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About

80G and 12AA registrations are crucial certifications issued by the Income Tax Department of India to non-profit entities such as charitable trusts, NGOs, and societies aiming to benefit from income tax exemptions and provide tax reliefs to their donors. Registration under Section 12AA (currently 12AB) grants these organizations the right to claim exemption on their income, while Section 80G enables donors to avail deductions on the donations they contribute, thereby promoting charitable giving. These approvals are governed under the Income Tax Act, 1961, and are awarded after a detailed scrutiny of the organization’s objectives, activities, and financial integrity. The application and approval process is now handled via the National Faceless Assessment Centre (NFAC), with registrations valid typically for a five-year term, after which renewal is necessary. Besides tax advantages, acquiring 12AA and 80G certificates strengthens the organization’s trustworthiness, transparency, and eligibility for securing government grants, Corporate Social Responsibility (CSR) funds, and foreign contributions regulated under FCRA.         

Document Required

  • PAN Card copy of the NGO.
  • Trust Deed, if the applicant is a Trust.
  • List of the Board of Trustees.
  • Registration Certificate and MoA if the applicant is registered as a Society or Section 8 Company.
  • Form 10G if applying for registration under section 12A.
  • Address proof of the registered office.
  • No Objection Certificate (NoC) from a landowner in case the office is rented.
  • Utility bill copies Water Bill, Electricity Bill.
  • Books of account with the records of last three years of operations or since the date of establishment including income tax returns.
  • Report on Welfare Activities undertaken in the last three years.
  • Bank account statement for the last three years.
  • List of donors with their PAN and address details.

What You Get

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Advantage

  • Income Tax Exemption: NGOs are exempt from paying income tax on their earnings under 12A registration.

 

  • Tax Deduction for Donors: 80G certification allows donors to claim tax deductions on donations made to the NGO.

 

  • One-Time Registration: 12A registration is valid indefinitely without the need for renewal as long as the NGO remains operational.

 

  • Eligibility for Grants: Registered NGOs can receive grants from government, national, and international donors.

 

  • Accumulation of Funds: NGOs can accumulate income for future use up to a specified limit under 12A.

 

  • Enhanced Credibility: Both registrations increase transparency and build donor trust.

 

  • Access to Foreign Contributions: 12A facilitates smooth receipt of foreign donations under FCRA.

 

  • Reduced Tax Liability: Accumulated income is exempt from tax, lowering the NGO’s tax burden.

 

  • Legal Recognition: These certifications establish the NGO’s legal identity, enabling access to grants, loans, and funding.

 

  • Boosted Donor Confidence: 80G certification encourages more donations by offering tax benefits to donors.

Time Duration

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Faq's

Q1. What is the purpose of 12A registration for NGOs?

A: 12A registration grants NGOs exemption from income tax on their earnings, allowing them to utilize more funds for charitable activities.

 

Q2. How does 80G registration benefit donors?

A: 80G certification enables donors to claim tax deductions on donations made to the NGO, incentivizing greater philanthropic contributions.

 

Q3. Is 12A registration a one-time process?

A: Yes, 12A registration is typically a one-time approval and remains valid as long as the NGO continues its operations and complies with regulations.

 

Q4. Can an NGO receive foreign contributions without 12A registration?

A: While 12A registration is not mandatory for foreign funding, it is often required to obtain FCRA registration, which governs foreign contributions.

 

Q5. Does 80G registration expire?

A: Yes, 80G certificates are generally valid for a specified period (usually 3 to 5 years) and require renewal upon expiry.

 

Q6. What documents are required to apply for 12A and 80G registrations?

A: Common documents include the NGO’s registration certificate, trust deed or memorandum of association, PAN card, audited financial statements, and details of governing body members.

 

Q7. Can an NGO apply for 80G registration without 12A?

A: No, 12A registration is a prerequisite for obtaining 80G certification.

 

Q8. How long does it take to get 12A and 80G registrations approved?

A: The approval process typically takes between 3 to 6 months, depending on the completeness of documents and verification procedures.

 

Q9. What are the consequences of operating without 12A and 80G registrations?

A: NGOs without these registrations may face tax liabilities on income and may not be able to offer tax benefits to donors, impacting fundraising efforts.

 

Q10. Can NGOs lose their 12A or 80G status?

A: Yes, failure to comply with regulatory requirements or misuse of funds can lead to cancellation of these registrations.