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80G & 12A Registration Form
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Overview
Non- Government Organizations (NGOs) in India rely primarily on donation to manage their day to day operations. NGOs are required to get themselves registered under Section 80G and section 12A of the Income Tax Act to claim tax exemptions available to both donors and recipients. 80G Registration comes under section 80G of the Income Tax Act that provides benefit to the donor of an NGO whereas 12A registration will benefit an NGO to get an organization exempted from Income tax. Both these registration typically needs to be done by an NGO post its incorporation. The process is too complicated and time consuming.
Moreover as per recent notification, all the existing NGOs registered under these 2 sections are required to re-register themselves under section 80G and 12AA to enjoy the tax exemptions. Further Form CSR-1 is required to be registered if an NGO seeks CSR funding.
80G and 12A registration online
Both 80G and 12A registration applies only to NGOs and Charitable organizations. Professionals from Legalite will help you to register for 80G and 12A in 4 easy steps
What is 80G Certificate?
80G certificate is issued to non-profit organizations, Section 8 company or a charitable trust by the Income Tax Department. The major objective behind the 80G certificate is to attract maximum donors to donate funds to such organizations mentioned above. The donar avails income tax exemption on 50% of the amount contributed to an NGO as the donar is allowed to deduct their donations from their Gross Total Income (GTI). To avail deduction under section 80G, the donar needs to attach certain proof in the form of receipt against the donation that is issued by the NGO consisting of name, date and PAN of the organization.
80G Registration Process
80G Registration process consists of the following steps:
Application has to be filed in Form-10A of the Income Tax Act
Once the application and the documents are submitted, the application will be reviewed by the Income Tax Commissioner.
The officials may demand additional documents and information
On satisfactory verification and scrutinizing of documents as well as the office of the NGO, the 80G certificate is issued to the organization.
Benefits of 80G Registration
Enhances credibility of an organization
Donors avail the tax benefit
Attracts more donors to donate
Eligibility to get the government funds
Organization can avail hassle free foreign contributions
What is 12A Registration?
Post discussion on 80G and its benefit, now its time to discuss briefly on 12A registration and 12A registration process.
Trust, NGOs and other Section 8 company avails the benefit of tax exemption under the Income Tax Act by virtue of Section 12A registration. An NGO not registered under this section cannot enjoy the privilege of tax exemption and would have to pay income tax just like other companies during the year.
12A Registration Process
12A Registration process consists of the following steps:
Application has to be filed in Form 10A as per rule 17A of the Income Tax Act.
Once the form and the documents are received, the commissioner verifies the integrity and authenticity of the organization.
The officers may demand additional information and document as deemed fit.
On satisfactory verification, officials grant 12A registration.
Benefits of 12A Registration
Tax exemption benefit to organization
Provision to gain grants from the government increases substantially
Registration certificate serves as a valid proof for the purpose of its existence.
FCRA benefits
Documents required for 80G & 12A Registration
- ✓ Audited Financial Statement and Income Tax Return of the organization for the preceding three financial years.
- ✓ Incorporation Certificate/ Registered Trust Deed of a trust / Society Registration Certificate in case of society
- ✓ NGO DARPAN (if available)
- ✓ Pan Card of the organization
- ✓ Three year bank account statement of the organization
- ✓ Copy of Utility Bills – Electricity bills, Water Bills or House Tax receipt.
- ✓ Lists of welfare activities being carried out by the organization.
New terms of Registration and Re-registration under section 80G and 12A
- Provisional Registration Certificate will be issued by the Income Tax Department to newly established NGOs, Societies, trusts applying for 80G and 12A Registration. It becomes due for renewal after expiry of 3 years.
- For Re-Registration, tenure will be revalidated for a period of 5 years by the Income Tax authorities and requires renewal after completion of every 5 years.
Re-validation under section 12A and 80G
Overall Process:
The overall re-validation process roughly takes about 2-3 months where the application is made to Income Tax Commissioner within 10 days from the date of submission of the required documents. It holds a time validity of 5 years and requires renewal after every 5 years.
Documents required for re-validation:
- Audited Financial Statement and Income Tax Return of the organization for the preceding three financial years.
- Incorporation Certificate/ Registered Trust Deed of a trust / Society Registration Certificate in case of society
- Lists of welfare activities being carried out by the organization.
- NGO DARPAN ID (if available)
- FCRA ID (if available)
- Copy of the 80G and 12AA certificate previously received.
General Queries
NGOs, Trusts and societies enjoy the benefit of Tax exemption by virtue of Section 12A whereas 80G provides benefit to the donors donating fund to an NGO.
You can apply for 80G and 12A online through Legalite by submitting required documents.
Previously, 80G and 12A registrations were valid for a lifetime of an organization. Now the validity of 80G and 12A has been kept for three years in case of provisional registration and 5 years in case of re-validation.
The deductions eligible for deduction has been specified upto 100% or 50% without restrictions.
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80G & 12A Registration
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