What Every ngo should know about 12a registration

Understanding 12a registration is important for NGOs aiming to secure tax exemptions and enhance credibility. Section 12a of the Income Tax Act allows ngos to attain tax-exempt status, making donations extra appealing to contributors. This registration method includes filing an application with particular organizational documents, monetary statements and a clear cause aligned with charitable objectives. Once registered, NGOs can experience blessings like exemption from earnings tax, expanded donor self belief and eligibility for presents. However, maintaining compliance with regulatory requirements and timely renewal is important to preserve this popularity. In summary, 12a registration is a vital step towards setting up credibility and ensuring the monetary sustainability of an NGO.