12a registration is a one-time registration which is granted by the Income Tax Department to trusts and other not for profit organisations. The purpose of the registration is to be exempted from the payment of income tax. 12a registration is generally applied for immediately after incorporation. The 12a registration facility is available for all non-profit entities. Hence, it is necessary for all Trusts, NGOs and other Not-for-Profit organisations to be aware of Section 12a of the Income Tax Act.<\/p>\n\n\n\n
ATMA Foundation is a Charitable Trust in Kerala Committed to empowering individuals and families to lead happier lives with healthier relationships, and to bring positive change in the community.<\/p>\n\n\n\n
In order to qualify for registration under Section 12a, the organisation should meet the definition of charitable purpose as Defined in the Income Tax Act. Charitable purpose means relief to the poor, education medical relief and activities undertaken with the objective of preserving the environment. The pursuit of any other objective of a public utility will also qualify for a charitable purpose.<\/p>\n\n\n\n
The primary qualifying criterion will be to check whether there is any profit motive involved in the activities carried on by the assessee. In the absence of a profit motive, registration shall be granted.<\/p>\n\n\n\n
If the assessee is carrying on activities related to trade or commerce, then the facility granted under this section is restricted. In such cases, registration is granted exclusively if the receipts from the trade activity are less than twenty percent of the total receipts of the assessee.<\/p>\n\n\n\n
Also it may be noted that 12a Registration is not applicable for Private or Family Trusts. The activities of the assessee should be genuinely for the benefit of the public.<\/p>\n\n\n\n