Overview - NGO Registration under 12A and 80G

Once an NGO (Non-Governmental Organization) is formally registered a Charitable Trust/Society/Section 8 Company for the sole purpose of serving non-profit humanitarian purposes gets a wide range of tax exemptions, advantages, allowances, and the provision of tax deductions for donors.

The essential requirement to obtain these advantages and tax exemptions is 12A and 80G Registration. Non-governmental organisations (NGOs) need to register under sections 12A and 80G of the Income Tax Act if they want to avoid having their goods or service or donation income taxed as regular income.

What is 12A Registration Online ?

Section 12A Registration or 12A Registration online is an application procedure through which a NGO can get Certificate of Exemption from the Income Tax Department in India. NGOs incorporated under Section 12A do not have to pay income tax since they are legally exempted.

Since 12A Registration Online is legally recognised evidence of your NGO's existence, it is helpful in obtaining validation from foreign governments and organisations.

Benefits of 12A Registration Online :

1. Nonprofit organisations having 12A Registration have their income exempted from taxation.

2. NGOs can ask for funding from any national or international government department or agency.

3. Non-governmental organisations (NGOs) can also get profit from FCRA registration after getting 12A Registration Online.

4. 12A Registration online validates the legal existence of your NGO.

What is 80G Registration ?

The Income Tax Department will grant an 80G Certificate to a Section 8 Company, a charity trust, or a non-profit organisation that gets the 80G Registration. The 80G certificate was created to inspire more financial support for nonprofits.

The donor receives a tax break equivalent to half of his donation since charitable contributions are deductible from the giver's gross income for tax purposes.

Benefits of 80G Registration :

1. 80G Registration is a tool for nonprofits to utilise to boost their financial support from contributors or donors.

2. Donors can lower their taxable income by the amount of their contributions to the NGO, provided the NGO has obtained 80G Registration.

3. NGO's with an 80G Certificate attract more donors and donations since they may provide them tax deductions in the form of legitimate donation receipts (printed with an 80G registration or 80G Certificate details).

Eligibility for 12a and 80g Registration :

1. Non-governmental organisations (NGOs) that operate as Public Charitable Trusts or u/s 25 of the Companies Act, 1956 that exist for the benefit of the public are eligible for the tax exemption through 12A and 80G Registration.

2. Tax relief is available for donations made in accordance with Section 80G.

3. Assets of non-profit organisations should only be utilised for philanthropic causes.

4. NGOs should keep accurate records of their expenses and receipts.

Registration procedure for 80G Registration :

1. The first step in becoming registered under Section 80G is to fill out an application and submit it to the Commissioner of Income Tax in the region where your organisation works.

2. Following the submission of your application and supporting documentation, the Income Tax Department will review it.

3. If the officials want further information, they will demand more documents from you. Within the specified time frame, you must provide the necessary documents.

4. After the department verifies the data and documentation, the Commissioner will issue an 80G Certification if everything meets properly as per the legal requirements of 80G Certificate.

Document Requirement for 12A and 80G registration :

1. Form 10A.

2. Documental evidence of the creation of the Trust or NGO i.e.

3. Trust Deed of a Trust

4. Registration Certificate and Memorandum of Association of a society

5. Section 8 companies to submit a certificate of incorporation and copies of MoA and AoA of the company.

6. Three-year bank account statement of the Trust.

7. PAN card of the NGO.

Timeline for 12A and 80G registration :

From the submission of form, it will take approx 15 -30 days for Approval.Initially, Approval for 12A and 80G Registration granted for 3 or 5 years.

Renewal of 80G registration and 12A registration Renewal :

80G Registration and 12A Registration is valid for a period of five years before it expired must be renewed again. After five years, a renewal application must be submitted no later than six months from the registration's expiration date.

How can we help you in 12A and 80G registration ?

1. Our experts will help you understand all about the 12A and 80G Registration and provide you guidance on document preparation and submission.

2. Choose a Package and a team of experts will be dedicated to your application procedure.

3. Experts will file applications on your behalf and after the successful verification from the government, the 12A and 80G Certificate will be delivered to you online.