution applied wholly to its charitable objects. Without 12A, the trust's surplus is fully taxable as income of the trust at the applicable slab rate.

How is 12AB different from the old 12A?

The Finance Act 2020 replaced 12A with 12AB. New trusts get provisional 12AB registration for 5 years, after which final registration is granted if activities remain genuinely charitable. Existing 12A registrations continue to be valid till their re-application window opens up.

Is 12A required before 80G registration?

Yes. 80G approval under section 80G can only be granted to an entity that already holds a valid 12A / 12AB registration. The 12A certificate is a precondition for issuing donation receipts that qualify for donor tax benefits.

What forms are used for 12A application?

Form 10A is used for fresh 12A registration, conversion to 12AB and re-registration of existing trusts. Form 10AB is used for renewal of 12AB before expiry and modification of objects / address of the trust.

How long is 12A registration valid?

12AB registration granted after 1 April 2021 is initially valid for 5 years. The trust must apply in Form 10AB within 6 months before expiry for final / renewed registration. Pre-2021 12A registrations are valid indefinitely until cancelled.

Can a newly formed trust apply for 12A?

Yes, but the trust must be registered under the relevant law (Indian Trusts Act, Societies Registration Act or Section 8) and the deed must be in place before filing Form 10A. Activities must commence and Form 10B audit must accompany the application.

What happens if 12A is rejected?

The Commissioner passes a speaking order giving reasons. The trust can appeal before the CIT (Appeals) within 30 days, and further to the ITAT. Most rejections happen due to non-genuine charitable objects, undisclosed commercial activity, or material defect in the trust deed.

Registrations

12A Registration

Name: FinTax24 LLP
Address: First Floor, 24 Square, Nr. Hotel Nandini, Bhavnagar Road, Palitana, Gujarat, 364270, IN
Telephone: +91 7575 96 2424
Price range: ₹₹
Rating: 4.8

Quick answer: Section 12A registration under the Income-tax Act, 1961 is the foundational tax-exemption certificate that every genuine charitable trust, NGO, society, or Section 8 company must obtain to operate without attracting income-tax liability on surplus applied for charitable purposes. Without 12A, the entire surplus of a charitable institution — donations received, grants, interest income, and any…

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