What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Assistance throughout the 12A/12AB registration process.
- Eligibility and documentation review before application submission.
- Proper preparation of the registration application and supporting information.
- Assistance in presenting the trust or institution’s objects and activities clearly.
- Support with responses to queries or clarifications raised by the Income Tax authorities.
- Guidance on ongoing tax and compliance requirements after registration.
- Better preparedness for maintaining the entity’s tax-exempt status.
How the engagement works
Registration for exemption under the Income-tax Act is governed by the applicable provisions relating to charitable or religious trusts and institutions, including Section 12A and the registration framework under Section 12AB, along with the relevant rules, forms, notifications, and procedural requirements. Eligibility and registration requirements depend on the legal status, objects, activities, documents, and other circumstances of the applicant. Registration does not by itself guarantee exemption for every receipt or activity; the entity must continue to satisfy the applicable statutory conditions and compliance requirements.
Scenario 1: A newly established charitable trust wants to obtain applicable Income Tax registration before commencing or expanding its charitable activities.
Scenario 2: An existing trust or institution needs assistance with the applicable 12A/12AB registration or re-registration process.
Scenario 3: A charitable organization wants professional help in preparing its registration application and supporting documentation.
Scenario 4: The Income Tax authorities request additional information or clarification regarding the trust’s objects, activities, finances, or governance.
Scenario 5: A registered charitable institution wants guidance on ongoing compliance requirements associated with its Income Tax registration.
Eligibility Assessment
We review the legal status, objects, activities, governing documents, and other relevant information to assess the applicability of the 12A/12AB registration framework.
Document & Information Review
We review the trust deed, registration documents, financial records, activity details, governing information, and other supporting documents required for the application.
Application Preparation
We assist in preparing the applicable registration application and supporting information in accordance with the requirements prescribed by the Income Tax authorities.
General questions
01What is 12A registration?
12A registration refers to the Income Tax registration framework applicable to eligible charitable or religious trusts and institutions for claiming exemption benefits under the relevant provisions of the Income-tax Act. The current registration framework includes Section 12AB.
02Who can apply for 12A/12AB registration?
Eligible charitable or religious trusts, institutions, societies, and other qualifying entities may apply, subject to the applicable provisions, conditions, objects, activities, and statutory requirements.
03Does 12A registration make all income of a trust tax-free?
No. Registration is an important condition for claiming applicable exemption benefits, but the exemption itself is subject to the conditions and compliance requirements prescribed under the Income-tax Act. The tax treatment depends on the nature of income and the circumstances of the entity.
04What documents are required for 12A registration?
Documents may include the trust deed or constitutional documents, registration certificates, PAN, details of trustees or governing members, financial statements, activity details, and other information prescribed for the applicable registration process.
05Can a new charitable trust apply for 12A/12AB registration?
Eligible newly established entities may apply under the applicable registration provisions. The exact process and documentation depend on the entity’s status, objects, activities, and the requirements applicable at the time of application.
06What happens if the Income Tax Department asks for additional information?
The application may require clarification or additional documentation. We can assist in reviewing the query, preparing the appropriate response, and submitting supporting information within the applicable timeline.
07Is compliance required after obtaining 12A/12AB registration?
Yes. Under the 12AB framework, approvals are granted for a 5-year block and require proactive renewal via Form 10AC before expiry. Registered entities must also continue to comply with relevant tax, accounting, Form 10BD/10BE donation reporting, audit, and filing requirements to maintain exemption benefits.
