12A & 80G Registration
12A & 80G Registration are registration for Non-Governmental Organization which are established for good causes, and the government provides tax exemptions to assist them with raising funds. You can register NGO under Sections 80G and 12A in order to avail of those benefits for an NGO. NGOs primarily rely on donations to support their functioning. Recent changes have mandated that all the NGOs who have already registered under these 2 sections re-register under sections 80G and 12A to continue enjoying those tax benefits.
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Registration under 12A: Benefits
The foremost important thing for an NGO is to seek an exemption certificate, which is known as a 12A registration. Without this registration, your receipts would be entitled to normal tax rates and cannot take the benefit of the income tax exemptions. This registration under 12A would also help you in seeking grants from government or organizations abroad, as it serves as a legitimate proof of the existence and purposes of your NGO. It is also important point that regardless of whether the NGO is a trust, society or a not-for-profit company, it will have to take a 12A certification to avail the tax exemption
Registration under 80G: Benefits
80G certification makes your NGO become a promising organization and enhances the value and respect of the organization and confidence of those associated with it. Main purpose of NGO is to do social activities and attract donors and to attract donors, NGO must be certified under 80G. It effectively enables a donor to not just feel good about making a donation for a cause but also reap the tax advantage of donor by getting deduction from gross taxable income.
List of Documents Required
| S No. | Section 8 Co | Trust | Society |
|---|---|---|---|
| 1 | Copy of Registration certificate and copy of MOA & AOA | Copy of Trust Deed | Copy of Registration Certificate and copy of MOA & AOA |
| 2 | Copy of PAN Card | ||
| 3 | Copy of Registered Office Address Proof i.e. Electricity bill/Rent Agreement/NOC | ||
| 4 | Evidence of welfare activities carried out & Progress Report since inception or last 3 years. | ||
| 5 | Bank statement, Balance Sheet and ITR since inception or last 3years. | ||
| 6 | List of directors with their contact details | List of trustees with their contact details | List of members with their contact details |
| 7 | Note on the activities of the Trust or NGO or Societies | ||
| 8 | Power of Attorney | ||
| 9 | Every legal document has to be signed and stamped by the authorized signatory | ||
Process
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1
Dully filed in Application will be filed in Income tax Department.
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2
The Commissioner will verify the Application along with the attached documents to check the authenticity of the information provided.
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3
After 1-2 months of application an NGO will receive the notice for clarification.
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4
Authorised Representative will visit Income Tax Department with all Documents and Clarification.
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5
After verification of all the presented documents you will get the certificate of 12A & 80G.
Deliverable
- Certificate of registration under 12A of income tax act
- Certificate of registration under 80G of income tax act
