Finally we got 12A. Please see the attached 12A Certificate. Every NGO should get this Certificate to get Income Tax exemption for the NGOs Income.
WHY 12A:- An NGO needs to register itself with Income Tax Department U/s 12AA for availing exemption of its income from income tax. From the Date of establishment of an nonprofit ngo organization like trust, society or nonprofit company, it should apply for registration with Income tax department to get 12A certificate. If delayed in applying for registration then the nonprofit ngo organization should submit Audit Reports for the past three years or as may be available.
The activity of an NGO is towards the society and is normally for public utility and charitable purpose. It is very difficult if not impossible to arrange funds for such noble work. It is precisely because of this income of NGOs are normally exempted from Income Tax. However, there are certain rules and regulations,and guidelines which an NGO must follow to get such exemption. The most important rule relating to this is registration of the NGO under the Income Tax Act. Section 12A of the Income Tax Act deals with application for registration. Section 12AA of the income tax deals with actual process of registration.
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