To get exempted from paying income tax for the income of Indian Nonprofit organizations like Trust, Society, Foundation, and Non-profit Companies, They shall apply for 12A Certification with their concern's PAN Card Number. Immediately after registration or incorporation of such Trust, Society or any non-profit organization, they need to apply for 12A by filling the form 10A.
From the Date of establishment and immediately after the receipt of PAN Number for the nonprofit organization [trust, society or nonprofit company] it should apply for registration with Income tax department to get 12A certificate without fail. But it's not sure, If delayed in applying for registration more than a year, then the nonprofit NGO organization may need to submit Audit Reports for past financial years.
Now let's know how to apply for 12A, To get registered with the Income-tax department, Nonprofit NGO has to fill a form called FORM 10A and it has to be produced to the Commissioner of Income Tax, Income Tax Department Zonal office where your NGO organization is located.
If your NGO established in metropolitan cities like Delhi, Calcutta, Mumbai, and Chennai, then you have to produce the FORM 10A to the Director of Income Tax (Exemption), Income tax department office. Before submitting FORM 10a, please make sure that you have received PAN CARD for your nonprofit NGO organization.
When you produce the form 10A to the above Income tax department, you have also required to enclosed the proofs and copies of the following. ( You can download the 10A form here to get 12A certification which is editable )
1. Copy of Registration Certificate issued by Registrar or Charity Commissioner.
2. Basic documents of the organization, which evidencing the creation of the NGO should be enclosed, like Trust deed / Bye-laws / Rules and Regulations / Memorandum and Articles of Association as per the shape of the nonprofit NGO organization with Notary Public Attestation.
3. Detailed list of Trustees or Members with name, designation and complete address with every trustee's PAN Numbers and PAN Card Copies to be furnished.
4. Filled FORM 10A with Organization's PAN CARD Copy
5. Rare Case - If you failed to apply immediately within one year after registration or incorporation of your organization, Two copies of the Accounts of the current financial year or Three previous years may need to be enclosed. Where the NGO was not in existence in any of three prior years, copies of the accounts of for minimum years may also be submitted.
After you have produced the above FORM 10A either through registered post with acknowledgment due or directly in the Income Tax office, The department will overlook your application for fitness towards registration.
The Income-tax officers have the rights to grant or to refuse registration to your application. If the Income-tax office gets satisfied with your proper documents and with the genuineness of your organization, then you will be certified. If there is some correction or if they need some additional documents, they will notify you.
You are suggested to get assistance with your Tax Consultant or with your Auditor to proceed further.
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