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80G & 12A Registration

Apply for Your 80G & 12A Registration from Your Place Quickly and Easily.

What is 80G & 12A Registration?

Income of an organization is exempted from Income Tax if an NGO has 12AB registration. If an organization has obtained certification under section 80G of Income Tax Act, then donors of that NGO can claim exemption from Income Tax. Application for registration under section 12AB and 80G can be applied just after the registration of NGO.

Application for registration under 80G and 12AB can be applied together or it can be applied separately. If an organization wants to apply for both registrations separately, then application for registration u/s 12A would be applied first. Getting 12A registration is mandatory for application of registration u/s 80G of Income Tax Act, 1961.

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80G & 12A Registration

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Benefits of the 12A Certificate for NGOs


  • The income of an NGO shall be deemed exempt from taxes.
  • NGOs will become eligible to apply for grants from any domestic and international governmental agency.
  • Furthermore, NGOs can also avail the benefits under FCRA registration.

Note – When registration is granted to an NGO under Section 12A, it does not mean that Section 80G approval has also been given. Further, registration under Section 12A does not imply simultaneous approval under Section 80G well. It has to be applied for separately.


Note – When registration is granted to an NGO under Section 12A, it does not mean that Section 80G approval has also been given. Further, registration under Section 12A does not imply simultaneous approval under Section 80G well. It has to be applied for separately.

Benefits of 80G Registration


  • The 80G certificate not only provides tax benefits to the donor but also the not for profit organization.
  • The organization also gets tax relief benefits from the government.
  • The organization can get up to 10% tax exemption benefit on the gross income generated through donations and funds.
  • The main role of the 80G certificate is to give benefit to the donors and help them to get a 10-50% tax exemption.

Procedure of Registration u/s 12AB

Application for 12AB registration is made in Form 10A which is prescribed in Rule 17A of the Income Tax Act, 1962. It has to be filed with proper documents to Jurisdictional Principal Commissioner or Income Tax Comissioner (Exemptions).

1

On receiving the application for registration, the Commissioner verifies the documents and genuineness of the NGO activities. He may call for additional documents and other information which he considers important or necessary.

2

After verification, the Commissioner passes an order in writing for the grant of 12AB Registration. If the Commissioner is not satisfied, he will reject the application, after which the applicant is provided a fair chance to be heard.

3

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Step 1 :
Fill our Registration form.

Step 2 :
Expert will call you and receive all the necessary documents.

Step 3 :
Our expert will start the drafting drafting requirement.

Step 4 :
Expert will process application.

Step 5 :
You will receive confirmation on mail.

Procedure of Registration u/s 80G

Application for 80G registration is made in Form 10G. It has to be filed with proper documents to Jurisdictional Principal Commissioner or Income Tax Comissioner (Exemptions).

1

On receiving the application for registration, the Commissioner verifies the documents and genuineness of the NGO activities. He may call for additional documents and other information which he considers important or necessary.

2

After verification, the Commissioner passes an order in writing for the grant of 80G Registration. If the Commissioner is not satisfied, he will reject the application, after which the applicant is provided a fair chance to be heard.

3

Documents Required for the 80G Registration


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

  • 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
  • The documents related to Income Tax Returns and the Book of Accounts of the past three years
  • The list of the welfare activities being carried out & the progress report of the last three years
  • A detailed list of the Board of Trustees
  • Original RC, MoA, or Trust Deed.

Documents Required for 12A Registration


The following documents are required for 12A registration:

  • Documental evidence of the creation of the Trust or NGO {Trust Deed of a Trust; Registration Certificate and Memorandum of Association {MOA} of a society}
  • Section 8 companies need 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

Overview of 80G and 12A Registrations

80G and 12A registrations apply only to NGOs and Charitable Organizations if they fulfil 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.

An NGO Must Apply For 12A And 80G Registration Immediately After Its Incorporation.

Classification of Deduction Under Section 80G

Donations with:

  • 100% deduction (subject to 10% of adjusted gross total income): In this category, eligibility for deductions of 100% of the donation is applicable only up to 10% of the donor’s adjusted gross total income.
  • 100% deduction (without any qualifying limit): Donations made under this category enjoy 100% tax deduction and are not subject to any qualification limit being met. Moreover, for instance, donations made to: 
    • National Defence Fund set up by the Central Government
    • Prime Minister’s National Relief Fund
    • National Children’s Fund
    • National/State Blood Transfusion Council.
  • 50% deduction (subject to 10% of adjusted gross total income): In this category, the eligibility for deductions of 50% of the donation is applicable only up to 10% of the donor’s adjusted gross total income.
  • Donations with 50% deduction (without any qualifying limit): Donations made in this category qualify for a 50% deduction. For instance, donations made to:
    • Prime Minister’s Drought Relief Fund 
    • Jawaharlal Nehru Memorial Fund
    • National Children’s Fund
    • Indira Gandhi Memorial Fund.

Conclusion:- The objective of the 80G certificate is to encourage more donors and more donations to come to such organizations. The benefit that a donor avails by donating to the organizations with 80G and NGO Registration is that he gets a tax exemption of up to 50% of his donation. The donor is allowed to deduct these donations from their Gross Total Income.

FAQ

   For how long will the registration granted under section 12AB be valid?
Where the trusts or institutions are already having registration u/s 12AA, they shall apply for registration u/s 12AB, latest by 30-06-2021 in Form 10A and the validity of said registration shall be for a period of five years. However, in the case of new registration, the same would be granted a provisional registration, which shall be valid for a period of three years.
   Who shall verify the Form 10A/10AB?
Form 10A/10AB shall be verified by the one who is allowed to verify the return of income of trust or institution u/s 140 of the taxation Act.

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