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Latest Updates at the Online 12A Registration Process by using the Income Tax Department |
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Latest Updates at the Online 12A Registration Process by using the Income Tax Department |
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The Online 12A Registration Process is a important step for NGOs and charitable companies in India looking for tax exemption under Section 12A of the Income Tax Act, 1961. The Income Tax Department has delivered extensive updates and changes on the Online 12A Registration Process. This article shall deal with the same for your brief reference and understanding. What is a 12A Registration? 12A Registration is a process through which NGOs, trusts, and charitable organizations get tax exemption on their income. Once registered, they don’t have to pay income tax, allowing more funds to be used for social and charitable activities. Important Updates in the Online 12A Registration Process
These forms are to be submitted digitally using the agency's PAN-based login. 2. 5-Year Validity Since April 1, 2021, all new and validated 12A registrations are legitimate for 5 years. Organizations ought to practice for renewal at least 6 months earlier than the expiry to hold their tax-exempt status. 3. E-Verification and Digital Signature Applications have to be authenticated the use of Aadhaar-based OTP or a Digital Signature Certificate (DSC), improving safety and felony validity 4. Stricter Scrutiny The Income Tax Department has increased scrutiny of financial records and activities to make sure that only genuine charitable businesses receive tax exemptions. 5. Time-bound Approval Process The department now generally tactics 12A packages within 3 months, with proper documentation and compliance. Best Practices to Avoid Errors in the Online 12A Registration Process
Conclusion The latest updates to the Online 12A Registration Process mark a significant shift towards digitization and ease of compliance. By following a fully online and standardized procedure, the Income Tax Department ensures that only eligible and genuine charitable organizations access tax benefits.
By: Ishita Ramani - May 3, 2025
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