The benefits of section 12a

Section 12a of the Income Tax Act provides vast advantages for taxpayers particularly those strolling charitable organizations. It allows registered ngos trusts and institutions to experience tax exemptions on their income provided they apply for and meet the requirements for registration under this segment. This encourages donations and presents as members can claim deductions below section 80g enhancing budget for social reasons. Furthermore section 12a promotes transparency and accountability in the economic operations of charitable entities ensuring that budget are utilized for designated purposes. Overall it supports voluntary sector boom and disaster comfort efforts fostering social welfare.