By virtue of 12A registration, Trusts and NGOs and other Section 8 companies enjoy exemption from paying income tax. NGOs are basically organizations that are meant for charitable and non-profit activities. However, they do have income and would be required to pay tax as per normal rates if not registered under section 12A of the Income Tax Act. The Section 12A of the IT Act, 1962 does not differentiate between charitable and religious Trusts. Hence 12A registration is applicable to both the kinds of organizations.
These are some features are :
Following documents are required for registration purpose:
12A Registration about 45-55 working days.
Under existing rules, trusts, societies and other section 8 companies that are formed to provide benefits to the public such as Charitable Trusts, Religious Trusts, Welfare Societies, etc. are eligible for 12A registration.
Section 12A and Section 80g. An NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations.
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