Section 12A And 80G Registrations
12A and 80G are the two registrations granted by Income Tax Department to NGOs to allow them in Tax Exemption and permitting Deduction on Donations by the donors. A 12A and 80G registered NGO is more acceptable to receive prosperous funding and various tax reliefs. If you’re eligible for these registration, avail our 12A and 80G Registration Package, which is a 100% guaranteed service. Go through its details and know how it works THE BEST.
12A and 80G Registrations in India – An Overview
NGO (Non-Government Organization) is established solely to serve non-profit humanitarian purpose in the form of Charitable Trust/Society/Section 8 Company and once such entity is formally registered it is approved of a bunch of tax exemptions, benefits, reliefs as well as provision of tax deductions for the donors. For that, 12A and 80G registrations are mandatory, otherwise, ANY income an NGO earns, like, service/production/donation, will be taken as normal taxable income without considering the purpose of such income. NGOs with 12A and 80G Certificates gets an upgraded commercial value than its counterparts without such certificates:
- Provision of Government Funding allowed ONLY to such NGOs
- A 12A registered NGO is permitted of utilising tax exempted income for its lifetime
- Being permitted of providing valid donation receipts (printed with 80G registration ID) allowed for tax exemptions, NGOs with 80G Certificate receives more donors
- 12A registration is compulsory part in getting 80G registration
- 12A and 80G registrations can be taken together or separately.
- Private/Family Trust NOT eligible for 12A Certificate
Benefits of 12A And 80G Registration
- More capital allowed for charitable activities through tax exemption over NGO income.
- Funds and Grants are permitted from recognized Agencies, Government and International sources.
- ONLY 12A and 80G registered NGOs are permitted to accept International funding with exemptions available under Foreign Regulation Act, 2010 or FCRA.
- Attracts more donors expanding the scope of fulfilling the NGO objectives.
- More operational exposure and status value when the NGO is registered and obtains 12A and 80G registration.
- Both 12A and 80G are one-time registrations and valid for an NGO’s lifetime.
Eligibility for 12A and 80G Registrations
- NGOs working as Public Charitable Trust or u/s 25 of the Companies Act, 1956 working ONLY for the public welfare are allowed for this provision.
- Donation as permitted u/s 80G is allowed for tax exemption
- NGO assets should ONLY be used for charitable purposes.
- NGOs should correctly maintain Books of Account of its expenditures and receipts.
NGO 80G registration can be cancelled in these cases:
- If NGO runs the promotion/benefit of religion/community/caste.
- If NGO receives funds/gifts from Political Parties/International sources.
- In case, NGO works as a commercial profit based unit.
- NO NGO member is permitted for making commercial profit based earning under NGO’s operational activities. In case, such income is received, it should be separated from NGO income. There should be separate Books of Accounts for such income.
- ANY misuse of the 80G provisions can result in the cancellation of this certificate.
Our Package is offering You:
- Drafting 12A Certificate Application
- Drafting 80G Certificate Application
- 12A and 80G Application Filing and Follow-up
Documentation for 12A and 80G Registrations
Essential Documents for both 12A and 80G Registrations
- Copy of PAN card of registered applicant NGO
- Certificate of Incorporation of NGO
- Trust Deed (in case, a Trust) or Memorandum of Understanding (MOA), Article of Association (AOA) of Company (in case, a Society/Section 8 Company)
- Complete list of welfare activities
Essential Documents ONLY for 12A Registration
- A duly filled in form 10 A
- Consecutive 3 years Financial Statements (in case, the NGO is active prior to the FY when application of registration is submitted)
Essential Documents ONLY for 80G Registration
- Address proof of Registered Office of NGO
- If you own the Registered Office, provide property papers.
- If the Registered Office is rented/leased, legal agreement of the same.
- Utility bills, such as, Electricity bill, Telephone/Mobile bill, etc.
- List of donors along with their address and PAN
- List of governing board of trustee’s members with their contact details
12A Registration Procedure
Note: ONLY when a NGO is registered, it can apply for 12A Registration.
STEP-1) Filing 10A Form
10A Form should be filled online furnished with relevant documents as per rule 17A of the Income Tax Act, 1962 to Jurisdictional Principal Commissioner/Income Tax Commissioner.
Commissioner will be checking the details of the application and may ask for additional documents/information, if required. Such queries should be responded properly otherwise may lead to rejection of application.
STEP-3) Issuance of 12A Certificate
You’ll be granted a lifetime 12A Certificate for your registered NGO once the Income Tax Commissioner is convinced with its purpose and validity.
Now, your establishment is legally approved NGO with the lifetime provision of tax exemption under Section 12A.
80G Registration Procedure
Note: 80G Registration is granted as per the Rule 11AA of Income Tax Rules, 1962.
STEP-1) Filing 10G Form
10G Form should be filled and signed properly online furnished with relevant documents to verify the Return of Income u/s 140 to the Principal Commissioner or Commissioner, as applicable.
The authorized official will conduct a thorough review of your application and may ask for additional documents/information, if required. Such queries should be responded properly otherwise may lead to rejection of application.
STEP-3) Issuance of 80G Certificate
Once satisfied with the standard, relevance and authenticity of your application, your NGO will be granted a lifetime 80G Certificate from the Income Tax Department of India.
Now, your establishment is legally approved NGO with the lifetime provision of tax exemption under Section 80G.
FAQs of Section 12A and 80G registration
12A registration is issued to the trusts and the other non-profit organizations by the income tax department. It is aimed at providing the exemption to those registered trusts and organizations. 80G registration comes under section 80G. And it is provided to those organizations that are registered as NGOs, and non-profit organizations.
Any trust, non-governmental organization, non-profit organization, or section 8 company can apply for the 80G registration.
Donations made towards any government-approved local authority, association, or institution are completely eligible for the deduction.
All the NGOs are eligible for the registration of 80G and are listed on the website of the income tax department. You can your NGO/trust by visiting the https://www.incometaxindia.gov.in/Pages/default.aspx.
A trust can be registered under section 12A. You can complete the registration from the website of the income tax department.
Section 80G allows 50% of your donations made towards the funds or organizations.
It depends on the methods of your application. If the application is submitted under sections 12A and 80G, it usually takes 3 to 4 months.
You must renew your 12A certificate every five years within 30 days of the issued date.
The certificate under 80G is valid for 5 years from the date of revalidation.
You can apply for the renewal of 12A and 80G via online procedures from the website of the income tax department.
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