80G and 12A Registration

Let Compliance Calendar LLP help you in 80G and 12A Registration!

(Registered Under the Income Tax Act, 1961)

All NGOs (be it a Trust, Society or Section 8 Company) must apply for 80G & 12A Certificate to provide Income Tax Deductions to the donors and itself availing exemption from paying income tax to the Income Tax Department by having 12A Certificate respectively.

Income Tax Deduction (80G) and Exemption (12A) are mostly misunderstood concepts. Most of the time, NGO Founders find it difficult to often draw a line of demarcation between Section 80G and 12A Registration. We at CCL being a Professional Firm have Chartered Accountants as our NGO Advisors. Let us make you understand why and when NGO have to get themselves registered under Sections 80G and 12A of the Income Tax Act, 1961 respectively.

What is 80G & 12A Registration and why it is important for all NGOs to have registration under the 80G and 12A of the Income Tax Act, 1961: -

80G Registration: - One of the most advisable way you can save tax while doing some charity work is by using the deductions available under Section 80G of Income Tax Act. Section 80G of the I-T Act allows donations made to specified relief funds and charitable institutions as a deduction from gross total income before arriving at taxable income.

12A Registration: - Under the Income Tax Act, 1961, non-profit entities such as charitable trusts, religious organizations, NGOs which are registered under Section 12A are eligible to claim full exemption from income tax. Hence, it is important for all such NGOs, trusts or organization to get registered under section 12A soon after their incorporation and especially after a few years of existence.

Know more about 80G and 12A Registration with the support of our experienced Compliance Managers at Compliance Calendar LLP.

If you want us to help you understand Registration under 80G and 12A for your NGOs,

Documents Required of 80G and 12A Registration

Registration under 12A & 80G of the NGO under Income Tax Act, 1961 is one of the most successful feet for any NGO (Be it Trust/ Society/ Section 8 Company) as this gives them the freedom to accept more charity without any hassle to answer the Donors as to why their donation did not qualify for 80G and why any income is causing the company to pay the income tax under the I-T Act, 1961.

To register any NGO under 12A and 80G of the Income Tax Act, 1961. we require certain fixed documents whose quick checklist has been given below for your easy understanding:

Copy of PAN of the NGO;
Audited Balance Sheet, Income & Expenditure Account for the preceding three financial years, if applicable;
Certified copy of Trust Deed/Society Registration Certificate and its Bye Laws/Certificate of Incorporation and Memorandum and Articles of Association of a Section 8 Company;
Copies of Electricity Bill/House tax receipt/Water Bill of the registered office;
Evidence of welfare activities carried out and progress report since inception;
List of donors along with their full address and PAN;
List of Governing Body members and their contact details;
A Power of Attorney for authorizing CCL to submit application and liaison with officials of the Income Tax Department.

Legal Procedures of 80G and 12A Registration

Since registration under 80G and 12A is completely a legal procedure, we at Compliance Calendar LLP can help you to register your NGO under 12A and 80G if you are struggling to get proper guidance with regard to its legal registration process.

You can Get in touch with our Compliance Manager to understand 12A & 80G Registration, compliance requirements including guidance with regard to their functioning and day-to-day operation, be it maintaining accounts, meeting legal compliance or making sure all the mandatory requirements of the law are fulfilled to save you from the severe fines, penalties and imprisonment due to non-compliance.

Get in touch with us now to give you a Quotation and Proposal.

Send us your queries at info@ccoffice.in or WhatsApp/Call us at +91 99 88 42 42 11.

Features & Benefits of 80G and 12A Registration

Tax deduction to Donors:

Donors of the NGOs get tax deductions under section 80G of the Income Tax Act, 1961.

Tax exemption to NGOs:

NGO being a non-profit organization, they leverage the exemption from the provision of income tax under section 12A of the Income Tax Act, 1961.

Value Addition to NGOs:

An NGO having the 12A & 80G Registration have more value in the eyes of the society.

Availing Government Grants/Funding:

The basic criteria for an NGO to go for Government Grants/Funding is the Registration of the NGO under 12A & 80G of the Income Tax Act, 1961.

Benefits Under 80G of the I-T Act:

An NGO can issue exemption certificates to the person, who has made some donations to the NGO. Such exemption certificates issued by the NGO will enable the donor to claim and avail income tax exemptions up-to the 50% of total donated amount. Therefore, registration under Section 80G is very important for a NGO, so, it can receive donations from general population, corporate under CSR Schemes etc.

Benefits under 12A of the I-T Act:

Every NGO has to prepare and file its Balance Sheets & Income and Expenditure Account with the Income Tax authorities. Income tax shall be payable by an NGO on its excess income over expenditure if the NGO is not registered under Section 12A of the Income Tax Act, 1961. Therefore, in order to avoid Income Tax liability, an NGO must get itself registered with the Commissioner of Income Tax (Exemptions) under Section 12A of the Income Tax Act, 1961.

We at Compliance Calendar LLP can prepare all necessary documents including application forms etc. to help you get your NGO registered under Section 80G & 12A of the Income Tax Act, 1961. To get quote for your NGO to get 12A & 80G Registration, Get in touch with us now.

Frequently Asked Questions

What is Registration under 12A & 80G Registration for NGOs:

NGOs must apply for 12A & 80G Certificate to provide income tax exemption to the donors! It also helps NGOs in availing government funding.

How much time it takes for NGOs to receive 12A & 80G Certificate?

Normal processing time is within a month. However, the same can be more depending on the FIFO method.

Is it necessary to for all NGOs to have 12A & 80G of the I-T Act, 1961?

Yes, this gives the NGOs many benefits and features especially for claiming the deductions for Donors and Income Tax exemption for NGOs.

What are the documents required to register for 80G & 12A Certificate?

Please refer the Documents section above.

Do we need to visit any department to register for 12A & 80G of the I-T Act?

Yes. Our Compliance Manger will be there to assist you in the complete procedure of 80 G & 12 Registration.

Can NGOs accept foreign donations?

An NGO is allowed receive foreign donations only when FCRA (Foreign Contribution Regulation Act 1976) registration has been obtained from Ministry of Home Affairs. FCRA license is normally applied when the Society is minimum 3 years older (in exceptional cases can be allowed-T&C.)

Further Questions/ Confusion or anything bothering you?

Not to worry at all! Someone from our experienced team will resolve all your queries. Our Compliance Manager will help you to give you the best advice without any fees. Write to us at info@ccoffice.in or WhatsApp/Call us +91 99 88 42 42 11.