12A & 80G REGISTRATION

12A and 80G registration provide NGOs income tax exemption and donor tax benefits, ensuring credibility, transparency, and financial support.
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12A & 80G REGISTRATION

VS Legal

The charitable institutions are eligible for certain tax exemptions and benefits in India. The exemptions and benefits are dealt with under Sections 12A/12AA and 80G of the Income Tax Act, 1961.

All NGO’s should avail the advantage of these provisions to attract potential donors. By virtue of 12A registration, Trus

Today in this growing IT world, the website of a NGO is essential ts and NGOs and other Section 8 companies enjoy exemption from paying income tax. If an NGO registered under section 80g then the person or the organisation making a donation to the NGO will get a deduction of 50% from his/its taxable income. If an ngo gets registered under 12A and 80g, then only it is applicable for any government funding. A newly registered ngo can also apply for 80gregistration. Section 12a and 80g is of a great relief.

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Application for registration under 80G and 12AB can be applied together or it can be applied separately. If an organization wants to apply for both registrations separately, then application for registration u/s 12AB would be applied first. Getting 12AB registration is mandatory for application of registration u/s 80G of Income Tax Act, 1961. which speaks about the NGO profile, activates, their members, its history, address and the social work done by it. They should maintain their balance sheets, annual reports, accounts, records, bills, vouchers, photographs for proof of their social activities.

The effect of such recognition is that the respective institutions are exempted from paying income tax, subject to the satisfaction of certain other compliance requirements as per law.
Benefits of 12A Registration
  • Government Schemes and Grants
  • Tax Exemption
  • Proof of Existence.
  • Increase in Reputation
  • More Donors
  • Donors can save tax
  • Government Funding.
QConditions for registration u/s 80g:
For approval under section 80G the following conditions are to be met
The NGO must not have any income which are not exempted, such as company income. If the NGO has business income, then it ought top reserve separate books of accounts and need not divert donations gotten for the purpose of such business if .
The bye laws or goals of the NGOs must not contain any regulation for investing the income or possessions of the NGO for purposes aside from charitable activities.
The NGO is not working for the advantage of particular religious community or caste.
The NGO maintains routine accounts of its expenditures& receipts.
The NGO is appropriately signed up under the Societies Registration Act 1860 or under any law corresponding to that act or is signed up under section 8 of the Companies Act 2013.
1. The organization must be a registered NGO
2. NGO should not have any income generated from a business
3. The organisation must maintain a regular book of accounts in favour of their receipts and expenses
1. Application for 12AB registration is made in Form 10A which is prescribed in Rule 17A of the Income Tax Act, 1962. It has to be filed with proper documents to Jurisdictional Principal Commissioner or Income Tax Commissioner (Exemptions).
2. On receiving the application for registration, the Commissioner verifies the documents and genuineness of the NGO activities. He may call for additional documents and other information which he considers important or necessary.
3. After verification, the Commissioner passes an order in writing for the grant of 12AB Registration. If the Commissioner is not satisfied, he will reject the application, Before which the applicant is provided a fair chance to be heard.
1. Application for 80G registration is made in Form 10G. It has to be filed with proper documents to Jurisdictional Principal Commissioner or Income Tax Commissioner (Exemptions).
2. On receiving the application for registration, the Commissioner verifies the documents and genuineness of the NGO activities. He may call for additional documents and other information which he considers important or necessary.
3. After verification, the Commissioner passes an order in writing for the grant of 80G Registration. If the Commissioner is not satisfied, he will reject the application, before which the applicant is provided a fair chance to be heard.
The process of registering your organisation u/s 12AB and 80G is complicated and involves various compliances. Our experts at VS IPR & LEGAL ADVISORS LLP can simplify the whole registration process for you. Register under 12AB and 80G online in 3 easy steps:
  • Step 1: Fill our simple form and receive a callback from our team of experts
  • Step 2: Provide all the required documents for registration and make 50% payment in advance
  • Step 3: Your work will be done and you’ll have to make the balance payment
The existing religious or charitable institutions or NGO’s had to re-apply to the Income Tax authorities for revalidation of the existing registrations. The charitable institutions cannot claim the benefits provided to them under 12A and 80G deductions without revalidation. This revalidation process focuses on
institutions registered under Sections 12A/12AA and/or 80G of the Income Tax Act, 1961 are whether the charitable activities of the institution or trust, or NGO are genuine or not.
The revalidation is necessary due to the changes made by way of amendment to the Finance Act, 2020, which mandates that the charitable required to re-apply online for approval/registration by 31 August 2020. This amended provision came into force on 1 June 2020.
The Income-Tax (6th Amendment) Rules, 2021, came into force on 1 April 2021. Thus, the institutions and trusts with existing registrations under Section 12A/12AA or/and 80G should file the application for fresh registration within three months from 1 April 2021, i.e. before 30 June 2021, as per the Income-Tax (6th Amendment) Rules, 2021.

Documents Required for 12AB & 80G Registration

Form 10A for registration u/s 12AB
Form 10G for registration u/s 80G
Registration Certificate & MoA in case of Section 8 Company and Society
Trust Deed in case of a Trust
Address proof where the organization is registered
Copy of PAN of the NGO
Copy of Utility bills like electricity bill, water bill, etc.
Books of accounts of past three years or since inception
Activity and Progress/Project Report of past three years
List of donors along with their details
Bank account statement of last three years