Latest Government Guidelines for Online 12A Registration in India

[Ishita Ramani]

The Online 12A Registration Process is crucial for NGOs, charitable trusts, and societies seeking exemption from income tax under Section 12A of the Income Tax Act, 1961. With the growing emphasis on transparency and digital compliance, the Government of India has streamlined this process with new updates and requirements.

In this article, we shall know more about the latest changes to the 12A Registration process.

What is 12A Registration?

12A registration allows NGOs and charitable entities to claim income tax exemption on the surplus income used for charitable purposes. It’s mandatory to claim benefits under Sections 11 and 12 of the Income Tax Act.

Latest Government Guidelines (as of FY 2024-25):

1. Mandatory Online Filing:

All 12A applications must be submitted online via the Income Tax portal using Form 10A.

2. Digital Signature/ EVC Required:

Applications must be verified using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

3. Re-registration for Existing NGOs:

NGOs already holding 12A registration are required to re-register under the new guidelines introduced by the Finance Act 2020.

4. Auto-generated Unique Registration Number (URN):

Upon approval, applicants receive a URN, valid for 5 years, after which realization is mandatory.

5. Timeline for Approval:

Applications are generally processed within 3 months, subject to the submission of correct documents.

Key Documents Required:

• PAN card of the organization
• Registration certificate of the NGO/trust/society
• Trust deed or MOA/AOA
• Details of trustees or office bearers
• Activity reports and financial statements

Benefits of the Online 12A Registration Process:

• Full income tax exemption on donations and surplus
• Better credibility and trust among donors
• Easier access to grants and CSR funding
• Faster approvals due to online processing

Conclusion

The latest government guidelines have made the Online 12A Registration Process more transparent, digital, and efficient. For NGOs and charitable bodies, staying updated with these changes is crucial for compliance and uninterrupted tax benefits.