12A AND 80G REGISTRATION

ABOUT 80G AND 12A REGISTRATION

An NGO & 80G can apply for 12A for tax exception on a surplus fund of the NGO as well can obtain 80G certification for donor’s tax exception.

 

It is a registration done by NGO to get an organization income exempted from Tax. All income shall not be taxable after 12A registration. If NGO does not get 12A registration, income tax is payable on surplus during the year.

 

Advantages

UNDER SECTION 12A

  • Income will be exempted from taxation.
  • Benefits of taking grants from Government, Abroad, other agencies.
  • Benefits of FCRA Registration.

UNDER SECTION 80G

  • Attracts the donor to make a donation.
  • The donor can avail deduction from its taxable income.

Documents required

UNDER SECTION 12A

  • List of name, address and Pan details of the trustees/managers;
  • Certified true copy of the instrument(registration certificate) under which the trust/institution was created/established;
  • Certified true copy of the document (Trust deed/MOA and AOA) which is evidence of such institution/trust creation;
  • Copy of PAN card of NGO.

UNDER SECTION 80G

  • Registration Certificate and MOA /Trust Deed
  • NOC from Landlord (where registered office is situated)
  • Copy of PAN card of NGO
  • Copy of Electricity Bill / House tax Receipt /Water Bill
  • Evidence of welfare activities carried out & Progress Report since inception or last 3 years
  • The statement of accounts, Balance Sheet since inception or last 3years
  • List of donors along with their address and PAN
  • List of governing body board of trustees members with their contact details
  • Copy of registration granted under section 12A or copy of notification issued under section 10(23)or section 10(23C)
     

ELIGIBILITY

UNDER SECTION 12A

  •  Charitable Trusts, Religious Trusts, Societies and Section 8 Companies Not applicable to the Private or family Trust.

UNDER SECTION 80G

  •  Donation made to charities prescribed under category 80G.
  • The NGO shall be duly registered under the Act.

     

PROCESS

Dully filled-in application

Dully filled-in application will be submitted to the exemption section of the income Tax Department.

Receive Notice

NGO will receive notice for clarifications from Income Tax Department in 2-3 months after applying.

Reply of Notice

Reply of notice will be submitted by the consultant along with all relevant desired documents to the Income Tax Departments.

Consultant will personally

Consultant will personally visit the Income Tax Departments to follow-up the case on behalf of the applicant organization.

Exemption Certificates

Exemption Certificates will be issued.