12AB Registration || Xltax

12AB Registration!

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Acknowledging the important role played by the chantable institutions in the society, The Finance Ministryhas announced certain changes under the Income Tax Act for the Chantable Institutions and Section 12AB 15 one of them. Are you planning to get the 12AB registrations done by the Latest? Contact Corpbiz and get the 12AB Registrations done.

What are the Benefits of 12AB Registration?

Help In Providing Electronic Database

Section 12AB was introduced to provide an electronic database.

To Remove Odds From Old Trusts

The trust registered under the old section however have misplaced their registration number, nor the Income Tax Department have any records of the same. By introducing Section 12AB, the work will be done electronically.

Avoiding Difficulty Via Various Facilities

Due to non-commencement of any activities, newly formed Trusts are facing difficulties. Section 12AB has removed that the difficulties of the New trust by providing various facilities.

OUR INCREDIBLE PACKAGES

SECTION-8

₹ 11999/-

(All Inclusive)

Registration within 3 weeks

NOO Dorpon registrationi

Drafting & Filing the form 10A

Drafting & Filing the form 800

1248 Certificate

800 Certificate

Udhyam Registration (MSME)

TRUST

₹ 14999/-

(All Inclusive)

Regletration within 3 weeks

NGO Dorpon Registration

Drafting & Filing the form 104

Drafting & Filing the form 100

12AB Certificate

B00 Certificate

Udhyam Registration (MSME)

SOCIETY

₹ 19999/-

Registration within 3 weeks

NGO Dorpon Registration

Drafting & Filing the form 10A

Drafting & Filling the form 100

12A Certificate

800 Certificate

Udyom Registration (MSME)

Who are Eligible to take Registration under 12AB of the Income Tax Act?

1. To continue taking exemption under section 10 or 11, all the new and existing charitable & religious institutions (including NGOs) which are registered under the following section are compulsorily required to move to section 12AB for fresh registration, which are as follows:-

2. Section 12A, Section 12A, Section 10(23C), Section 80G

3. Also, various institutional trusts registered under section 10(23C) or section 12AA are required to renew their registration under section 12AB. Consequently, Section 12AA which stipulates the registration process for the Trusts or Institutions will cease to exist and a new section 12AB will come into force with effect from whichever is earlier:-

4. The date of grant of registration under section 12AB or

5. The last date by which the application for registration and approval is required to be made.

What Documents are Required for 12AB Registration?

Various documents are required for registration under 12AB. The list of documents required is mentioned below:-

1. In case of a company- Certificate of Incorporation and MOA

2. Copy of PAN Card of Trust

3. In case of a trust-Trust deed (2 self-attested copies by the Managing Trustee)

4. In the case of rented property, NOC from the Landlord is required.

5. To address Proof-Utility Bill Copy i.e. Electricity Bill, Water Bill, House Tax, etc. for the owned property.

6. Proof of welfare activity carried out by the trusts. Also, the progress report of the same for the last 2 years or since inception.

7. Books of Accounts, Balance Sheet, Income Tax return of the last 3 years or since inception (If any).

8. Particulars of Governing body or members of the trust/Institution

What is the Registration & Procedure for 12AB Registration?

The procedure for registration under Section 12AB of the Income Tax act 1961 is not defined as such. However, these steps are required to be followed:-

The application for 12AB can be made by filing Form 10A online on the income tax site incometaxindiaefiling.gov.in.

Form Section 12AB is available on the income tax website under Income Tax Forms Section under the e-file menu which is visible after login on the website.

The application shall be made online to the appropriate authority by Filing Form 10A along with the requisite documents to the Commissioner or Principal Commissioner.

After reviewing the application Commissioner or Principal Commissioner shall pass an order granting approval or rejection within 3 months from the date of commencement of new provisions.

Further, in the case where Commissioner or Principal Commissioner is not satisfied that the charitable trusts or institution, etc. have complied with the objects mentioned or with any other law, shall cancel the registration of charitable institution etc. However, the authority will provide a reasonable opportunity of being heard before canceling the registration.

What is the Validity of Registration granted under Section 12AB?

The registration granted under section 12AB remains valid for 5 years. However, in the case of Provisional registration, it shall be valid for 3 years. All the registration granted under section 12AB shall be subject to renewal as determined under the new scheme of registration.

What is the Division of Registration under 12AB?

As per the current way of registration effect from 1st April 2021, the registration can be divided into the below-mentioned categories:-

Existing trusts registered under 12A/12AA needs to be re- registered under Section 12AB.

Renewal of Registration granted under Section 12AB.

Procedure for 12AB Registration

Kindly utilize the steps given above to integrate legally and securely a 12AB Registration and get the benefits in the form of better-quality sales and satisfied clients. Our XLtax experts will be at your disposal for assisting you with guidance concerning 12AB Registration and its compliance for the smooth functioning of your charitable business in India. XLtax professionals will assist you in planning seamlessly at the least cost, confirming the successful conclusion of the process.

It is advisable that an attorney with “NGO experience” must be appointed to overwhelm many of the potential pitfalls that creep around within 12AB Registration and to understand the requirement in detail. The elementary information would be mandatory from your end to start the process. The Attorney will begin working on your request once all the information is provided, and the payment is received.

Why XLtax?

XLtax is one of the platforms which coordinate to fulfil all your legal and financial requirements and connect you to consistent professionals. Yes, our clients are pleased with our legal service! Because of our focus on simplifying legal requirements, they have consistently regarded us highly and providing regular updates.

Our clients can also track at all times the progress on our platform. If you have any questions about the 12AB Registration process, our experienced representatives are just a phone call away. XLtax will ensure that your communication with professionals is charming and seamless.

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FAQ Frequently Asked Questions

Q. What is the Validity period of Registration?

The registration of Section 12AB shall be valid for 5 years.

Q. To whom the application u/s 12AB shall be made?

The Online application shall be made to the Commissioner or Principal Commissioner of Income Tax who shall pass an order granting approval or rejection within 3 months from the date of commencement of the new provision.

Q. How can trust or institutions apply for 80G exemption?

To claim an exemption for 80 G, the following details have to be submitted in the Income Tax Return- Name of the recipient.
PAN number of the recipient.
Address of the recipient.
Amount of contribution made.

Q. What is Provisional Registration?

Provisional registration has been introduced for granting income tax exemption to newly formed organizations that are planning to carry out charitable activities. Provisional registration is granted for3 years without conducting detailed inquiry by the department and even if the organization has not commenced its activities.

Q. Whether the 12AB registration can be done manually?

No, as per the new provisions a Unique Registration Number (URN) shall be allotted to the trust which implies that the previous registration number shall be void after 01.04.2021.

Q.Whether the same registration number is issued to the charitable trust registering under 12AB registration?

To avoid the discrepancies that occurred in the Old trust registration process ,the Finance Bill 2020, wants to consolidate all trust data to provide an electronic database.

Q. Why all the charitable trust needs to get register under Income Tax under Section 12AB?

To avoid the discrepancies that occurred in the Old trust registration process ,the Finance Bill 2020, wants to consolidate all trust data to provide an electronic database.

Q. Who are eligible for 12AB Registration?

To continue taking exemption under section 10 or 11 all the existing charitable and religious institutions (including NGOs) are compulsorily required to move to section 12AB for fresh registration which are registered under the following section- Section 12A
Section 12AA
Section 10(23C)
Section 80G

Q. What is the validity period for Provisional Registration?

What is the validity period for Provisional Registration?