what is 12a

12a of the Indian Income Tax Act is related to the provisions of assessment of profits and taxation related to charitable institutions. In particular, it ensures that companies are allowed to be free from income tax, if they can be installed for charitable tasks, along with poor, school education or comfort of scientific comfort. To qualify for this exemption, those institutions must sign below section 12a, preserve unique accounts and comply with rules. This framework encourages philanthropy by ensuring that the budget generated is applied to social welfare activities, resulting in the wider community and makes public outstanding sales.