80G & 12A Registration

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    Both the 80G and 12A registration sections of the Indian Income Tax Act provide tax advantages to non-profit organisations, including Section 8 Companies, for their charitable endeavours.

    The ability to receive tax benefits, which in turn draw donations and aid in fundraising efforts, makes these registers crucial for non-profit organisations. Non-profit organisations can function in a tax-efficient manner and efficiently work towards attaining their charity goals by getting these registrations.

    To promote private donations, the Income Tax Department gives an 80G Certificate to non-governmental organisations (NGOs), such as charity trusts or Section 8 businesses. This certificate entitles donors to a 50% tax exemption by allowing them to subtract the amount donated from their gross total income.

    Donors must present a stamped receipt for the donation, which should include the donor's name, the date of the donation, and the organization's PAN (Permanent Account Number), in order to be eligible for the exemption. Both NGOs and contributors can profit from tax benefits and promote charitable endeavours by obtaining the 80G Certificate and offering appropriate receipts.

    Section 12A of the Income Tax Act of 1961 allows for a one-time tax exemption for trusts, non-profit organisations, and section 8 companies. Companies that are registered under Section 12A benefit from not having to pay taxes on their excess income.

    Non-profit, charitable organisations make up non-governmental organisations (NGOs). They must pay taxes at ordinary rates while they are earning money if they are not registered under Section 12A of the Income Tax Act.

    Documents Needed to Register 12A

    The 12A certificate is a crucial document that can be used to prove an organization's legitimacy. It is an essential piece of documentation for obtaining funding from national and international organisations. An organisation may lose its right to tax exemption benefits if it doesn't obtain a 12A registration certificate.

    The following paperwork is needed in order to incorporate an NGO:

    The Trust Deed (for a Trust) or the Memorandum of Association (MoA) and Articles of Association (AoA) (for a Section 8 Company) are two examples of proof of incorporation.

    PAN Card of the registered applicant or the NGO's designated representative.

    A properly completed registration application.

    Financial statements for the last two years, comprising balance sheets and income and expense statements.

    These papers are necessary for the registration procedure and to confirm the NGO's legitimacy.

    Documents Needed to Register 80G

    The tax division issues the 80G certificate to NGOs and businesses registered under Section 8 of the 2013 Companies Act. It permits contributors to deduct their charitable contributions from their gross income and receive a tax exemption of up to 50%. This clause encourages donors to donate to these qualified organisations and get the 80G certificate. Donors must submit the donation receipt and the information about the beneficiary organisation in order to be eligible for the tax exemption.

    To obtain the 80G certificate, you will need to provide the following documents:

    1. Address proof of the registered office of the NGO:

    Property papers, if you own the registered office.

    Rented or leased agreement, in case of a rented office.

    2. List of donors:

    Include the names of the donors along with their PAN (Permanent Account Number) and address details.

    3. List of governing board of trustee's members:

    Provide the contact details of the members of the governing board of trustees.

    4. Proof of incorporation of the NGO:

    Submit the relevant documents that establish the legal incorporation of the NGO.

    5. PAN card of the registered applicant of the NGO:

    Include a copy of the PAN card of the applicant who is registered with the NGO.

    6. Trust deed or Memorandum of Association (MoA) and Articles of Association (AoA):

    Provide the trust deed in case of a trust, or MoA and AoA in case of a Section 8 company.

    Registration Process for the 80G

    Step 1

    Send the Commissioner of Income Tax (Exemption) in the area where the entity is located an application for the 80G certificate along with the necessary supporting papers.

    Step 2

    Following receipt of the application and other documentation for 80G registration, the Income Tax Department will perform an on-site examination.

    Step 3

    The Income Tax Officials may ask for more documents or proof for verification if any discrepancies or missing information are found.

    Step 4

    The Commissioner will grant the institution an 80G certificate following a successful review of the supporting documentation and the NGO's office.

    Registration Process for the 12A

    Step 1

    In accordance with Rule 17A of the Income Tax Act of 1961, submit a Form 10A application to begin the 12A registration process.

    Step 2

    Fill out the application in accordance with the jurisdictional commissioner of income taxes (exemptions) requirements.

    Step 3

    The Commissioner will examine the organization's operations to confirm their legitimacy after receiving the application form and any supporting documentation. If considered required, more paperwork or data may be asked for.

    Step 4

    The Commissioner will issue a formal order approving 12A registration following a favourable review. The applicant will be given the chance to argue their argument before the application is denied in the event of dissatisfaction.

    80G & 12A Registration Costs

    80G & 12A Registration

    ₹ 2,499 / Only

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      Benefits 12A Registration

      The initial registration required for establishing an NGO is the 12A registration, which provides exemption to NGOs applying for tax exemption under the provisions of the Income Tax Act, 1961. This registration ensures that the NGO is eligible for tax benefits and exemptions.

      Benefits 80G Registration

      Achieving an 80G registration certificate improves the entity's standing with the general public. With the help of this certificate, donors can donate to an NGO and receive tax breaks that will lower their tax obligations. The 80G certificate therefore helps both the donor and the NGO.

      Why Choose FilingMan

      for 80G & 12A Registration?

      At FilingMan, we distinguish ourselves by delivering a comprehensive and client-centric approach that ensures a seamless experience for all your filing and registration needs. With a team of seasoned experts, we bring a wealth of knowledge and precision to every task, ensuring accuracy, timeliness, and compliance with the latest regulations.

      Our commitment to excellence is evident in our meticulous attention to detail, which translates into error-free documentation and a smooth, hassle-free process. FilingMan takes pride in going the extra mile by providing personalized guidance and support tailored to your specific requirements, making us your trusted partner in navigating the complex landscape of filing and registration.

      80G & 12A Registration FAQ'S

      What is the purpose of 80G & 12A registration?
      80G and 12A registration are provisions under the Income Tax Act that allow nonprofit organizations and charitable institutions to avail tax exemptions for donations received and their overall income. This registration encourages individuals and businesses to contribute towards social causes while benefiting from tax deductions.
      Who is eligible for 80G & 12A registration?
      Nonprofit organizations, charitable trusts, and entities engaged in promoting education, healthcare, relief of poverty, advancement of arts, science, and other charitable purposes can apply for 80G & 12A registration. The eligibility criteria and requirements may vary, and it's advisable to consult with experts for accurate guidance.
      What are the benefits of obtaining 80G & 12A registration?
      Organizations with 80G & 12A registration can provide donors with tax benefits, encouraging more contributions. Donors can claim deductions on their taxable income for the amount donated. Additionally, registered entities enjoy exemptions on income generated from their charitable activities, enabling them to channel more resources towards their mission.
      What is the application process for 80G & 12A registration?
      The application process involves submitting detailed documents, including the organization's objectives, financial statements, and compliance records, to the concerned authorities. The application is reviewed, and if all requirements are met, the registration is granted. However, the process can be intricate, and seeking professional assistance is recommended.
      Is 80G & 12A registration permanent?
      No, the registration is not permanent. It is usually granted for a specific period and needs to be renewed periodically. Organizations must adhere to the regulations and continue to meet the eligibility criteria to maintain their registration status. Renewal processes may involve reapplication and reevaluation of the organization's activities and financials.