Glossary
12A
Section 12A of the Income Tax Act, 1961
12A registration is a one-time tax exemption granted to trusts, NGOs, and Section 8 companies, exempting their surplus income from income tax, provided the funds are used for charitable or religious purposes as defined in the law.
Where it appears in practice
It matters when an NGO wants to avoid paying income tax on its surplus funds, ensuring maximum resources are deployed for charitable activities rather than tax payments.
A worked example
A trust receives ₹10,00,000 [VERIFY] in donations. With 12A registration, if it applies at least 85% [VERIFY] of this income towards its charitable objectives, the entire income is exempt from income tax.
Related terms
- 80G
- Trust
- Section 8 Company
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
NGO Services