12AA License Assistance refers to the process of obtaining registration under Section 12AA of the Income Tax Act, 1961 for organizations or trusts that are established for charitable or religious purposes. This registration allows such entities to claim exemptions on their income, ensuring they are not subject to income tax on funds used for charitable activities.
To obtain a 12AA registration, the organization must apply to the Income Tax Department and submit documents outlining its objectives, activities, and the manner in which it spends its income. The department evaluates whether the organization qualifies as a charitable or religious entity under the provisions of the Income Tax Act.
Once registered, the organization enjoys tax-exempt status, which helps it focus more resources on its charitable work. Assistance in obtaining a 12AA license ensures that all the necessary documentation is in order and that the registration process is completed smoothly.
