It is an important process to make an application of 12a registration to get the exemption to income tax in India. Section 12a the registration granted by the Income Tax Department to charitable bodies provides the legality required to smoothly carry on the operations as well as being able to avail the taxation benefits that the organisation enjoys. Before an organization can commence the application process, it should ensure that it qualifies with the Indian law as a charitable trust, society or any other form of non-profit organizations. The application process is usually done online with the Income Tax Department portal in which all the required documents should be attached along with the certificate of registration of the organization, memorandum of association the rules and regulations and the name of the trustees or the members of the governing body. 

After the application is filed the department goes through the documents to prove that the organization is charitable in nature of its work and its goals are with regard to the welfare of the public. The first criteria is that the activities of the organization must be purely charitable non-profitable and does not engage in any ventures that are profit oriented. After successful verification the Income Tax Department initiates a 12a registration certificate which does not only help the organization to seal its charitable status but also provides it with the flexibility of claiming exemptions on income taxes. This exemption saves a lot on financial burden to the organization hence; more funds can be chalanged to their charitable services. 

Moreover, due to 12a registration the organization becomes more credible and people, corporates and other institutions will get ready to make donations as the donors can earn tax benefits under section 80g of the Income Tax Act, 1961. This forms a positive relationship of funding and growth to the organization. Equally of note is that in order to continue to enjoy the 12a status it is necessary to continue to keep up with the regulatory requirements so that in this case whereby an annual returns are required to be filed and in maintaining proper accounts. Taking into consideration the overall advantages of making an application to register a 12a organization, it has its impact on the financial entity and proving the organization as a legitimate and dedicated institution towards service of the people in which there is build up of trustability and long term growth within the community.