Government Guidelines on 12a Registration for ngos

12a registration is a very important authorization awarded by the Income Tax Department of India that exempts the ngos and charitable organizations from paying tax on the excess revenue. Ngos have to follow certain prescribed guidelines by the government to avail of this benefit. According to the new conditions of the Income Tax Act, 1961, any organization will be required to obtain 12a registration to be done by them through Form 10a through the online income tax portal. The following are some of the most necessary documents that should be included in this application the trust deed the registration certificate the pan card the financial statements and activity reports. The application should be filed within a maximum of one month after incorporation or registration. The documents are considered by the Principal Commissioner or the Commissioner of Income tax exemptions who may demand more  clarification. When they are satisfied, they provide the 12a registration which normally has a five-year expiry date which is then renewed after some years. Notably, ngos can be granted 80g certification only after they are 12a registered and this provides tax deductions to donors. Therefore, it is critical to meet the new requirements of the government in regard to the digital process and documentation. Finally, 12a registration should not be understood only as a tax-relieving system, it is the acknowledgement of a reality that an ngo has charitable intent as per Indian tax law.