Explore all the details you need about 12A and 80G Registration, tailored for your needs.
In India, non-profit organisations can benefit significantly from two specific registrations provided by the Income Tax Department: 12A and 80G. The 12A registration grants non-profit organizations an exemption from paying income tax on their earned income, which can greatly aid in maximising the funds available for their charitable activities. Additionally, the 80G registration offers a substantial benefit to the donors of these organisations, allowing them to claim deductions on their taxable income for any donations made.
At Solocorp Verifocus Legal LLP, we understand the importance of obtaining Section 12A and 80G registrations for your non-profit organisation. We offer comprehensive assistance and guidance throughout the registration process to help you get the benefits and privileges provided under these sections of the Income Tax Act.
12A and 80G registrations are critical tax provisions for NGOs in India, enabling charitable institutions to avail themselves of specific tax exemptions and benefits. These exemptions are governed by Sections 12A/12AA and 80G of the Income Tax Act of 1961.
The following types of organisations are eligible to apply for 12A and 80G registration. Additionally, the eligibility criteria for each registration type are specified below.
Organizations established specifically for charitable purposes are eligible to apply for these registrations.
Societies formally registered under the Societies Registration Act or similar state laws can apply for 12A and 80G.
Companies formed under Section 8 of the Companies Act 2013 for promoting charitable activities are eligible.
Groups focusing on religious and charitable activities can benefit from these registrations.
Non-profit schools, colleges, and educational foundations are eligible for 12A and 80G registration.
Non-profit hospitals and medical research organisations can also apply for these registrations.
This section pertains to registering charitable or religious NGOs, enabling them to enjoy tax exemptions on income derived from donations.
NGOs with 80G certification can offer their donors the advantage of tax deductions on their contributions. This makes donating more attractive and can lead to increased support.
Being registered under Section 12A and 80G lends an official stamp of approval from the Income Tax Department, enhancing an NGO's credibility. This trust factor is crucial for donors and partners who seek transparency in operations.
The tax benefits associated with these registrations encourage both individuals and corporate entities to donate more generously. This broadens the potential fundraising base, allowing NGOs to expand their activities and reach.
Many government programs and initiatives require NGOs to have 12A and 80G registrations to qualify for funding. This opens up numerous opportunities for grants that are critical for project financing and operations.
The ability to offer tax benefits to donors not only boosts immediate donations but also helps in building long-term partnerships, ensuring sustainable funding sources. This stability allows NGOs to plan and execute impactful, long-term projects.
With 12A registration, NGOs must maintain meticulous records and use their funds strictly for charitable purposes. This ensures that resources are used effectively and for the intended goals of the organisation.
Organizations granted Sections 12A and 80G registration initially receive provisional registration, which is valid for a period of three years.
To extend this status, renewal applications must be submitted six months before the expiration date or within six months from the start of operations, whichever comes first.
The process for obtaining 12A and 80G registrations for NGOs involves several key steps. Below is the detailed procedure to apply online for these registrations.
Choose the appropriate legal structure for your NGO—trust, society, or Section 8 company—and register with the relevant authority, such as the Registrar of Societies or Companies.
Gather the necessary documents such as your organization's registration certificate, MOA/Bye Laws/Trust Deed, audited financial statements, FCRA Registration, and NGO Darpan ID.
Fill out Form 10A, the official form for 12A & 80G registrations, ensuring that all details about your organization's objectives, activities, and board members are accurately provided.
Submit Form 10A and the required documents either at the Office of the Income Tax Commissioner or through the Income Tax Website. Retain copies of all documents for future reference.
The tax authority will review your application and may conduct an inspection of your NGO’s activities and financial records to ensure compliance with the registration requirements.
Once your application meets the necessary requirements, your NGO will be granted registration under Sections 12A/80G. If discrepancies are found, the application may be rejected, and you will be given an opportunity to address them.
After successful registration, you will receive an official 12A & 80G Registration certificate, confirming your NGO’s eligibility for tax exemptions under these sections.