12A And 80G Registration in india
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.
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.
- 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.
STEP-2) Verification
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.
STEP-4) CONGRATULATIONS!!
Now, your establishment is legally approved NGO with the lifetime provision of tax exemption under Section 12A.
