All About Section-12AA Registration

All About Section-12AA Registration

As per Income Tax Act, 1961, a entity registered with Income Tax Department under section 12AA gets exemption in from Income Tax. Department has given a detailed process to complete the registration procedure and this whole process can be found under Section 12AA, that’s why this registration is commonly called as section-12AA registration.

We will try to provide complete details regarding 12AA registration with the help of Questionnaire as given below:

Who are eligible to apply for Section-12AA Registration?

Organizations such as Charitable Trusts, Religious Trusts, Societies and Section 8 Companies are eligible to apply for Section 12AA registration.

Which Application or Form needed to apply for Section-12AA Registration

Organizations who are willing to get registered under Section 12AA needs to file form 10A electronically with the help of Digital Signature of Authorized Signatory.

We have Private or Family Trust, can we apply for Registration under 12AA?

Private or Family Trust are not eligible to apply for Section 12AA registration.

Our Organisation engaged in some trading or other business, can we claim 12AA Registration ?

Yes, only to those applicants whose receipts from the trade activity are less than twenty percent of the total receipts of the assessee.

Is this mandatory to carry on charitable objects for getting the 12AA Registration ?

One of the primary criteria to receive registration under Section 12AA is that the purpose behind the existence of the organization is to do charitable job as defined in the Income Tax Act. Indulging in charitable activities include providing education, medical relief to the poor, and performing activities with the motive to prevent the environment.

What is the process of registration under Section 12AA ?

Fill Form 10A with all supportive documents,

Commissioner or Proper Office will check the details and may ask for more documents for more clarity, if needed.

On being satisfied, commissioner may forward the file to Registering Authority

The provision of Section 12AA(2) states that registering authority shall pass the order of granting or refusing registration before the expiry of six months from the end of the month in which the application was received.

.How long will it take to complete the process ?

Normally, it takes 1-3 months to complete the process.

What are the documents required for Section 12AA Registration ?

  • 12AA registration applicant needs to submit the following documents along with Form 10A:
  • Instrument’s self-certified copy which was used in the process of creating trust or establishing the institution shall be submitted.
  • The foundation or trust may have been made in any case than by method for drafting and registering an instrument. In such cases, a self-attested copy of the document confirming the creation of the trust, or foundation of the institution ought to be submitted to the Income Tax Department.
  • Provide a self-attested copy of the registration, which was made with the pertinent body. The relevant body might be the Registrar of Companies, the Registrar of Firms and Societies or Registrar of Public Trusts.
  • A self-certified copy of the document which serves as an evidence at the time of adoption or during alteration of the objective of the entity shall be submitted.
  • Financial report of the trust/institution for maximum three preceding financial year.
  • Note on activities which entity perform
  • There a few cases which may force Income Tax Department to cancel the registration issued under this section. Though once the assessee has resolved the issue he can file for the subsequent application. In such a scenario it is essential for the applicant to submit a self-certified copy of the existing order issuing registration.
  • In case assessee application has been dismissed, he needs to attach a self-certified copy of the order of rejection with the application.

If you still found any confusion, you may comment us in comment section given below the article.


Team OC

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