80G & 12AA Registration

NGOs are formed for charitable purposes, and the government grants tax breaks to help them raise funding. Section 80G of the Income Tax Act provides benefits to an NGO's donors, whilst Section 12A Registration would help an NGO get its income tax-free. Both the 80G and 12A registrations are only for non-profits and charity organisations. Furthermore, due to recent revisions, all NGOs that were previously registered under these two sections must now re-register under sections 80G and 12A in order to continue receiving tax benefits. In addition, if an NGO wants to get CSR funds, they must fill out Form CSR-1.

Benefits

Proof of Existence

This certificate would be a genuine and legible proof of existence for the government, proving that this type of entity is registered. For the entity to be eligible for a government grant or loan, legal proof would be required.

Tax Exemption

The NGO or Society would be exempt from paying tax if they claimed this exemption. To claim such an exemption, the NGO would have to provide the 12A certificate.

Government Schemes and Grants

An entity such as an NGO or Society can take use of all government initiatives and grants by obtaining an exemption certificate under 12A. If the NGO or society does not accept this kind of registration, this option will be unavailable.

More Donors

Having this certificate not only improves the NGO's or society's reputation, but it also increases the number of donors. Under this arrangement, more donations would be eligible for tax breaks.

Documents Required

Documents Required For 80G Registration

Deed for Verification
Detailed list of the board of trustees.
List of welfare activities being carried out
Book of Accounts & Income Tax Return
Copy of Utility Bills
PAN card copy of the NGO.
No objection certificate from the owner of the registered office property
Registration certificate and MoA in case of Section 8 companies and Societies; Trust Deed in case of a Trust
Form 10G.

Documents Required For 12A

PAN card of the organization.
Three-year bank account statement of the Trust.
Documental evidence of the creation of the Trust or NGO
Form 10A.

Procedure

Procedure for 80 G

The Commissioner of Income Tax – Exemption must receive an application in Form 10A.
Important paperwork must be submitted.
The Commissioner would review the materials after they were submitted. If necessary, he may request further documents or information, which must be delivered within the specified timeframe to avoid rejection.

Procedure for 12 A

The Commissioner of Income Tax - Exemption must receive an application in Form 10A.
The necessary paperwork must be presented.
After the documents are submitted, the Commissioner will assess the application and may request additional information.
If everything checks out, the registration will be finished shortly; else, it will be rejected.

Why Legal Birbal?

Legal Birbal has worked with a variety of non-profit organisations and is familiar with their needs. Our team of experts has extensive expertise and is well-versed in legal technicalities.

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FAQ

What is 12A and 80G?

Registration trusts and non-profit organisations are free from paying taxes under Section 12A. An NGO's donor can profit from 80G registration.

How do I apply for 12A and 80G online?

Professionals like Legal Birbal gives online legal services that can help you apply for 12A and 80G.

How to check if my NGO is eligible for 80G registration?

80G registration is open to all government-approved organisations and trusts. To find out, go to www.incometaxindia.gov.in and search for your company or trust.

What is the timeline involved for the new 12A and 80G registration?

New 12A and 80G registrations can be filed as soon as the company is formed.

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80G & 12AA Registration