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Apply Online for 12A and 80G Registration with N D Savla & Associates
In India, non-profit organisations can benefit significantly from the 12A and 80G registrations under the Income Tax Act of 1961. These registrations not only provide tax exemptions for the organization but also offer tax deductions to the donors, making them crucial for NGOs. 12A registration grants non-profits an exemption from paying income tax on the income generated through donations or grants, ensuring more funds are available for charitable activities. On the other hand, 80G registration incentivizes donors by allowing them to claim deductions on donations made to the NGO. To fully avail these benefits, the process of 12A and 80G registration must be completed online.
At N D Savla & Associates, we specialize in assisting non-profit organizations with the seamless process of 12A and 80G registration. Our experts guide you through every step to ensure you get the benefits and privileges available under these provisions of the Income Tax Act. Contact us today to get your 12A and 80G registrations easily and start benefiting from these tax exemptions and incentives!
What is 12A and 80G Registration?
12A Registration
Section 12A of the Income Tax Act, 1961, provides tax exemption for NGOs by allowing them to retain the income earned through donations, grants, and other charitable activities without paying income tax, as long as these funds are used for charitable purposes. This registration is essential for any trust, society, or Section 8 company involved in charitable or religious activities.
80G Registration
80G of the Income Tax Act enables donors to claim tax deductions on the donations they make to registered NGOs under 12A. This encourages more donations by providing donors with financial benefits, such as a deduction on taxable income. Essentially, 80G registration helps NGOs attract more financial support, benefiting both the organization and its supporters.
Who Can Apply for 12A and 80G Registration?
Charitable Trusts: Organisations established with a primary goal of charitable purposes.
Registered Societies: Societies registered under the Societies Registration Act.
Section 8 Companies: Non-profit companies established under Section 8 of the Companies Act, 2013.
Religious Organizations: Groups involved in religious and charitable activities.
Educational Institutions: Non-profit educational bodies, schools, and colleges.
Medical Institutions: Non-profit hospitals or medical research organisations.
Eligibility Criteria for 12A and 80G Registration
12A Registration Criteria:
Nature of Organisation: Must be a trust, society, or Section 8 company established for charitable or religious purposes.
Charitable Activities: The organization must engage in charitable activities such as poverty alleviation, education, healthcare, etc., with no profit motive.
Proof of Registration: Must be registered as a trust, society, or Section 8 company under the relevant laws.
Income Utilization: Funds must be used exclusively for charitable or religious purposes.
Financial Documentation: The organization must maintain proper bookkeeping and annual tax filings.
80G Registration Criteria:
12A Registration Requirement: The NGO must already be registered under 12A.
Charitable Purpose: The NGO must operate for charitable or religious purposes.
Inclusivity: The NGO’s benefits must be available to a broad spectrum of society, not restricted to any particular caste or community.
Regular Accounting: Accurate and transparent financial records must be maintained.
Benefits of 12A and 80G Registration
Tax Exemption for NGO: 12A registration provides an NGO with tax exemption on income generated from donations and grants.
Tax Deductions for Donors: 80G registration enables donors to claim tax deductions, encouraging more donations.
Increased Credibility: Both registrations enhance the NGO’s credibility, making it more trustworthy for donors and partners.
Government Grants: Many government schemes require 12A and 80G registrations for NGOs to qualify for funding.
Sustainable Funding: These registrations help build long-term donor relationships, ensuring financial stability for NGOs.
Documents Required for 12A and 80G Registration
To complete the online registration process for 12A and 80G, the following documents are required:
Trust Deed, Society Registration Certificate, or Section 8 Company Certificate.
Memorandum of Association (MOA) and Articles of Association (for Section 8 companies).
PAN Card of the organization.
Bank account statement of the NGO.
Audited accounts of the organization for the last three years.
List of trustees, members, or directors of the organization.
List of activities carried out by the organization.
FCRA registration (if applicable).
NGO Darpan ID (for NGOs operating in India).
12A and 80G Registration Process Online
NGO Formation and Registration
Choose the appropriate legal structure (Trust, Society, or Section 8 Company) and officially register your NGO with the relevant authority.
Document Preparation
Gather necessary documents such as registration certificates, MOA, audited financial statements, and FCRA registration, if applicable.
Form 10A Application
Complete Form 10A for 12A and 80G registration. Ensure all the required details are accurately filled.
Application Submission
Submit Form 10A along with the necessary documents to the Income Tax Commissioner or through the Income Tax Department’s website.
Review and Inspection
The tax authorities will review your application and may conduct an inspection to verify compliance.
Registration Confirmation
If the application is approved, you will receive your 12A and 80G Registration Certificates, confirming eligibility for tax exemptions.
Utilize the Benefits
With your 12A and 80G certificates, start availing tax exemptions and encourage donors by offering them tax deductions
Contact N D Savla & Associates for 12A and 80G Registration Assistance
At N D Savla & Associates, we provide end-to-end support for 12A and 80G registrations. From document preparation to submission and post-registration assistance, our experts guide you through the entire process, ensuring compliance and maximizing your NGO’s potential for growth. Let us help you achieve your charitable goals and expand your reach through these valuable tax benefits.
Contact us today for expert advice and seamless registration assistance!
