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Registration under Section 12A and 80G 2019-01-09T05:51:46+00:00

Registration under Section 12A and 80G

  • 12A
  • 80G
  • Grants
  • Donation

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Registration under Section 12A and 80G

An NGO can take advantage of the exemption from income tax by getting itself registered and complying with several other formalities, but this kind of registration does not give any benefit to the persons giving donations. The Income Tax Act 1961 comprises of certain provisions that offer tax benefits to the “donor”. All NGO’s should make use of the benefit of these provisions for attracting the potential donors. Section 80G is one of such sections. If an NGO gets its registered under section 80G, then the organisation or the person who is making a donation to the NGO will get a discount of 50% from his/its taxable income. However, to get registered under section 80G of Income Tax Act, 1961, registration under section 12A is required.

Registration under Section 12A

To enjoy the income tax exemption towards the income of non-profit organisations like Trust, Society, Foundation or non-profit companies, the company or the organization need to apply for 12A certification (Exemption Certificate). After obtaining the 12A certification the organization gets the distinct legal entity. After getting the 12A certification, one can apply for an 80G certificate.

Benefits

  • Exemption from income tax

  • advantages of taking grants from Government, from Abroad and other agencies.

Registration under Section 80G

If an organization has received certification under section 80G of Income Tax Act then patrons of that NGO can claim freedom from Income Tax.

Benefits

  • The donor can avail discount from its taxable income.

  • Drawing the donor to make a donation.

When to Apply

Exemption certificate under Section 12A and 80G can be applied promptly after NGO’s registration. The application for 12A and 80G certificate can either be filed together or separately also

Where to apply

Application for registration under section 12A and 80G are to be applied to the Commissioner of Income Tax (Exemption) having authority over the institution.

Time involved

The registration process can take up to 3 to 4 months. The Registration once completed is valid for lifetime.

Documentation Required

1. For 12A registration

  • List of Name, addresses and Pan details of the trustees/managers.
  • Certified real copy of the instrument (registration certificate) under which the institution or trust was created/built.

  • True Certified copy of the document (Trust deed/MOA and AOA) which is proof of such institution/trust creation.

  • Two copies of the accounts of the institution or trust for the latest one/two/three years.

  • Copy of PAN card of NGO.

2. For 80G registration

  • Copy of PAN card of NGO.
  • Copy of House tax Receipt /Electricity Bill / Water Bill.

  • Registration Certificate and MOA /Trust Deed/Bye-laws.

  • Non Objection Certificate also known as NOC from Landlord (where the registered office is located).

  • Proof of welfare activities carried out & Progress Report since the beginning or last 3 years.

  • Copies of audited accounts since origin or last 3 years.

  • List of donors and their address and PAN ID.

  • List of board of trustees members and the government body with their contact details.

  • Copy of registration which is granted under section 12A or copy of notification declared under section 10(23) or section 10(23C).

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