12A Registration
Exempt the NGO's own income from tax.
Without 12A registration a charitable organisation is taxed on its income like any other entity. With it, income applied to the objects is exempt, subject to the 85% application test each year.
Since 2021 registration is provisional for three years first, then must be revalidated in Form 10AB within six months of the provisional period ending or of activities commencing. Missing the revalidation window is the most common way exemption is lost.
Applications are refused most often where the objects are not exclusively charitable within section 2(15), or where the accounts do not evidence the activity claimed.
What is included
- Objects reviewed against section 2(15)
- Form 10A or 10AB application
- Activity report and accounts compiled
- Departmental queries answered through to the order
What we need from you
- Trust deed, society memorandum or MOA/AOA
- PAN of the organisation
- Accounts for up to three prior years
- Activity report and trustee or director details
Questions
What happens if 12A registration is not revalidated?
The exemption lapses and the organisation is taxed as an ordinary entity, including on donations received. Revalidation in Form 10AB is due within six months of the provisional registration expiring, and the window is not generally extended.
Also in Licences & registrations
Talk to us
Get started with 12A Registration
Tell us a little about the business and a chartered accountant will call you back. You will get a firm quote before any work begins.
- A qualified accountant on the call, not a call centre
- A firm quote before any work begins
- Your details are never sold or shared