An NGO (Non-Government Organization) can apply for both 12A and 80G Registration. NGO can apply for 12A certification for tax exemption and 80G certification for donor's tax exemption. Also, the validity of 12A and 80G Certificate is for a lifetime.
What is an 80G Registration? 80G Certificate is issued by the ITD (Income Tax Department) to an NGO. In this certification, the donor can avail of financial benefits in his taxable amount of their income. The donor gets 50% of the tax exemption whenever they make donations to any charitable trust. The donor needs to attach the stamped receipt of the donation made in order to avail of the exemption. What is a 12A Registration? It's a one-time tax exemption provided to the NGOs, Trusts, and Section 8 Companies. If any Trusts or NGOs are not registered under Section 12A, Income Tax Act, they have to pay tax as per normal rates. When can you apply for 80G and 12A exemption certificate? You can immediately apply for an exemption certificate under section 12A and 80G after an NGO's Registration. You can also apply the 12A and 80G Certificate together or separately. The application under Section 12A needs to be applied under Section 80G. Eligibility Criteria for 80G and 12A Registration Check the following eligibility criteria before the Registration for 80G and 12A certification: 1- The NGOs should be registered under the Act. 2- Not applicable to the Family Trust or Private. 3- They should be a charitable trust or a registered society. 4- They must not have any income generated from a business. 5- Maintain a regular book of accounts in favour of their expenses and receipts. 6- Anyone working for the benefits of any particular religion or caste should be not eligible for the Registration. 7- In the case of business-related, income they should maintain a separate book of accounts. All the donations received by the NGOs must not be used for such businesses. What are the benefits of 80G Registration? Check all benefits of the 80G Registration form below: Donor Tax Exemption: In this Registration, the donor can avail of the tax deduction from its income by giving a donation receipt. Attract Donors: It attracts the donor to donate any charitable trusts. What are the benefits of 12A Registration? Check all benefits of the 12A Registration form below: 1- You can avail the tax exemption from your income. 2- You can also receive grants from the Government and various private sectors or agencies. 3- Benefits of FCRA (Foreign Contribution Regulation Act) Registration. Documents required for the 80G Registration The documents required for the 80G Registration is mentioned below: 1- NOC from the owner of the registered office. 2- MoA, Trust Deed, and the Registration certificate. 3- Copy of the PAN card of the NGO. 4- Form 10G 5- List of the donors along with their PAN and address proofs. 6- Copy of latest water bill, electricity bill, or House Tax receipt. 7- Balance sheet or Income Tax Returns, statement of accounts of the last 3 years. 8- A detailed list of the Trustees. 9- Progress report and the list of welfare activities of the last three years. Documents required for 12A Registration 1- The documents required for the 12A Registration is mentioned below: 2- Trust Deed of Trust Registration Certificate, and Memorandum of Association (MOA) of a society. 3- For section 8 companies, they need to submit the copies of AoA and MoA of the companies and Certificates of incorporation. 4- Bank statement of the Trust for the last three years. 5- Form 10A. 6- PAN of the organization. What is the procedure for 80G Registration? 1- Follow these steps to get 80G Registration done. Before the Registration, first, make sure that you have all the required documents for 80G Registration, as mentioned above. 2- Apply for 80G Certificate to the Commissioner of Income Tax along with the required documents. 3- Then, inspection is done by the Income Tax Department, and the required documents are submitted for 80G Registration. 4- If Income Tax Officials find anything missing, they might ask for some extra or additional documents. 5- After the successful verification of the NGO's office and all the documents, the Commissioner of Income Tax will issue the80G Certificate. What is the procedure for 12A Registration? 1- Follow these steps to get 12A Registration done. Before the Registration, first make sure that you have all the required 12A Registration documents, as mentioned above. 2- First, apply the Form 10A, as per Rule 17A of the Income Tax Act, 1961. 3- You need to fill the application under the guidelines of the Jurisdictional Commissioner of Income Tax. 4- Then, inspection is done by the Income Tax Department, and the required documents are submitted for 12A Registration after the form is received. 5- If Income Tax Officials find anything missing, they might ask for some extra or additional documents. 6- After the whole process, the Commissioner passes an order for the grant of 12 A certificate. The Commissioner will reject the application form if he/she discover anything wrong. Conclusion 12A and 80G Registration is very helpful in different ways, such as it attracts more donors; it also helps raise the fund from the Government, builds Trust, and so on. The donors can avail of the tax deduction benefits from their income by giving a receipt of donation. All these changes help to avoid any tax evasion and malpractices related to it.
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7/6/2023 11:35:49 am
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