12A and 80G Registration for NGO: Process, Benefits, Document

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The two registrations, 12A and 80G, are given by the Income Tax Department to NGOs so they can benefit from tax exemption and allow contributors to deduct their donations. An NGO with 12A and 80G registration is more likely to be approved for generous financing and numerous tax breaks. Know all about 12A and 80G Registration for NGO through this article.

Overview of 12A and 80G Registrations in India

In the form of a charitable trust, society, or section 8 company, an NGO (Non-Governmental Organization) is created solely to serve non-profit humanitarian purposes. Once this type of entity is formally registered, it is approved for a number of tax exemptions, benefits, reliefs, and provisions for tax deductions for donors. For this, 12A and 80G registration are required; otherwise, Any revenue an NGO receives, such as through services, productions, or donations, will be treated as regular taxable income without taking the intended use of the income into account. NGOs having 12A and 80G certificates are valued more highly commercially than their rivals. Some of other essential things to know about 12A and 80G Registration in India:

  • Government funding is only permitted to be provided to these NGOs.
  • A 12A registered NGO is allowed to use tax-exempt funds throughout its existence.
  • NGOs with 80G certificates attract more contributors since they are able to provide legitimate donation receipts (printed with 80G registration ID) that can be used for tax exemptions.
  • Obtaining an 80G registration requires 12A registration.
  • You can take the 12A and 80G registrations jointly or separately.
  • Family Trusts and Private Trusts are NOT eligible for 12A Certificates.

Advantages of registration under 12A and 80G

  • Through tax exemptions over NGO income, more money is made available for philanthropic work.
  • Grants and funds from reputable organizations, the government, and foreign sources are accepted.
  • Only NGOs that have been registered under Sections 12A and 80G and that qualify for an exemption under the Foreign Regulation Act of 2010 (FCRA) may accept international money.
  • expands the reach of achieving NGO goals by luring additional funders.
  • Once the NGO is registered and receives 12A and 80G registration, it will have more operational exposure and status worth.
  • 12A and 80G are both one-time registrations that are good for the whole existence of the NGO.

Stepwise Process to get 12A and 80G Registration

  • Determine your eligibility: To be eligible for 12A and 80G registration, your organization must be a charitable or non-profit organization that meets the criteria specified in the Income Tax Act.
  • Collect required documents: You will need to gather the following documents to apply for 12A and 80G
    • Proof of identity and address of the organization’s trustees or directors
    • Proof of registration of the organization (such as a registration certificate issued by the government)
    • Details of the organization’s activities and objects (such as a memorandum of association or bye-laws)
    • Audited financial statements for the past 3 years
    • Details of the donations received by the organization
  • Submit the application: You can apply for 12A and 80G by submitting a physical application at the nearest Income Tax Office or by filing an online application through the Income Tax Department’s e-filing portal.
  • Wait for approval: Once you have submitted your application, the Income Tax Department will review it and issue a registration certificate if your application is approved. This process can take several weeks or months, depending on the workload of the Income Tax Office.

Renewal of 12A and 80G Registration

12A and 80G registration is valid for a period of 5 years and must be renewed after that. You will need to submit a renewal application and provide updated financial statements before the expiration of your current registration.

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