Login

80G and 12A Registration

NGOs must apply for 12A & 80G Registration online in India to provide income tax exemption to the bestowers! It also helps NGOs in helping government sponsorship and funds. The expert team at Ritedger are just a phone call behind to help and guide you!

India's Top Business Consulting Company

0 +

Active Clients

0 +

CA / CS

0 *

Rating

0 +

Income Tax returns

Overview
Required Documents
Procedure
FAQ

The entity must not have any financial gain generated from a business

The registrations of 80G and 12A apply only for entities like NGOs and Charitable Organizations if they satisfy the following conditions

  • The entity should either be a registered society or a charitable trust
  • Additionally, such entities should not be using their properties or income for any other intention apart from using charity-related activities
  • Moreover, the entity must keep a regular book or report of accounts in favour of their financial dealings or receipts and expenses.
  • The trustees of any other body that manages the organization must not be involved in gaining any undue benefits from the contributions or funds
  • The entity should not be operating for the benefit of any particular community or caste or religion
  • Also, for any business-related income, such entities should maintain a separate book or report of accounts and financial dealings. However, the contributions and donations
  • received by the NGO should not be used for any other business other than charity purpose.

It is a must that an NGO should apply for 12A And 80G Registration soon after its registration

What is an 80G Certificate?
An 80G Certificate is a legal document granted by the Income Tax Department to an NGO or non-governmental organization such as a Section 8 Company or a charitable trust. The 80G Certificate is issued to encourage and promote the donors to contribute funds into such NGOs or non- profit organizations. Moreover, when the donor makes donations to such an organization, they will get a tax exemption of 50% and also they become qualified to deduct such sum from their Gross Total Income. Furthermore, in order to obtain the tax exemption, the donor has to file the stamped receipt or document as evidence of the donation made. Such a receipt or document should have the name of the donor, date of contribution or donation made, and PAN number of the organization.

The Documents needed for the 80G Registration

Below mentioned are the documents required for 80G registration:

  • MoA and Incorporation certificate of the entity such as in the case of Section 8 companies and Societies and a Trust Deed is required if it is a Trust
  • No objection certificate or NOC from the owner of the premises where the registered office of the organisation is located
  • Form 10G
  • Certified copy of the PAN number of the NGO
  • Copy of Utility Bills and it can be water bill, Electricity bill or House Tax Receipt
  • A list of the contributors or donors associated with their PAN and address
  • The important documents related to Annual Returns, Income Tax Returns and the record book of Accounts of the last three years
  • The list of the welfare or charity or social activities being accomplished and the progress report of the past three years
  • Detailed information about the Board of Trustees
  • Original MoA, RC or Trust Deed.
Registration procedure involved in the 80G Registration in India

80G registration process consists of below-mentioned steps:

  • File for an 80G certificate to the authorized Commissioner of Income Tax (Exemption) within the area limit of the entity with all required documents and reports.
  • After receiving the application form, the Income Tax department will conduct an on- premise inspection, and the required documents which are submitted for 80G registration are also verified
  • However, the concerned Income Tax Officials might expect for additional documents or reports or evidence if they feel anything is missing or if they seem unfit.
  • Upon verification satisfactory of the submitted documents and on the office of the NGO, 80G certificate is issued to the organization by the Commissioner.
  • An 80G Certificate is valid for the lifetime of the organization.
About 12A Registration

Section 12 A is a one-time tax exemption granted to trusts, NGO organizations and Section 8 Companies under the Income Tax Act, 1961. Organizations owning a registration certificate under section 12A are avail for tax exemption, that is they are free from paying taxes for their surplus financial gain.

NGOs are organizations or entities that are involved in non-profit activities and charitable operations. However, they also gain income and if not registered under section 12A, Income Tax Act, then the organization is required to pay income tax as per normal income tax rates.

The Procedure for 12A Registration in India

Below mentioned are steps involved in the 12A registration process:

  • First, the applicant or the entity has to file an application in the Form 10A, following the Rule 17A of the Income Tax Act, 1961
  • The application needs to be entered all the needed information as specified in the guidelines of the Jurisdictional Commissioner of Income Tax department (Exemptions)
  • Once the form and the documents are received, the authorized Commissioner verifies the documents and the activities of the organization. Also, he can expect for additional reports or evidence or documents or information if he considers it is necessary
  • After the satisfactory report, the authorized Commissioner grants an order in writing for the sanction of 12A Registration. If the Commissioner is not satisfied with the documents and application form that have been submitted he will reject the application, after which the entity or the applicant is furnished a fair chance to be heard.

12A Registration certificate can be cancelled at any situation on the subject to the proof that the organization or entity is involved in the following activities:

  • If it is against the object of the organization
  • If the entity is not genuine
  • If the organization is benefitting a specific caste or religion
  • If the funds and contributions are being invested in prohibited purposes
  • If the financial gain or income of the institution is used for the benefit of a specified group of persons or specific individual
  • Note: The12A Registration is valid for a lifetime of such institution

Frequently Asked Questions

An 80G Certificate is a legal document granted by the Income Tax Department to an NGO or non-governmental organization such as a Section 8 Company or a charitable trust. The 80G Certificate is issued to encourage and promote the donors to contribute funds into such NGOs or non- profit organizations.
Some donations get fit with all requirements for either 100% or half assessment conclusion though some others meet the bill for the same finding yet up to a most extreme limitation of 10% of Adjusted Gross Total Income of the person.
Section 12 A is a one-time tax exemption granted to trusts, NGO organizations and Section 8 Companies under the Income Tax Act, 1961. Organizations owning a registration certificate under section 12A are avail for tax exemption, that is they are free from paying taxes for their surplus financial gain.
Section 12 A is a one-time tax exemption granted to trusts, NGO organizations and Section 8 Companies under the Income Tax Act, 1961. The purpose of this registration is to be relieved from the income tax payment. 12A registration process is applied immediately after the incorporation of the entity.

  • An 80G Certificate is a legal document granted by the Income Tax Department to an 

     NGO or non-governmental organization such as a Section 8 Company or a charitable trust. 
  • The 80G Certificate is issued to encourage and promote the donors to contribute funds into such NGOs or non- profit organizations. Moreover, when the donor makes donations to such an organization, they will get a tax exemption of 50%  and also they become qualified to deduct such sum from their Gross Total Income. 
  • Furthermore, in order to obtain the tax exemption, the donor has to file the stamped receipt or document as evidence of the donation made. Such a receipt or document should have the name of the donor, date of contribution or donation made, and PAN number of the organization.
  • Documental evidence of the creation of Incorporation Certificate or COI of the Trust or NGO such as Trust Deed if it is a Trust; Registration Certificate and Memorandum of Association if it is a society.
  • Section 8 companies are required to present their certificate of incorporation and copies of MoA and AoA of the entity
  • Form 10A.
  • bank account statement of the Trust for the past three years 
  • PAN number of the entity or organization.
Get free Consultation for your company
Contact us

We provide all kind of Business solutions on time.

Startup
Taxation
Compliance
Facebook Twitter Instagram
Chat with us?