How to Register 12A and 80G Certificate to our NGO?

Non-governmental organizations in India are registered for many reasons and are also beneficial. Income tax exemption is available under its two major certificates – 80G and 12A. The objective of this article is that non-governmental organizations will know the owners in simple terms.

Application Form

If you are interested to list your NGO in our portal, then fill the form to further process. Our team will coordinate with you. (This form is only an application). 

If you are associated with an NGO, you are its fund manager or the proud founder of a significant donor. This article clarifies why NGO registration under 12A and 80G is available in India and is essential for tax exemption. Today we will learn about 80G and 12A in detail.

[TABLE OF CONTENT]
12A Registration
What are the benefits of Registration under Section 12A?
What is the Registration Process for Section 12A of Income Tax?
80 Registration
What are the benefits of Registration under Section 80G?
What is the Registration Process for Section 80G of Income Tax?
The issue of a certificate under Section 80G of the Income Tax Act
How to Register an NGO?

12A Registration

12A registration is an exemption taken by most trusts at one time, including incorporation after the exemption from income tax inclusion. Section 8 Companies, trusts and NGOs that have 12A registration enjoy an exemption from paying income tax on the surplus income of the Trust or NGO. Income tax exemption is available to all non-profit or non-governmental organizations. Therefore, all trusts, NGOs and other non-profit organizations should know Section 12A of the Income Tax Act and get it soon after incorporating the trust or NGO. In this article, we look at the process of obtaining 12A registration in India.

Now that we’ve included 80G registration, we’ll discuss 12A registration and the 12A registration process.

12A is exempt from paying income tax based on registration, trusts, NGOs, and other Section 8 companies. NGOs are organizations for charitable and non-profit activities. However, they have income, and if not registered under Section 12A of the Income Tax Act, they will have to pay tax as usual rates. Section 12A of the IT Act, 1962 does not separate between charitable & religious trusts. Hence the 12A registration applies to both characters of organizations.

What are the Benefits of Registration under Section 12A?

  • Income will be exempted from taxation.
  • An organisation registered under section 12A becomes eligible to receive government, Abroad and various private sector grants.
  • Benefits of FCRA Registration.
  • Organizations registered under 12A are also eligible for availing benefits under section 80G.

What is the Registration Process for Section 12A of Income Tax?

Eligibility:

  • Charitable Trusts, Religious Trusts, Societies, and Section 8 Companies
  • Not applicable to the Private or Family Trust.

Documents

Here we have mentioned the essential documents required for 12A Registration:

  • Documental confirmation of the creation of the Trust or NGO {Trust Deed of a Trust; Registration Certificate and MOA of a society}
  • Section 8 companies require to submit a certificate of incorporation and copies of MoA and AoA of the company.
  • Form 10A.
  • Three-year bank account statement of the Trust.
  • PAN of the organization.

Process:

It is a one-time registration process. Before applying for an exemption certificate under section 12A, the NGO shall get it’s NGO registered under the Income Tax.

  • The application shall be done in Form 10A to the Income Tax Commissioner.
  • The application shall contain the following documents:
    • List of name, address and Pan details of the trustees/managers;
    • A certified true copy of the instrument (registration certificate) under which the trust/institution was created/established;
    • A certified true copy of the document (Trust deed/MOA and AOA) which is evidence of such institution/trust creation;
    • Copy of PAN card of NGO.

Section 12A and 80G Registration (Package Offered)

80 Registration

80G Registration under Section 80G of the Income Tax Act provides benefits to the donor of an NGO. The donor gets financial benefits in his taxable amount of their income. The Income Tax Department issued the 80G certificate to a non-governmental organization (NGO), a charitable trust, or a section 8 company. The Income Tax Department issued the 80G certificate to an NGO, a charitable trust, or a section 8 company. The 80G certificate is given to support such non-profit organizations to donate money. In addition, the donor receives a tax rebate of 50% on donating to such an organization, as they become eligible to withdraw such amount from their gross total income. Additionally, the donor will have to attach a stamped receipt of the donation made to avail the exemption. Such receipt should include the name of the donor, donation date, and PAN of the organization.

What are the Benefits of Registration under Section 80G?

  • A donor can avail of deduction from their taxable income.
  • Attracts the donor to make a donation.
  • Getting an 80G Registration also facilitates seeking foreign contributions.
  • Only an NGO with both 12A and 80G registration is eligible for government funding.
  • As a society by law, 80G registration gives your NGO a promising prospect, enhancing its goodwill and the confidence of those associated with your brand.

What is the Registration Process for Section 80G of Income Tax?

Eligibility:

  • Donation made to charities prescribed under category 80G.
  • The NGO shall be duly registered under the Act.
  • Following are the non-eligible for registration under 80G Certification:
    1. The charities with a religious or business angle.
    2. Nonseparation of Business and Charity account if the charity is involved in any business which does not account for donation alone.
    3. Tax benefits are not available to a donor who is donating to NGO which is not registered under 80G or funding for a political party or gifts made to trusts operating outside India.

Documents

Here we have mentioned the required documents for 80G registration; let’s have a look.

  • MoA and Registration certificate in case of Section 8 companies and Societies and a Trust Deed in case of a Trust
  • No objection certificate from the owner of the property where the registered office of the Institution is situated
  • Form 10G
  • A copy of the PAN of the NGO
  • Copy of Utility Bills such as Electricity bill, water bill or House Tax Receipt
  • A list of the donors along with their address and PAN
  • Documents related to income tax returns and the book of accounts of the past 3 years
  • The list of the welfare activities staying carried out and the progress report of the last 3 years
  • The detailed list of the Board of Trustees and the original RC, MoA, or Trust Deed.

Process:

The prior requirement for getting registration under section 80G is obtained registration under Section 12A.

80G Registration Procedure Consists Of The Following Steps:

  • Apply for an 80G certificate to the Commissioner of Income Tax (Exemption) within the jurisdictional area of the entity along with the required documents.
  • The Income Tax department does an on-premise inspection after the form, and the required documents for 80G registration are submitted.
  • However, the Income Tax Officials might ask for additional documents or evidence if they seem unfit or if they feel anything is missing.
  • Upon satisfactory verification of documents and the office of the NGO, an 80G certificate is granted to the institution by the Commissioner.

Section 12A and 80G Registration (Work Procedure)

The issue of a certificate under Section 80G of the Income Tax Act:

On receipt of an application, the Commissioner Scrutinize and may request further documents or information. After the satisfaction of an application, the commissioner may pass an order in writing registering the Trust or Institution under Section 80G of the Income Tax Act. On non-satisfaction of an application, the commissioner may deny the application of an NGO. To avail of the deduction, the payment shall be made as defined under the law.

The registration procedure may take time up to 3 to 4 months.

How to Register an NGO?

The process of registration of an NGO in India is done in three ways. Or we can also say that NGOs can be registered in any of the three Acts. Let us know what these three acts are?

  • Trust Act
  • Society Act
  • Companies Act

Trust Act

There are Trust Acts in various states of India, but if a state does not have a Trust Act, then the 1882 Trust Act applies in that state. It is necessary to have at least two trustees under this act. To register an NGO under this Act, you have to apply to the charity commissioner or registrar office. To register an NGO under the Trust Act, you need a document called a deed.

Society Act

NGOs are registered as societies, but in Maharashtra, NGOs can be registered as trustees in some states, such as the Societies Act. Registration under the Act requires a Memorandum of Association and Rules & Regulations document; this document is essential. A minimum of 7 members is needed to create this document.,

Section 8 Company Act

MOA & AOA and regulation documents are needed for the registration of an NGO under the Companies Act. No stamp paper of some kind is required to build this document; a minimum of three members are required to create this document.

Frequently Asked Questions

How do I register for a 12A certificate?

To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application should compulsorily be made in the online mode. The application shall be addressed to the Commissioner of Income Tax along with the necessary documents.

How can I get registration under 80G?

Process of Obtaining 80G Registration
> Registration Certificate.
> MOA /Trust Deed.
> NOC from the proprietor of the land where the registered office is situated.
> Copy of the Pan Card of the Trust/Institution.
> Copy of electricity bill, house tax receipt, or water bill.
> Proof of welfare activities pursued. To know more, read the above article.

What are 12A and 80G registration?

80G Registration comes under Section 80G of the Income Tax Act and provides benefits to the donor of an NGO. In contrast, Section 12A Registration will assist an NGO to get an organization income exempted from Tax. Both 80G Registration and 12A Registration applies only to NGO’s and charitable organizations.

Who can apply for an 80G certificate?

A non-profit organization or non-governmental organization (NGO), a charitable trust or a Section 8 Company can apply for 80G registration and obtain certification under section 12A. Both certificates can be used together, or they can also be done separately.

Is DARPA ID mandatory for 12A registration?

If you want to raise funding from Government departments, it is mandatory to register with the NGO Darpan portal and, after filing the form, get their Darpan ID. In the initial phase, it is optional to mention Darpan ID while filing FCRA Registration Form.

What does the section 80G Certificate exactly mean?

The term “Section 80G Certificate” denotes the certificate issued by the Income Tax Department to the NGO, Section 8 Company, or Trust.

2 thoughts on “How to Register 12A and 80G Certificate to our NGO?”

    • Hey dear,
      Please read the above article and check the complete terms and conditions and document required, then apply for 12a and 80g.

      Reply

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