How NGOs Can Get Tax Exemption Benefits Through 80G/12A Registration?

The 80G as well as the 12 A registration certification will assist the NGOs in getting the income from the tax exemption. So, the exemption will be granted to the non-governmental organizations along with the donors. Also, it is crucial to seek the 80G/12A Registration quickly to encourage the donors to contribute to social work as well as make donations to the businesses who will be having such of the certification and this is without incurring any of the fear of taking additional of the cost.

The 80G licensing will be issued through the income tax department to the NGO(non-governmental organization). This will include charitable trusts or non-governmental organizations. So, this type of certification will be granted to encourage the donors to donate the funding to the nonprofit businesses.

By getting the 12A Registration, the Non Governmental organizations, trusts along with other Section 8 companies will enjoy the exemption from the payment of the income tax. So, non-governmental organizations are meant for charitable as well as non profit activities. But they do are having the income and would need to make the payment of the taxation as per the normal of rates when the registration is not done under section 12A, Income Tax Act. Section 12A, IT Act introduced in the year 1962, will not be putting any distinction between the charitable as well as the religious of the trust.

What is meaning of 12A & 80G registration for NGO?

Section 12 & 80G licensing for NGOs will primarily rely upon the donations for supporting the further functioning. Also, it is of great assistance for claiming all those looking for tax exemptions, with availability for both the donors as well as the recipients. So, non-governmental organizations are required to register under section 80G as well as section 12A, the Income Tax Act.

The whole of process is complex and consumes time and this is also posing a challenge in front of all those who are non-professionals. However, there are recent of transformations that have already made it compulsory for all the NGOs who have already been registered as per section 2 of the re-registration act to enjoy the taxation advantages. Furthermore, whenever the NGO will be seeking CSR funding, then, they need to register by filing Form CSR-1

Revalidation provision as per section 12A & 80G

Duration for section 12A & 80G certification

The overall of procedure may be taking maximum of 3 months, and the application needs to be filled out within 1 week. This is from the date for the documentation submission. So, this will hold the validity of a total 5 years and then need to be renewed after that.

Paperwork needed for section 12 & 80G

What paperwork is specifically needed for 12A certification?

Here are paperwork which are needed for 12A registration in the country and this is enlisted below:

This will include the filling of the application form 10A for the purpose of 12 A certification. So, this needs to be downloaded from the website of the income tax authorities.

This is the registration certification issued by the Governmental authorities to NGO

This is also the documentation that sets out the NPO’s goals, and activities as well as the structuring of the Governance

Also, there are provisions for the NPO’s financial statements for the period of three years and this has already been audited from the chartered accountant.

This is another of statement which will describe the charitable of activities of the NGO in detail

The NGO must be in the position of submitting the paperwork to the Department of income tax as well as the filing of the application for the purpose of 12A certification. So, the income tax authorities will be reviewing the application along with the issuance of the certification, whenever the NGO will be adhering to the eligibility criteria. The 12A registration is holding the validity for a duration of 5 years. Also, the NGO must be in the position of renewing the certification after every 5 years of the duration.

What are paperwork needed for 80G licensing?

The paperwork needed for the 80G certification in the country is listed below:

This is the form that needs to be filled out for the purpose of 80G certificate. So, this needs to be downloaded from the income tax department’s site

This is also the registration certification that will be issued from the Governmental authorities to the NGOs

This is another of the paperwork that will set the NGO goals and activities along with financial governance.

This will include the financial statement of the NGO from the past 3years which has already been audited by the CA

So, this statement will describe all the NGO's charitable activities in detail

NOC( No Objection Certification)

Section 12A, Income Tax Act introduced in 1961

As per section 12, Income Tax Act, 1961,there is the provision of the exemption from income taxation to the charitable trust as well as the institutions. For holding the eligibility, with respect to the exemption under section 12A, the trust/ institution must seek registration, as per section 12A, Income Tax Act.

Section 80 G, Income Tax Act, introduced in year 1961

Section 80G , the income tax act introduced in the year 1961, is extending the deductions from income tax with respect to all the donations that are rendered to the charitable institutions. So, for holding the eligibility for the purpose of the deduction under section 80G, the NGO must be capable of seeking registration as per section 80G, the income tax act introduced in year 1961.

Issuing revalidated registration certification

The authorities will be issuing the revalidation registration certification to the charitable institutions as well as the trusts having registration under section 12A as well as the section 80 G income tax act. So, this revalidated registration certification is holding validity for the duration of 5 years

How seek 12A registration?

Since registration under section 12A is meant for the taxation exemption, and thus entities that have not been registered under this act will not be in the position of enjoying the privileges with respect to the exemption of taxation and would required to pay the taxes just like any of the normal registered company during each & every year. However, before registering under 12A, the charitable entity is required to register according to the Income Tax Act. So, this provision is also available for the trusts.

Here are the steps to apply for the 12A & 80G registration:

How to apply for 80G registration?

According to section 80 G, income tax, the NGO will be seeking the respective of certification, then the donors will be facilitated by the reduction in the donation volume which is made from the total of the total income. And thus, while getting incentivized for making the contribution to certain components of the disposable income for the purpose of good causes

Steps to register according to section 80G

What are advantages of seeking a section 80G certificate?

Streamline 80G/12A Registration with the help of experts

Hire the most trusted ally for seeking 80G/12A registration help. Make sure to recognize the relevance of the registration for the NGOs for acquiring the taxation exemptions along with encouraging greater donations. The company will be extending the swift as well as the straightforward pathway for achieving everything.

So, the team of experts will be ensuring that quite often the procedure will become quite a hassle for the NGO and thus help them to complete the 80G 12A registration completely.