80G and 12A Registration

If NGOs and Charitable Organizations fulfill the following conditions, then they are eligible for registration under 80G and 12A:

• They should not have business as their source of income.

• They can only be a registered society or a charitable trust.

• They should not use their income or donations for any purpose other than charitable use.

• The receipts and expenses of these entities must be recorded in the book of accounts regularly.

• The trustees of the organization cannot use the funds or donations for any other use except the entity’s charity purposes.
• No benefit should be provided to any religion or caste through their activities.

It is mandatory for NGOs and Trusts to apply for 80G and 12A certificates soon after their registration.

About 80G Certificate

The 80G certificates are granted to Section 8 companies like NGOs or Non-Governmental Organizations by the Income Tax Department of India. The 80G certificate is issued to promote the donation of funds to non-profit organizations and NGOs. Additionally, when a donor donates to such an organization, they get a 50% tax deduction, and they can deduct such sums from their Gross Total Income. For tax exemption purposes, the donor must also provide a stamped receipt or another document as proof of the donation. Details like the name of the donor, the date of contribution or donation made, and the PAN number of the organization should be visible on the receipt.

The Documents required for the 80G Registration 

The documents that are required for 80G registration in India are as follows:

• MoA and Incorporation certificate of the entity or Societies and a Trust Deed in case it is a Trust.

• In the case of a rented property, a No Objection Certificate or NOC is required from the owner of the premises where the entity’s registered office is located.

• Buy filled Form 10G.

• NGO’s PAN information copy

• Copy of any Utility Bills

• A list of the contributors or donors along with the PAN and Addresses

• Annual Returns, Income Tax Returns and the books of Accounts duly updated in the last three years

• Original MoA, RC or Trust Deed.

Process for 80G Registration in India

The steps for 80G registration are as follows:

• Submit all required documents and reports to the authorized Commissioner of Income Tax exemption within the area limit of the entity to obtain an 80G certificate.

• The Income Tax department will conduct an on-premise inspection before verifying the documents submitted for 80G registration.

• The authorized Income Tax Officers may demand further documents if they are unsure of anything and need more information.

• The Commissioner issues the 80G Certificate to an NGO once he has verified and is satisfied with the submitted documentation.

• An 80G certificate validity lasts for the organization’s lifetime.

About 12A Registration Online in India

Under the Income Tax Act 1961, trusts, non-profit organizations, and Section 8 companies are granted a one-time tax exemption under Section 12 A. Registered organizations under section 12A are eligible for tax exemptions, which means they are not liable for paying taxes on their surplus earnings.

The term “Non-Governmental Organization” refers to organizations or entities that are engaged in non-profit activities and charitable organizations. While they gain income, they are also required to pay income tax if they are not registered under section 12A of the Income Tax Act.

Documents needed for 12A Registration 

The documents that are necessary for the 12A registration process are :

• A Trust Deed or Memorandum of Association if it is a Trust. An Incorporation Certificate or Certificate of Incorporation if it is a Society.

• Copies of MoA and AoA, along with a Certificate of Incorporation, must be presented to the Section 8 companies.

• Form 10A.

• Last three years, the Bank account statement of the Trust

• PAN number of the entity or organization.

Procedure for 12A Registration Online in India

The steps involved in 12A registration in India are:

• As per Rule 17A of the Income Tax Act, 1961, the applicant or the entity must file the application in Form 10A.

• According to the guidelines of the Jurisdictional Commissioner of the Income Tax Department (Exemptions), the application needs to include all necessary information.

• An authorized Commissioner verifies the documents and the activities of the organization after receiving the form and the documents. He can also expect additional documents, evidence, or information if he considers it necessary.
• Upon receiving the satisfactory report, a written order is granted by the authorized CommissionerCommissioner to sanction the 12A Registration. Upon receiving the application from the entity or applicant, the CommissionerCommissioner may reject it if he is unsatisfied with the documents and application form.

12A Registration certificate can be cancelled if found that the entity is engaged in any of the following activities:

• If it doesn’t follow the object of the organization

• If the entity isn’t genuine and around suspicion

• If the organization’s activities benefit any one caste or religion

• If the funds are being used for any prohibited purposes

• If the income of the entity is used to benefit or fulfill any purpose of a group or any individual

Frequently Asked Questions