12a Registration application Process in West Bengal:
We are Leading 12a Registration Consultancy in West Bengal . 12a Registration Application Process in West Bengal Consists Of : Apply for an 12a certificate to the Commissioner of Income Tax (Exemption) In Kolkata , West Bengal along with the required documents ; An on-premise inspection is done by the Income Tax department after the form, and the required documents for 12a registration are submitted ; Upon satisfactory verification of documents and the office of the NGO, 12a certificate is granted to the institution by the Commissioner .
About 12a Registration in West Bengal under Income Tax Act, 1961
Registration of ngo , society , trust or charitable institutions under Section 12a does not provide any direct benefits to them. The ngo , society , trust or charitable institutions register themselves under Section 12a to enable the donors who contribute to them to avail certain tax benefits on their contributions. The registration under section 12a of charitable institutions is to incentivise their donors to make contributions. However, only the NGOs that have registered under both Section 12A and 80G are eligible for availing of government funding.
Eligibility for 12a Registration in West Bengal :
Before going into the benefits of 12a Registration to ngo , society , trust , it is essential to learn the eligibility for registration. These include:
- Generating no income from business activities.
- Being structured as charitable trusts, registered societies, or Section 8 companies.
- Utilising assets and income solely for charitable purposes.
- Maintaining accurate and transparent records of their organisational activities.
- Ensuring that owners or trustees do not unduly benefit from the organisation’s funds.
- Avoiding activities that favor a particular religion or caste.
Documents Required for 12A Registration in West Bengal :
1. Copy of Registration Certificate.
2. Copy of Trust Deed / Society Deed/MOA.
3. Copy of PAN.
4. Copy of 12A Certificate or Acknowledgement of application of 12A.
5. Copy of last 3 years Audit Reports, if any.
6. Note on Activities for last 3 years, if any.
Step by Step Process of 12A Registration in West Bengal :
First step Apply for PAN card, This will the birth of Trust in the eyes of Income Tax Department.
Second step Compiled the given Above documents for applying registration u/s 12A .
Third Step on compiling the above documents with covering letter, the responsible person shall submit the documents before Commissioner of Income Tax within which NGO jurisdiction lies.
Fourth Step NGO will receive notice for clarifications from Income Tax Department in 2-3 months after applying.
Fifth Step Reply of notice will be submitted by the responsible person of NGO along with all relevant desired documents to the Income Tax Departments.
Last Step Exemption Certificates will be issued.
Benefits of 12A Registration in West Bengal :
The benefits of 12A to ngo , society , trust or charitable institutions are manifold. Let us first discuss the benefits of 12A registration:
1. Tax Exemption:
Organisations holding a 12A certificate are exempted from paying income tax on their generated income. This substantial tax relief allows them to allocate more resources towards their charitable and philanthropic activities.
2. Access to Grants and Funds:
12A registration enhances an institution’s credibility, making it eligible to receive grants, funds, and support from both government agencies and international organisations.
3. Proof of Existence:
The 12A certificate serves as a legitimate proof of the institution’s existence. This documentation can be crucial in establishing the organisation’s credibility and eligibility for government schemes, and funds, streamlining the process of financial support.
