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.

Read Also This – Understanding About 80G/12A Registration

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

The registration of trust deeds or society registering certification

Self-certified of the copies with regard to auditing of the annual accounting( this is for the preceding three of financial years)

NGO ID( receipt of grants)

FCRA ID( while receiving foreign donations)

Self-certification copy of certificate taken under 12A & 80G

Applicant’s activities note

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:

Form 10A

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.

Registration Certification

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

Constitution framework

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

Financial statements auditing

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.

Charitable activities statement

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

The NPO must submit these documents to the Income Tax Department along with the application for 12A registration. The income taxation authorities will be reviewing all your paperowork, form. Once you meet the criteria to apply for the 12A certificate, they will be rendering you the document.

The 12A registration is holding validity for 5 years of time

The NPO must renew the certificate every five years.

NOC( No Objection Certification)

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:

Form 10G

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

Certificate for registration

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

Constitution

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

Financial statements audit

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

Charitable activities statements

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

NOC( No Objection Certification)

This is the certification that is taken from the property’s owner and it will have the location of the registered office of the trust, illustrating that there is no objection to the NGOs having the registration under 80G.

Thus, NGOs must be in the position to renew the licensing after every 5 years of the duration

Also, there are few the additional of things which are required to be kept in mind with respect to the 80 G licensing

The NGO must work as the nonprofit entity

The activities of the organization must be of a charitable nature

There must be registration of NGOs with Governmental authorities

There must be the constitution of the NGO

The audited financial statement must be presented by charitable institutions

Also, the NGO must seek nonobjection certification from the property owner, where there is the location of the registration office

Read Also This – A Comprehensive Guide On Everything You Need To Know About 80G 12A Registration

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:

The application needs to be filled in form 10A along with the income tax commissioner( exemption)

There needs to be submission of the paperwork

After the submission of the paperwork, there will be a review of the application the commissioner, and they may ask for the additional of information

Under conditions when everything is found to be quite satisfactory, make sure to complete registration, otherwise, there will be a rejection of the same.

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

Any NGO looking forward to registering as per section 80G should be in the position of working solely for the charitable of goals

The application is required to be filled by entering all details within form 10A through the income tax commissioner

Submission of the crucial documentation

After submitting the paperwork, reviewing of the documents will be done by the concerned authorities. So, in case it is needed, the officer may be asking for additional of paperwork/ information, and within the mentioned of time frame applicant needs to submit the same to avoid rejection.

What are advantages of seeking a section 80G certificate?

The 80G licensing will enhance the prospects along with the organization’s credibility

Donors will be in the position of seeking the advantages of less taxable of income

Possibility of attracting more of the donors

Eligibility of seeking Governmental funding

NGO owners will be seeking foreign contributions without any sort of hassle

Read Also This – Overview about 80G/12A Registration & how it is done

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.