Registration under Section 12A and 80G 2018-02-07T11:07:14+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 avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The Income Tax Act 1961 has certain provisions which offer tax benefits to the “donor”. All NGO’s should avail the advantage of these provisions to attract potential donors. Section 80G is one of such sections. If an NGO gets itself registered under section 80G, then the person or the organisation making a donation to the NGO will get a deduction 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, they need to apply for 12A certification (Exemption Certificate). After getting the 12A certification the organization gets the perfect legal entity. After receiving the 12A certification, it can apply for 80G certificate.

Benefits

  • Income will be exempted from taxation.
  • Benefits of taking grants from Government, Abroad and other agencies.

Registration under Section 80G

If an organization has obtained certification under section 80G of Income Tax Act then donors of that NGO can claim exemption from Income Tax.

Benefits

  • The donor can avail deduction from its taxable income.
  • Attracts the donor to make a donation.

When to Apply

Exemption certificate under Section 12A and 80G can be applied immediately after the registration of NGO. The application for 12A and 80G certificate can be filed together or can file separately as well.

Where to apply

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

Time involved

The registration process may take time up to 3 to 4 months. The Registration done once is valid for lifetime.

Documentation Required

1. For 12A registration

  • List of Name, addresses and Pan details of the trustees/managers.
  • Certified true copy of the instrument (registration certificate) under which the trust/institution was created/established.
  • Certified true copy of the document (Trust deed/MOA and AOA) which is evidence of such institution/trust creation.
  • Two copies of the accounts of the trust/institution for the latest one/two/three years.
  • Copy of PAN card of NGO.

2. For 80G registration

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

  • NOC from Landlord (where registered office is situated).
  • Copy of PAN card of NGO.
  • Copy of Electricity Bill / House tax Receipt /Water Bill.
  • Evidence of welfare activities carried out & Progress Report since inception or last 3 years.
  • Copies of audited accounts since inception or last 3 years.
  • List of donors along with their address and PAN.
  • List of governing body board of trustees’ members with their contact details.
  • Copy of registration granted under section 12A or copy of notification issued under section 10(23) or section 10(23C).

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