12a 80g Registration

12a 80g Registration Services

In India, non-profit organisations can gain valuable tax benefits through 12A and 80G registrations offered by the Income Tax Department. By obtaining 12A registration, non-profit organisations get an exemption from paying income tax, enabling them to focus more on their charitable activities. With 80G registration, donors can claim tax deductions on their contributions, encouraging more charitable giving.

At Startup Club India, we understand the importance of getting Section 12A and 80G registrations for non-profit organisations. Connect with our experts today to get your 12A and 80G registration process started. 

Through 12A and 80G registrations, NGOs in India secure tax exceptions and benefits, making it easier to focus on their charitable work. Sections 12A/12AA and 80G of the Income Tax Act, 1961, provide crucial tax exemptions that support NGOs in India.

12A Registration

Non-profit organisations in India that come under the Income Tax Act 1961 are provided this certificate. After registration under Section 12A, an NGO is entitled to tax exemption of income, which means it is not required to pay tax on surplus funds that it generates through grants, donations or any other revenue, provided these funds are utilized for charitable purposes. The registration for NGOs is important because it helps the over-all utilisation of funds available to each activity of the NGO.

80G Registration

12A registration provides tax relief for NGOs, while 80G registration encourages donations by offering tax benefits to donors. By donating to a 12A-registered NGO, individuals and entities can lower their taxable income. The deduction applies to a specific percentage of the donation, offering significant tax savings. The main goal of this provision is to motivate more donations by offering financial benefits to donors.

With tax advantages for both NGOs and donors, these registrations encourage greater charitable giving.

Who can apply for 12A and 80G registration?

12A and 80G registration can be applied by the following types of organisations:

• Charitable Trusts

• Registered Societies

• Section 8 Companies

• Religious Organisations

• Educational Institutions

• Medical Institutions

Eligibility Criteria for 12A 80G Registration

Organizations must fulfill certain criteria outlined by the Income Tax Department to qualify for 12A and 80G registration.:

12A Registration Eligibility Criteria

This registration applies to charitable and religious NGOs, allowing them to benefit from tax exemptions on donation-based income. To be eligible for Section 12A, an organisation must be able to meet the following criteria:

• Nature of Organisation: Trusts, societies or Section 8 companies that are focused only on charitable or religious purposes such as poverty relief, education, healthcare, environmental conservations and so on, are eligible under Section 2(15) of the Income Tax Act.  
• Charitable Activities: The organisation must operate solely for its charitable mission, ensuring that no individual or group is getting any personal financial gain.
• Registration Proof: The organization must be officially registered as a trust, society, or Section 8 company under applicable laws, with the necessary documentation submitted during registration.
• Income Utilization: The use of all incomes and assets must be for charitable or religious purposes only. Should not give a direct or indirect benefit to members or specific individuals.
• Financial Documentation: To show accurate financial operations, proper bookkeeping and documentation must be maintained.
• Tax Compliance: NGOs must fulfill their tax returns every year to continue their exemption benefits.
• Political Neutrality: Organisations should not participate in or support any political activity, or else this can put an NGO’s 12A registration at risk.

80G Registration Eligibility Criteria

By donating to an 80G-registered NGO, individuals and businesses can claim tax deductions. Eligibility for this registration includes the following criteria:

• Nature of Organisation: The organization should be a registered trust, society, or Section 8 company committed to charitable or religious causes, beneficial for the public.
• 12A Registration Requirements: Organisations must already have 12A registration, showing their tax-exempt status under Sections 11 and 12.
• Restrictions on Usage of Income: The organisation’s documents must clearly state that all the funds will be used for charitable purposes only.
• Inclusively of Beneficiaries: The benefits of the organisations should not only be for any particular religious community or caste.

Regular Accounting: Ensure that regular and accurate financial records are kept; this way, you can provide transparency and accountability.

Benefits of 12A and 80G Registrations

• Tax Exemptions for Donors

• Enhanced Credibility and Trust

• Increased Fundraising Potential
• Access to Government Grants
• Long-term Sustainability
• Efficient Utilization of Resources

Registration Documents Required for 12A and 80G

Documents required for 12A and 80G registration:

• Trust Deed/Society Registration Certificate/Section 8 Company Certificate
• Memorandum of Association and Articles of Association (for Section 8 companies only)
• PAN card of the organization
• Bank account statement of the organization
• Submission of the last three years' audited accounts is required.
• List of trustees/members/directors of the organization
• List of activities carried out by the organization

12A and 80G Registration Process Online

As per the Finance Acts of 2020 and 2021, NGOs must now submit Form 10A to register under Sections 12A and 80G of the Income Tax Act. The registration process for 12A and 80G online is given below. 

Note: The old provisions under Section 12AA have been replaced by Section 12AB, making re-registration mandatory for NGOs registered under 12A, 12AA, or 80G from April 1, 2021.

Conclusion

If organisations are looking to maximise their tax benefits and attract more donors, then they must secure 12A and 80G registrations. At Startup Club India, we offer expert 12A and 80G Registration Services to help you complete the process smoothly. Be it 12A and 80G registration services in Delhi or anywhere in the country, our experienced 12A 80G Registration Consultant is here to assist. Contact us today for the best 12A 80G Registration Services in India, ensuring seamless compliance and long-term benefits for your NGO