Section 80G- 12A Registration
Choose 12A and 80G registration to ensure tax exemption for your NGO and donors.
What Is an 80G Certificate?
80G certificates are issued to non-governmental organisations (NGOs) such as Section 8 companies or trusts. It supports financial assistance to many non-profit organisations. Also, when a person donates to a charity, he/she can get tax exemption by deducting it from his/her total income. Donors are required to submit a donation receipt to avail the exemption. The receipt should include the details, date of donation and PAN of the organisation.
Step-by-Step Procedure for 80G Registration
Eligibility Criteria:
- Ensure your organization is registered as a Trust, Society, or Section 8 Company.
- The organization should have a valid registration under Section 12A or 12AA of the Income Tax Act.
Gather Required Documents: Prepare the following documents for the application:
- Registration Certificate: Copy of the certificate of incorporation or registration.
- PAN of the Organization: Permanent Account Number of the organization.
- Section 12A/12AA Registration: Proof of registration under Section 12A or 12AA.
- Trust Deed/Society Registration Certificate: Depending on your organization type.
- Financial Statements: Recent audited financial statements (if applicable).
- Details of Activities: A brief description of the charitable activities undertaken.
- Application in the prescribed format: This typically includes a request letter addressed to the Commissioner of Income Tax.
Application Form:
- There is no specific form for 80G registration; however, you should include a cover letter along with the required documents stating your intent for registration.
Submission of Application:
- Submit the application along with the required documents to the concerned Commissioner of Income Tax (CIT) where the organization is registered.
Verification by Income Tax Department:
- The Income Tax Department will review the submitted documents and may conduct an inquiry or request additional information if necessary.
Assessment and Inquiry:
- The assessing officer may require clarifications regarding the activities or financials. Be prepared to respond to any queries.
Issuance of Registration:
- Upon satisfactory verification, the Income Tax Department will issue a certificate of registration under Section 80G, which will specify the period of validity.
Documents Required for 80G Registration
Registration Certificate:
- Copy of the Certificate of Incorporation or Registration of the organization (Trust, Society, or Section 8 Company).
PAN of the Organization:
- Permanent Account Number (PAN) card of the organization.
Section 12A/12AA Registration:
- Proof of registration under Section 12A or 12AA of the Income Tax Act.
Trust Deed/Society Registration Certificate:
- For trusts, a copy of the Trust Deed.
- For societies, a copy of the Society Registration Certificate.
Financial Statements:
- Recent audited financial statements (if applicable), including balance sheets and income statements for the past few years.
Details of Activities:
- A brief description of the charitable activities undertaken by the organization.
Benefits of Section 80G Registration
Tax Deductions for Donors:
- Donors can claim tax deductions on their contributions to the organization, making it more attractive for individuals and companies to donate.
Increased Donations:
- The availability of tax benefits encourages more generous donations, helping the organization raise funds more effectively.
Credibility and Trust:
- 80G registration enhances the organization’s credibility, as it shows compliance with regulatory standards, which can attract more donors.
Corporate Contributions:
- Many companies prefer donating to organizations with 80G registration to avail of tax benefits, thus broadening funding sources.
Legal Recognition:
- Registration under Section 80G provides legal recognition, facilitating easier operations and engagement in charitable activities.
About 12A Registration
12A registration is a process through which non-profit organisations in India, including trusts, companies and Section 8 companies, can obtain tax exemptions. Once registered under Section 12A of the Income Tax Act, 1961, the income of these organisations is exempt from tax if used for charitable or religious purposes.
Documents Required for 12A Registration:
Certificate of Incorporation:
- A copy of the Certificate of Incorporation if the organization is a Section 8 Company.
Trust Deed/Society Registration Certificate:
- For trusts, a copy of the Trust Deed.
- For societies, a copy of the Society Registration Certificate.
PAN of the Organization:
- Permanent Account Number (PAN) card of the organization.
Memorandum of Association (MOA) and Articles of Association (AOA):
- For Section 8 Companies, copies of the MOA and AOA.
List of Managing Committee Members or Trustees:
- A document listing the names and details of the managing committee members or trustees.
Financial Statements:
- Audited financial statements of the organization for the last three years, if available.
Proof of Address:
- Address proof of the organization (e.g., utility bills, lease agreements).
Details of Activities:
- A brief description of the charitable activities and objectives of the organization.
Step-by-Step Procedure for 12A Registration
1.Formation of the Organization:
- Ensure that your organization is legally formed, either as a Trust, Society, or Section 8 Company under the Companies Act.
Gather Required Documents: Prepare the necessary documents, including:
- Copy of the Certificate of Incorporation (for companies) or Trust Deed/Society Registration Certificate.
- PAN of the Organization.
- Memorandum of Association (MOA) and Articles of Association (AOA) (for Section 8 Companies).
- List of Managing Committee Members or Trustees.
- Financial Statements (if applicable).
- Proof of Address of the organization.
- Details of Activities: A brief description of the charitable activities planned.
Application Form:
- Fill out Form 10A, which is the application for registration under Section 12A of the Income Tax Act.
Submission of Application:
- Submit the completed Form 10A along with the required documents to the respective Income Tax Officer (ITO) where your organization is registered.
Online Submission (if applicable):
- Some jurisdictions may allow online submission through the Income Tax Department’s e-filing portal. Check if your region offers this option.
Verification by Income Tax Department:
- After submission, the Income Tax Department will review the application and the documents provided.
Assessment and Inquiry:
- The assessing officer may conduct an inquiry or request additional information. Be prepared to respond to any queries promptly.
Issuance of Registration:
- Upon satisfactory verification, the Income Tax Department will issue a registration certificate under Section 12A.
Maintain Records:
- Keep the registration certificate and all related documents safe for future reference and compliance.
Benefits of Section 12A Registration
Tax Exemptions:
- Organizations registered under Section 12A are exempt from income tax on their surplus income, provided it is used for charitable purposes.
Eligibility for 80G Registration:
- Section 12A registration is often a prerequisite for obtaining 80G registration, allowing organizations to offer tax benefits to donors.
Long-Term Sustainability:
- Exemption from income tax allows organizations to retain more funds for charitable activities, promoting sustainability.
Access to Government Grants:
- Many government schemes and grants are available only to organizations with 12A registration, opening up additional funding opportunities.
Credibility and Trust:
- Registration under Section 12A enhances the organization’s reputation, fostering trust among donors, stakeholders, and the public.
FAQ's on Section 80G- 12A Registration
FAQs on Section 80G Registration
Section 80G registration allows donors to claim tax deductions on contributions made to registered charitable organizations, encouraging donations.
Charitable organizations registered as trusts, societies, or Section 8 companies that are also registered under Section 12A or 12AA are eligible.
Required documents include the registration certificate, PAN, Section 12A registration proof, financial statements, and details of activities, among others.
The processing time can vary, typically ranging from a few weeks to a few months, depending on the Income Tax Department’s review process.
80G registration is usually valid for five years, after which it must be renewed.
Yes, newly formed organizations can apply, but they must provide a declaration of intended activities if financial statements are not available.
FAQs on Section 12A Registration
Section 12A registration provides tax exemptions for charitable organizations, allowing them to retain more income for their activities.
Organizations must be registered as trusts, societies, or Section 8 companies and operate for charitable purposes.
Required documents include the registration certificate, PAN, trust deed or society registration certificate, financial statements, and details of activities.
Yes, newly formed organizations can apply for 12A registration, provided they submit the necessary documents and details of intended activities.
The process can take several weeks to months, depending on the Income Tax Department’s assessment.
Non-compliance can lead to denial of tax exemptions and potential penalties.