Income Tax is a complex subject and it inspires fear in laymen. One big reason for this fear is the rate of tax at which individuals and firms pay taxes on their income. Since there are different slabs for different ranges of income, it is difficult to calculate a person’s tax liability. Some people seek the services of chartered accountants while others simply ignore paying their due share to the government exchequer.
This leads to a substantial loss of revenue each year as compared with what should have been collected by Government if all taxpayers had abided by law in letter and spirit.
Various remedial measures have been introduced over time, including self-filing for ITR and online documentation for easy proceedings. To increase the compliance rate in tax returns, the government has introduced section 12A, which is applicable to an Indian trust or a Section 25 company.
What is section 12A registration?
A section 25 company is incorporated with an aim of providing benefits for members of a mass which are not available from any other source. The most obvious example would be colleges that provide education and training to students under various schemes. These institutions follow a particular policy and abide by certain rules in accordance with their act of incorporation (The MCA 1956).
The institution charges fees every semester from the student who then files his return and pays taxes accordingly according to his income level. A section 25 company can apply for registration under section 12A if it fulfils all conditions required by law.
As per Section 2 (xxvi) (A) of the MCA 1956, a company that is being registered under section 25 would be eligible for registration under section 12A if it fulfils the following conditions:
These companies may avail certain tax benefits on some incomes like long-term capital gains, short-term capital gains. There are many benefits of registering under Section 12A.
Benefits of Section 12A Registration
For CAs in India working with ITR, 12A registration is a true blessing. It makes the paperwork and workload so much easier and thus helps CAs serve their clients and the nation better. And if you are dealing with regular ITR filing on a constant basis, we may have a solution for CAs in India to work faster, better and incur less costs in the process.
We know how rigorous the documentation and filing deadlines can be. That’s why we built the ideal solution for CA practice management.
Get Unpaper for your CA workflow management
That solution is Unpaper. CAs in India use Unpaper daily to manage their CAs practice using the easiest app for CAs that a software company can build.
Here’s how CAs can speed up ITR filing with Unpaper CA Practice Management Software:
Unpaper helps CAs file ITR through digital documentation and saves days of paperwork and hundreds of rupees in filing fees every year on each tax payer. CAs are registered to prepare & file their income tax returns ITR with a smart interface that is easy to use and extremely efficient. It also means CAs will be able to spend more time on planning, budgeting and analysis rather than dealing with paperwork associated with IT return preparation.
CAs admit that handling cash flow is one of the most challenging parts and Unpaper’s intelligent revenue management system along with the automated workflow has helped CAs in India scale up efficiently.
If you want to know more about the unique feature-packed CA practice management software, you can book a free demo and try Unpaper out for yourself.
Powerful work management tool.
Get in touch with us to get exclusive offers.
Copyright © Unpaper. All Rights Reserved