“12A and 80G are provisions under the Income Tax Act, 1961 in India that provide tax benefits to non-profit organizations.”
12A & 80G registration
Section 12A Registration
Section 12A registration applies to organisations working not for profit like NGOs, charitable trusts, religious organisations, Section 8 companies. Once duly registered under 12A, these organisations are eligible to avail of tax exemptions on their surplus income. It is a one-time registration and the certificate of an exemption obtained hereunder has lifetime validity.
Documents Required for 12A Registration:
- Documents evidencing the creation of the trust or organisation (trust deed or any other instrument, certificate of incorporation, copies of MOA and AOA for Section 8 companies, MOA and registration certificate for societies).
- Copy of PAN of the organisation.
- Form 10A Where the organisation is a trust, the annual accounts for the last three years.
Section 80G Registration
Section 80G registration under the Income Tax Act, 1961 is provided to organisations working not for profit like NGOs, charitable trusts, religious organisations, Section 8 companies. The main aim of this certificate is to encourage donors to provide donations. The donors making such donations are eligible to avail tax deductions.Documents required for registration under Section 80G:
- Documents evidencing the creation of the trust or organisation (trust deed or any other instrument, certificate of incorporation, copies of MOA and AOA for Section 8 companies, MOA and registration certificate for societies).
- Copy of PAN of the organisation.
- Form 10G.
- No Objection Certificate (NOC) from the owner of the property where the registered office is situated.
- Copy of the utility bills of the organisation documents related to the book of accounts and income tax returns.
- Details of welfare activities carried out by the organisation within the last 3 years. If the organisation is a trust, detailed list of the board of trustees
Benefits of 12A and 80G Registration
12A and 80G are provisions under the Income Tax Act, 1961 in India that provide tax benefits to non-profit organizations. Here are the benefits of 12A and 80G registration:
- Tax exemption: Non-profit organizations registered under 12A and 80G are eligible for tax exemption on their income. Donors who contribute to such organizations can also claim a tax deduction on their donations.
- Increased credibility: 12A and 80G registration adds credibility and legitimacy to a non-profit organization. It assures donors and supporters that their donations are being used for charitable purposes and are eligible for tax benefits.
- Access to more funds: By obtaining 12A and 80G registration, non-profit organizations become eligible for various government and private grants and funding opportunities. This increases their access to funds and enables them to expand their operations.
- Reduced administrative burden: Non-profit organizations registered under 12A and 80G are exempted from paying income tax and filing annual tax returns. This reduces their administrative burden and enables them to focus on their core activities.
- Better accountability and transparency: 12A and 80G registration require non-profit organizations to maintain proper records and accounts of their income and expenses. This ensures better accountability and transparency in their operations.
- Increased public trust: By obtaining 12A and 80G registration, non-profit organizations demonstrate their commitment to transparency and accountability. This helps in building public trust and confidence in the organization.
Clients Testimonials
Explore 12A & 80G registration
How do I register for a 12A certificate?
To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application shall be addressed to the Commissioner of Income Tax and the necessary documents. The application should compulsorily be made in the online mode.
How can I get registration under 80G?
Fill the form, you will get a call back from our experts.
What are 12A and 80G registration?
Both 80G Registration and 12A Registration applies only to NGOs and charitable organizations. 80G Registration comes under Section 80G of the Income Tax Act and provides benefits to the donor of an NGO. In contrast, Section 12A Registration will assist an NGO in getting an organization’s income exempted from Tax.
Who can apply for an 80G certificate?
A non-profit organization or non-governmental organization (NGO), a charitable trust or a Section 8 Company can apply for 80G registration and obtain certification under section 12A. Both certificates can be used together, or they can also be done separately.
Is DARPA ID mandatory for 12A registration?
If you want to raise funding from Government departments, it is mandatory to register with the NGO Darpan portal and, after filing the form, get their Darpan ID. It is optional to mention Darpan ID while filing FCRA Registration Form in the initial phase.
What does the section 80G Certificate exactly mean?
The term “Section 80G Certificate” denotes the certificate issued by the Income Tax Department to the NGO, Section 8 Company, or Trust.