{"id":7805,"date":"2025-07-15T07:54:55","date_gmt":"2025-07-15T07:54:55","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7805"},"modified":"2025-07-15T07:54:56","modified_gmt":"2025-07-15T07:54:56","slug":"section-12a","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-12a\/","title":{"rendered":"Section 12A"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-12a\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 12A<\/a><\/strong> is a rule that lets <strong>charitable and religious trusts or institutions<\/strong> get <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a> exemptions<\/strong> on their income.<\/p>\n\n\n\n<p>Think of it like this:<br>If a trust helps society (like running a school, hospital, or food bank), it shouldn&#x2019;t have to pay tax on donations or income. But to claim this benefit, the trust must <strong>register under Section 12A<\/strong>.<\/p>\n\n\n\n<h2 id=\"purpose-of-section-12a\" class=\"wp-block-heading\">Purpose of Section 12A<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To promote <strong>non-profit activities<\/strong><\/li>\n\n\n\n<li>To <strong>exempt income<\/strong> of eligible charitable or religious organizations<\/li>\n\n\n\n<li>To ensure only <strong>genuine institutions<\/strong> get tax benefits<\/li>\n<\/ul>\n\n\n\n<h2 id=\"who-can-register-under-section-12a\" class=\"wp-block-heading\">Who Can Register Under Section 12A?<\/h2>\n\n\n\n<p>The following can apply:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Charitable trusts<\/strong><\/li>\n\n\n\n<li><strong>Religious trusts<\/strong><\/li>\n\n\n\n<li><strong>Non-profit NGOs (registered as trusts or societies)<\/strong><\/li>\n\n\n\n<li><strong>Section 8 companies<\/strong> (non-profits under Companies Act)<\/li>\n<\/ul>\n\n\n\n<h2 id=\"eligibility-criteria\" class=\"wp-block-heading\">Eligibility Criteria<\/h2>\n\n\n\n<p>To be eligible for Section 12A registration, the organization must:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Be formed only for <strong>charitable or religious purposes<\/strong><\/li>\n\n\n\n<li>Not use income or <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/assets\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>assets<\/a> for personal benefit<\/li>\n\n\n\n<li>Keep <strong>proper books of accounts<\/strong><\/li>\n\n\n\n<li>Be legally registered as a <strong>trust, society, or Section 8 company<\/strong><\/li>\n\n\n\n<li>Apply for registration within <strong>1 month of starting charitable activity<\/strong> (though late registration is allowed)<\/li>\n<\/ol>\n\n\n\n<h2 id=\"how-to-register-under-section-12a\" class=\"wp-block-heading\">How to Register Under Section 12A?<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Apply online via <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> portal<\/strong> using Form <strong>10A<\/strong><\/li>\n\n\n\n<li>Upload documents like:\n<ul class=\"wp-block-list\">\n<li>Trust deed or registration certificate<\/li>\n\n\n\n<li>PAN of the organization<\/li>\n\n\n\n<li>Details of trustees or office bearers<\/li>\n\n\n\n<li>Financials (if any)<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Income Tax Department may ask questions or documents<\/li>\n\n\n\n<li>If all is clear, <strong>registration is granted<\/strong>&#x2014;usually valid for <strong>5 years<\/strong>, renewable<\/li>\n<\/ol>\n\n\n\n<h2 id=\"benefits-of-section-12a-registration\" class=\"wp-block-heading\">Benefits of Section 12A Registration<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Tax Exemption<\/strong>: Income used for charity is not taxed<\/li>\n\n\n\n<li><strong>Eligibility for 80G<\/strong>: Donors can also get tax benefits<\/li>\n\n\n\n<li><strong>Credibility<\/strong>: Helps with funding and CSR approvals<\/li>\n\n\n\n<li><strong>Carry Forward Surplus<\/strong>: Allows unused income to be carried forward<\/li>\n<\/ol>\n\n\n\n<h2 id=\"what-happens-without-12a-registration\" class=\"wp-block-heading\">What Happens Without 12A Registration?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The trust or NGO will have to <strong>pay tax like a business<\/strong><\/li>\n\n\n\n<li>Donations and grants may become <strong>taxable income<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"simple-example\" class=\"wp-block-heading\">Simple Example:<\/h2>\n\n\n\n<p>An NGO running free eye checkups in villages gets &#x20B9;10 lakh in donations.<br>If it&#x2019;s <strong>registered under Section 12A<\/strong>, this amount is <strong>not taxed<\/strong> if used for the NGO&#x2019;s work.<br>Without registration, they may pay <strong>income tax<\/strong> on the &#x20B9;10 lakh.<\/p>\n\n\n\n<h2 id=\"validity-renewal\" class=\"wp-block-heading\">Validity &amp; Renewal<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>New registrations are usually valid for <strong>5 years<\/strong><\/li>\n\n\n\n<li>Must be <strong>renewed before expiry<\/strong><\/li>\n\n\n\n<li><strong>Provisional registrations<\/strong> are available if you&#x2019;re just starting<\/li>\n<\/ul>\n\n\n\n<h2 id=\"conclusion\" class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Section 12A helps genuine charitable and religious groups <strong>save tax and focus on good work<\/strong>. If you run an NGO or trust, getting registered under this section is a must. It builds trust, saves money, and opens doors to more funding.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 12A is a rule that lets charitable and religious trusts or institutions get tax exemptions on their income. Think of it like this:If a trust helps society (like running a school, hospital, or food bank), it shouldn&#x2019;t have to pay tax on donations or income. But to claim this benefit, the trust must register [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7805","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7805\/revisions"}],"predecessor-version":[{"id":7806,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7805\/revisions\/7806"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}