Is 12A registration and Bank Account mandatory immediately after starting NGO

QUERY

FROM: Sarita Naik

"Dear sir / Madam

Our NGO was officially registered in Maharashtra on the 8th of May 2014 and we have got the pancard.  But we haven't opened the bank acct yet. And we haven't applied for 12A either. We were not aware of the fact  that we have to do it within the six months of the registration.My question is;

1) Are we in trouble if we open the bank acct now, which has been exactly 6months plus after the registration. Is there a penalty to be paid.

2) same concern for 12a , for not applying on time.

3)And which bank should we go through?

Your response is much appreciated. 

Thank you very much!

ANSWER

Hi Sarita,  

Thanks for posting your query, get your answers from below:

1. First of all, I do not know, who has told you that bank account and 12A registration is to be applied for immediately after registering the NGO. 

Please keep this in mind that there are no such clause in Income Tax Act that 12A should be applied immediately and it is also not mandatory to get 12A registration. NGO can apply for 12A whenever it wants to get Income exemption but income exemption will be applicable only from year the registration is applied for.

Secondly regarding Bank Account opening, there are no such clauses in any State or Central Act applicable to a NGO, so in your case also there is no such applicability.

2. Since there is no such clause thus there is no penalty, but opening a Bank Account immediately is always good for any organisation. Please do it immediately. Know regarding Bank, its upto you at which Bank you want your account and will depend on personal advantages from the Branch of the bank.

3.12A can be applied anytime, so no worries for that to. But if there are any taxes before registration you will have to pay when you file your Annual Audit Reports and Income Tax Return.

Hope this will help you, feel free to ask any future queries:

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