Lucknow Consultant

12A registration

12A registration in Lucknow, Uttarpradesh is the process of registering a charitable trust or society under Section 12A of the Income Tax Act, 1961 in Lucknow. This registration is done with the objective of obtaining tax exemptions for the trust or society.

Legal Provisions: Section 12A of the Income Tax Act, 1961 lays down the provisions for registration of charitable trusts and societies. According to this section, a trust or society can be registered as a charitable trust or society if it is established for charitable purposes and the income of the trust or society is applied for the promotion of those purposes.

Advantages:

  1. Tax exemptions: Registered trusts and societies are eligible for tax exemptions on their income.
  2. Credibility: Registered trusts and societies are considered more credible and trustworthy than unregistered ones.
  3. Legal recognition: A registered trust or society is recognized as a legal entity and can enter into contracts and hold property.

Disadvantages:

  1. Stringent conditions for registration and maintenance of the trust or society
  2. Regular reporting and disclosure requirements to the income tax department
  3. Risk of de-registration if the trust or society fails to fulfill legal requirements

Process:

  1. Application for registration under 12A is to be made to the Income Tax Department in the prescribed form
  2. The Income Tax Department verifies the documents and conducts an inquiry into the trust or society’s activities
  3. The Income Tax Department may grant or reject the application for registration

Costs: The costs associated with registering a trust or society under 12A include the cost of printing and submitting the necessary documents, as well as any legal or consulting fees that may be incurred.

Types:

  1. Charitable Trust
  2. Charitable Society

Documents required:

  1. An application in the prescribed form
  2. A copy of the trust’s or society’s constitution
  3. A list of office bearers and members of the trust’s or society’s highest decision-making body
  4. An affidavit stating that the trust or society does not have any affiliations with any organization that is banned or illegal
  5. Audited financial statements of the trust or society
  6. PAN Card of the Trust or Society.

Note: This is general information and the actual process and requirements may vary. It’s always a good idea to check with the Income Tax Department for the most up-to-date information and guidance.