12A Registration Process for Trusts

If you are registering a Trust under Section 12A of the Income Tax Act, here is the detailed process:

1. DOCUMENTS REQUIRED FOR 12A REGISTRATION (FOR TRUSTS ONLY)

A. TRUST REGISTRATION DOCUMENTS

- Trust Deed (Mandatory) – A registered trust deed is required.

- Registration Certificate – Issued by the Sub-Registrar under the Indian Trusts Act.

- PAN Card of the Trust – Must be in the name of the trust.

B. TRUSTEE & OPERATIONAL DOCUMENTS

- List of Trustees with Contact Details (Names, PAN, Aadhaar, Address).

- Trustees' Aadhaar and PAN Copies (For verification).

- Trust Bank Account Details (Cancelled Cheque or Bank Statement).

- Details of Activities & Beneficiaries – Past & proposed charitable work.

C. FINANCIAL DOCUMENTS

- Audited Financial Statements (If Trust is older than 1 year)

- Income & Expenditure Account & Balance Sheet (If applicable)

- Donations Received Statement (If any)

D. COMPLIANCE & SUPPORTING DOCUMENTS

- Affidavit by Trustees stating:

  • No profits will be distributed to trustees/members.
  • Trust is engaged in charitable activities.
    • Declaration of Non-Commercial Activities – Confirms that the Trust operates for charitable purposes only.
    • Details of Similar Work Done (if applicable).

2. STEP-BY-STEP PROCESS FOR 12A REGISTRATION (TRUSTS ONLY)

STEP 1: REGISTER ON THE INCOME TAX E-FILING PORTAL

  1. Visit the Income Tax e-Filing Portal: https://www.incometax.gov.in.
  2. Log in using the Trust’s PAN (as a Non-Profit Organization).
  3. Navigate to ‘Income Tax Forms’ → Select ‘Form 10A’ (Application for 12A Registration).

STEP 2: FILL FORM 10A ONLINE

  1. Trust Details: Name, PAN, Date of Registration, Address, and Contact Details.
  2. Trustee Information: Names, PAN, Aadhaar, and Contact Information of all trustees.
  3. Bank Details: Trust’s operational bank account details.
  4. Activities & Objectives: Mention charitable purposes (education, health, poverty relief, etc.).
  5. Upload Required Documents in PDF format.

STEP 3: SUBMIT FORM & ACKNOWLEDGE IT DEPARTMENT REQUEST

  1. After submission, the application is forwarded to the Income Tax Exemption Unit for review.
  2. A Unique Acknowledgment Number is generated.

STEP 4: SCRUTINY & ADDITIONAL REQUIREMENTS

  1. The Income Tax Officer (ITO) may request:
    • Additional documents.
    • Clarifications on activities.
    • Physical verification of the trust’s address & operations.
  2. The Trust must respond to queries within the stipulated time.

STEP 5: GRANT OF 12A REGISTRATION CERTIFICATE

  1. If approved, the IT Department issues the 12A Certificate digitally.
  2. This certificate is valid for 5 years (renewal is required thereafter).

3. Post-Registration Compliance for Trusts

- Filing Income Tax Returns (Even if exempt, annual filing is mandatory).

- Maintain Proper Books of Accounts & Audit Reports (If receipts exceed ₹2.5 lakh).

- Utilize Income for Charitable Purposes Only (No profit distribution among trustees).

- Apply for 80G Registration (Optional, allows donors to claim tax deductions).

 

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