How to register with Income tax under Section 12A by NGO, Section 25 Company, Charitable Trust and Society? Is it necessary to Register?
The Legal provision for granting exemption to a public charitable Trust, a company registered under section 25 of the Companies Act, or a society registered under the Societies Registration Act, 1860, or any other institution is contained in one or more of the following sections of Income Tax Act:-
(i) Section 2(15);
As per Section 12A of Income tax act the
provisions of section 11 and section 12, regarding
exemption of income, will not be applicable to an
institution etc., unless an application for its
registration is made to the CIT/DIT(E) within a period
of one year from the date of its creation. The
Commissioner of Income Tax (CIT)/DIT (Exemptions) may
condone the delay for good and sufficient reason.
The application for registration has
to be made in Form no. 10A accompanied by the following
The law regarding conditions precedent for registration, so far as merits are concerned, is written briefly and in simple language, namely, that the Commissioner of Income Tax (CIT)/DIT (Exemptions) should satisfy himself about:-
Section 12A(b) also requires that if
income of a trust etc. in any previous year exceeds
specified limit before giving effect to provisions of
section 11 and section 12, then its accounts are
required to be audited by an accountant and his report
in Form no. 10B has to be filed
Taxation on Charitable Trust and NGO
What is approval u/s 80G(5)? Is it necessary for a charitable Institution? How to apply for it? What is the use of approval u/s 80G(5) for Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions?