12A and 80G Registration for NGOs

Non-profit organizations (NGOs), charitable trusts, and Section 8 corporations can seek 80G registration and certification under Section 12A. These certifications can be pursued simultaneously or independently. However, if an NGO opts for separate applications, it is essential to first apply for registration under Section 12A. Obtaining 12A certification is a prerequisite for applying for 80G registration under the Income Tax Act, 1961.

Registration under Section 12A: Understanding the Basics

Any non-profit entity, such as a charitable trust, religious association, Section 8 company, or NGO, can claim full exemption from income tax by being registered under Section 12A. Immediate registration under Section 12A is crucial for NGOs to avoid income tax liability on surplus amounts during the year. Whether registered as a trust, society, or Section 8 company, every NGO must seek 12A certification to avail tax exemptions and facilitate the receipt of grants from government or international organizations.

Advantages of Registration under Section 12A:

• Exemption from income tax on earnings.
• Eligibility for government and international grants.
• Facilitates FCRA registration.

Registration under Section 80G: Unraveling the Benefits

Section 80G registration under the Income Tax Act offers benefits to donors contributing to NGOs. Donors receive financial benefits by deducting their contributions from taxable income.

Advantages of Registration under Section 80G:

• Donors can avail deductions from taxable income.
• Attracts donors to make contributions.

Documents Required for Registration:

To apply for registration under Sections 12A and 80G, the following documents are necessary:

• Form – 10A for Section 12A registration (duly filled).
• Form – 10G for Section 80G registration (duly filled).
• Certificate of Registration and MOA/Trust Deed (two copies – self-attested).
• NOC from Landlord.
• Copy of PAN card of NGO.
• Photocopy of Electricity Bill, House Tax Receipt, or Water Bill.
• Evidence of welfare activities and Progress Report for the last 3 years.
• Books of Accounts, Balance Sheet, and ITR (if any) for the last 3 years.
• List of donors with their addresses and PAN.
• List of governing body members with their contact details.
• Deed for verification of Original RC and MOA/Trust.
• Authority letter in favor of NGO Factory.
• Any other document/affidavit/undertaking information as required.

Registration Process with ETaxwala:

ETaxwala, a professional tech-based online and legal services provider, simplifies the 12A and 80G Registration process for NGOs:

Step 1: Fill in the application for exemption with the Income Tax Department.

Step 2: Respond to clarifications from the Income Tax Department within 2-3 months.

Step 3: Submit a reply to the notice along with necessary documents.

Step 4: ETaxwala follows up with the Income Tax Department on behalf of the NGO.

Step 5: Receive the Exemption Certificate upon successful completion.

ETaxwala offers expert assistance to ensure accurate filing of 12A and 80G Registrations for NGOs, adhering to all regulatory requirements. For a free consultation, connect with our top-skilled experts.

FAQs:

Q. Where to apply for registration under sections A and G of the Income Tax Act?


Ans: - Application for registration under sections 12A and 80G can be submitted to the Commissioner of Income Tax (Exemption) with jurisdiction over the institution.

Q. Can both applications under sections A and G of the Income Tax Act be applied together?


Ans: Yes, both applications can be filed together or separately. If an organization chooses to apply separately, registration under section 12A must precede the application for section 80G of the Income Tax Act.

Q. When can an organization apply for registration under sections A and G of the Income Tax Act?


Ans: Organizations can apply for registration under sections 12A and 80G immediately after the registration of the NGO.

Q. What is the timeline for getting registration under sections A and G of the Income Tax Act?


Ans: If an application for registration under sections 12A and 80G is processed through the NGO factory, the expected timeline is 3-4 months.

Q. What is the validity period of the registration under sections A and G of the Income Tax Act?


Ans: Registration under section 12A has no expiry, while registration under section 80G is valid for 1 to 3 years.