12A REGISTRATION & 80G REGISTRATION
80G and 12A registrations apply only to NGOs and Charitable Organizations if they fulfill the following conditions:
- They must not have any income generated from a business
- They should either be a charitable trust or a registered society
- Also, such organizations should not be using their assets or income for any other purpose other than making charity
- Furthermore, they must maintain a regular book of accounts in favor of their receipts and expenses
- The trustees or any other body governing the organization should not be involved in deriving any undue benefits from these funds
- They should not be working for the benefit of any particular caste or religion
- Also, in the case of business-related income, the organization should maintain a separate book of accounts. However, the donations received by the NGO must not be used for such businesses. Consultcalive Provides the Best Online Registration services, including 80G and 12A registration online that applies only to NGOs and Charitable Organizations.
An NGO Must Apply For 12A And 80G Registration Immediately After Its Incorporation. What is an 80G Certificate?
- An 80G Certificate is issued by the Income Tax Department to a non-governmental organization (NGO) such as a charitable trust, or a Section 8 Company. The 80G Certificate is granted to encourage the donors to donate funds into such non- profit organizations. Furthermore, the donor gets a tax exemption of 50% when they make donations to such organization, as they become eligible to deduct such amount from their Gross Total Income. Additionally, in order to avail the exemption, the donor needs to attach the stamped receipt of the donation made. Such a receipt must contain the donor’s name, date of donation, and PAN of the organization.
About 12A Registration
- Now that we have covered the 80G Registration, we will know about Section 12A and how to get registered under Section 12A of the Income Tax Act, 1961
- Section 12 A of the Income Tax Act, 1961, is a onetime tax exemption provided to trusts, NGOs and Section 8 Companies. Organizations holding a registration under section 12A are exempted from paying taxes on their surplus income
- NGOs are organizations involved in charitable and non-profit activities. However, they do earn income and they are required to pay tax as per normal rates if not registered under section 12A, Income Tax Act
- Self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be
- Self-certified copy of the documents evidencing adoption or modification of the objects, if any
- Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head);
- NOC from Landlord (where registered office is situated);
- Copy of PAN card of NGO/Trust/Institution
- Electricity Bill / House tax Receipt /Water Bill (photocopy)
- The statement of accounts and balance sheet since the foundation/previous 3 years
- Note on the activities of the trust or institution / Proof of welfare activities pursued
- Progress Report since the foundation of the NGO or for the previous 3 years
- List of contributors along with their address and PAN
- List of governing body of trustees with their contact details
- Description of business carrying out by the institution /trust/fund
- Details of shares, security or other property purchased by or on behalf of the trust from anyinterested person. (if any)
- Whether any part of the income or any property of the association was used or applied in amanner which results directly or indirectly in conferring any benefit, amenity or perquisite
- whether converted into money or not, on any interested person as specified in sub-section (3) ofsection 13? If so, details thereof. (if any)
- Copy of registration granted under section 12A or copy of notification issued under section10(23)or section 10(23C) (if any)
- Period of last approval under 80G, if any. Please enclose a copy of the approval (if any)
- If any change in the aims and objects and the rules and regulations have been made since the
- last approval, the details thereof (if any)
