The 12A registration process for charitable trusts and NGOs has undergone significant digital reforms, making it much more efficient. The entire application is now online via the Income Tax e-filing portal, with options for e-verification using DSC or EVC. A centralised processing system and time-bound approval mechanism aim to speed up the process, with registrations typically approved within 3 months and a unique registration number automatically issued.
In recent years, the online 12A registration process has seen several digital and policy reforms that have significantly improved its efficiency. These changes aim to simplify compliance for NGOs, trusts, and charitable institutions seeking tax exemption under Section 12A of the Income Tax Act.
Thi
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to
CCI PRO
for unlimited access
Why Upgrade to
CCI PRO?
-
No Ads
-
WhatsApp Broadcasts
-
Daily E-Newsletter
-
Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member?
Login here
for an ad-free experience.
The 12A registration is a permission granted by the Income Tax Department to NGOs, trusts, and charitable organisations, allowing them to be exempt from paying income tax on the donations or funds they receive.
The process has shifted entirely online to the Income Tax e-filing portal using Form 10A for fresh registrations or Form 10AB for renewals. It now includes e-verification options and a centralised processing system.
The updated process offers benefits such as time-saving due to faster approvals, increased transparency with real-time status tracking, a lower compliance burden, and remote accessibility as it's a fully paperless system.
With the updated process and if all documents are in order, registrations are processed within a defined time, typically 3 months or less.
Once approved, a Unique Registration Number (URN) is automatically generated. This URN is valid for 5 years and simplifies future renewals and tracking.