Query- Income Tax-Sec 12A

Dear SRRF members,
We have received a new query under Income Tax from Ms. Leela Tirthani

“The NGO should however be registered u/s 12A.” this mean if a NGO does not have 12A registration TDS will be deducted on the Grant-aid received ?”

Looking forward to your response.
With warm regards,

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in


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2 Responses to Query- Income Tax-Sec 12A

  1. Nachiappan Nedunchezhian says:

    Dear SRRF members,

    In response to query related to sec 12 A registration, If the NGO is not registered under section 12 of the IT Act 1961, the Net surplus will be taxed at the maximum income tax rate (30%+cess) applicable during that assessment year.


    warm regards
    Nedunchelian N

  2. BV Soma Sastry says:

    Dear Ms. Leela,

    Greetings from Hyderabad!

    12A is the certificate that exempts the NGOs from taxation. So any NGO receiving Grants should have the 12A registration with the IT Dept. This is not applicable in case of any kind of consultancy. Eg. CWS had a scrutiny notice from IT and we were instructed to submit the 12A certificates of all the partners (grass root NGOs) supported by us failing which we would have been slapped with a tax notice.

    Thanks and regards,
    B V Soma Sastry

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