12A registration online is essentially a one-time registration granted by the Income Tax Department to trusts and other not-for-profit institutions to claim tax exemption. Generally, 12A registration is done immediately after the incorporation of a Section 8 company. The purpose of this article is to inform you about 12A registration, 80G registration, 80G renewal, and 80G deduction.
All Non-Profit Organisations and Charitable organizations that have been registered under Section 8 are instructed to register their firm under Section 12A to procure exemptions in taxes. As per the Income Tax Act 1961, all Section 8 companies can seek registration to claim dispensation in taxes, provided that the requisite conditions are satisfied.
According to the new compliance delivered for in the Income Tax Act with references to the 12A/12AA and 80G registration, all NGOs having exemption u/s 12AA shall have to obtain a new registration u/s 12AB on or before March 31, 2022. The new concept of 12AB registration is aimed at removing the perpetual exemption of taxes and the registrations would be renewable every 5 years.