Nareshv and Associates

80G and 12A Registration

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Steps

1. Fill out the Form

Filling out the form is quick and easy and will provide you with numerous benefits in the long run. By this, you will be able to get consultation from our nareshv & associates CA/CS and will be able to get Guidance. So, why wait? Take the first step towards a bright future for your business and fill out the form today.

2. List of Documents Required

Required Documents for 80G and 12A Registration

Below mentioned are the documents required for 80G registration in India:

MoA and Incorporation certificate of the entity such as in the case of Section 8 companies and Societies and a Trust Deed is required if it is a Trust
Driving LicenseNo objection certificate or NOC from the owner of the premises where the registered office of the organisation is located
Form 10G
Certified copy of the PAN number of the NGO
Copy of Utility Bills and it can be water bill, Electricity bill or House Tax Receipt
A list of the contributors or donors associated with their PAN and address
The important documents related to Annual Returns, Income Tax Returns and the record book of Accounts of the last three years
The list of the welfare or charity or social activities being accomplished and the progress report of the past three years
Detailed information about the Board of Trustees
Original MoA, RC or Trust Deed.

The following are the documents that are required for the 12A registration in India process:

Documental evidence of the creation of Incorporation Certificate or COI of the Trust or NGO such as Trust Deed if it is a Trust; Registration Certificate and Memorandum of Association if it is a society.
Section 8 companies are required to present their certificate of incorporation and copies of MoA and AoA of the entity
Form 10A.
bank account statement of the Trust for the past three years
PAN number of the entity or organization.

3. Registration Procedure

Following Is The Step By Step Process Of 80G and 12A Registration:

Register Under Section 80G

Any NGO that wants to register under Section 80G has to be duly registered and should be working specifically towards charitable objectives.

Step-1: An application has to be filed in Form 10A with the Commissioner of Income Tax – Exemption.

Step-2: Important documents are to be submitted

Step-3: Upon submission, the documents would be reviewed by the Commissioner. If required, he may ask for additional documents or information and the same have to be provided within the timeframe to avoid rejection

Register Under Section 12A

All charitable trusts, societies, and Section 8 Companies, except private or family trusts, are eligible to register under Section 12A.

Step-1: An application has to be filed in Form 10A with the Commissioner of Income Tax - Exemption

Step-2: The required documents need to be submitted

Step-3: Once the documents are submitted, the application will be reviewed by the Commissioner, who might ask for additional information

Step-4:If everything is found to be satisfactory, the registration will be completed soon after, else it will be

4. Advantages

80G certification enhances the prospects and credibility of any organisation

Donors reap the benefits of less taxable incomes

Possibility of attracting more donors

Provision to gain grants from governments and international organisations.

Registration certificate serves as valid proof of the purpose of the NGO and its operations.

All NGOs, be they trusts, companies, or societies, are eligible to avail exclusion from taxes

NGO owners can seek foreign contributions without many hassles

5. Importance of 80G and 12A Registration

80G and 12A registrations are crucial for charitable and religious organizations in India to avail tax exemptions and attract donors for their social and religious activities. 12A certification enables organizations to claim tax exemptions on their income, while 80G certification provides tax benefits to donors who contribute to the organization. These certifications also enhance the credibility and transparency of the organization, making it easier to receive grants and donations.

6. . Are 80G and 12A registrations permanent ?

No, 80G and 12A registrations are not permanent. The certifications are valid as long as the organization continues to fulfill the conditions of registration. They may be cancelled if the organization fails to comply with the rules and regulations of the Income Tax Department.

What is 80G and 12A Registration?

An 80G Certificate in India is a legal document granted by the Income Tax Department to an NGO or non-governmental organization such as a Section 8 Company or a charitable trust. The 80G Certificate is issued to encourage and promote the donors to contribute funds into such NGOs or non- profit organizations. Moreover, when the donor makes donations to such an organization, they will get a tax exemption of 50% and also they become qualified to deduct such sum from their Gross Total Income. Furthermore, in order to obtain the tax exemption, the donor has to file the stamped receipt or document as evidence of the donation made. Such a receipt or document should have the name of the donor, date of contribution or donation made, and PAN number of the organization.
12A registration is a one-time registration which is granted by the Income Tax Department to trusts and other not for profit organisations. The purpose of the registration is to be exempted from the payment of income tax. 12A registration is generally applied for immediately after incorporation. Section 8 Companies, Trusts and NGOs which have obtained 12A registration enjoy exemption from paying income tax on their surplus income. The 12A registration facility is available for all non-profit entities. Hence, it is necessary for all Trusts, NGOs and other Not-for-Profit organisations to be aware of Section 12A of the Income Tax Act. The purpose of the present article is to discuss the procedure for obtaining 12A registration.

Frequently Asked Questions

1. What is an 80G Certificate?

An 80G Certificate is a legal document granted by the Income Tax Department to an NGO or non-governmental organization such as a Section 8 Company or a charitable trust. The 80G Certificate is issued to encourage and promote the donors to contribute funds into such NGOs or non- profit organizations.

2. What is the 80G qualifying limit?

Some donations get fit with all requirements for either 100% or half assessment conclusion though some others meet the bill for the same finding yet up to a most extreme limitation of 10% of Adjusted Gross Total Income of the person.

3. What is a 12A Certificate?

Section 12 A is a one-time tax exemption granted to trusts, NGO organizations and Section 8 Companies under the Income Tax Act, 1961. Organizations owning a registration certificate under section 12A are avail for tax exemption, that is they are free from paying taxes for their surplus financial gain.

4. Why is 12A registration required? Section 12 A is a one-time tax exemption granted to trusts, NGO organizations and Section 8 Companies under the Income Tax Act, 1961. The purpose of this registration is to be relieved from the income tax payment. 12A registration process is applied immediately after the incorporation of the entity.

Section 12 A is a one-time tax exemption granted to trusts, NGO organizations and Section 8 Companies under the Income Tax Act, 1961. The purpose of this registration is to be relieved from the income tax payment. 12A registration process is applied immediately after the incorporation of the entity.

5. Can we apply for 12A and 80G separately?

Yes, you can apply for them separately in which case you have to apply for 12A first. However, doing them together is easier.