NGO Feed

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

How to Register 12A and 80G Certificate

How to Register 12A and 80G Certificate

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 purpose of this post is that non-governmental organizations will tell the owners in simple terms.

If you are associated with an NGO, you are the manager of its fund or the proud founder of a large donor. This article sheds light on why NGO registration under 12A and 80G is available in India and is important 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 received by most trusts at one time, including incorporation after the exemption from the inclusion of income tax. 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 non-governmental organizations. Therefore, all trusts, NGOs and other non-profit organizations should be aware of 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 covered 80G registration, we’ll discuss 12A registration and 12A registration process.

12A is exempt from paying income tax on the basis of registration, trusts and NGOs and other Section 8 companies. NGOs are basically 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 per normal rates. Section 12A of the IT Act, 1962 does not differentiate between charitable and religious trusts. Therefore the 12A registration applies to both types of organizations.

What are the benefits of Registration under Section 12A?

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

Eligibility:

Documents

The following documents are required for 12A Registration:

Process:

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

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 80G certificate is issued by the Income Tax Department to a non-governmental organization (NGO), a charitable trust, or a section 8 company. The 80G certificate is given to encourage such non-profit organizations to donate money. In addition, the donor gets 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, to avail of the exemption, the donor will have to attach a stamped receipt of the donation made. Such receipt should contain the name of the donor, date of donation and PAN of the organization.

What are the benefits of Registration under Section 80G?

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

Eligibility:

Documents

The following documents are required for 80G registration is as follows:

Process:

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

80G Registration Procedure Consists Of The Following Steps:

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 ask additional documents or information. After satisfaction of an application, the Commissioner may pass an order in writing registering the Trust/Institution under Section 80G of Income Tax Act. On non-satisfaction of an application, the commissioner may reject the application of an NGO. To avail the deduction the payment shall be made as specified under the law.

The registration process may take time up to 3 to 4 months. The Registration done once is valid for 5 Years.

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 are these three acts?

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

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

Section 8 Company Act

Memorandum and articles of association and regulation document are required for registration of an NGO under the Companies Act. No stamp paper of any kind is required to create this document, a minimum of three members are required to create this document. In this act, the NGO is registered under the Companies Act.

If you liked our post, then please tell us by commenting, so that we can bring more such posts for you if you have any problem in How to Make NGO, then we will try to solve your problem.

Best of Luck !!!

Exit mobile version