A Comprehensive Guide On Everything You Need To Know About 80G 12A Registration

The NGO entity has been served for the non-profit as well as the humanitarian purpose and this is in the form of the charitable trust or society or the section 8 of the company. Once such types of entities are registered in a formal manner, then it will seek approval from the bunch of the tax exemptions and advantages along with the reliefs, and tax deductions from the donors. So, for this purpose, 12A as well as the 80G registrations are compulsory. Otherwise, any sort of income that the NGO is earning for example service, production, or donation will be taken in the form of the normal taxable income. And this is without consideration for the purpose of this type of income. The NGOs having 12A as well as the 80G certifications will be seeking the upgraded of commercial value in comparison to the counterparts and this is without any sort of certifications.

Is NGO exempted from tax?

The NGO has the provision of availing the income tax exemption. This is possible through getting registered as well as complying with some specific formalities. However, such type of registration does not extend any sort of advantage to the individuals who are making the donations. So, the Income Tax Act will have provisions for offering benefits to all donors. Thus, non-governmental organizations must be in a condition of availing such provisions to attract all potential of donors. One of the examples is the section 80G.

The NGO can get the provision of seeking the exemption from the income tax. This is having the possibility of getting registered along with adhering to all the formalities as per the Government. Thus, any NGO must be able to fulfill and meet all the conditions in order to attract the potential of the donors.

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

Overview about 80G certification

The 80G certification is issued from the Income tax department to the NGO, which is non- Non-governmental organization that includes the charitable trust or section 8 of the company regulations. The 80G licensing is granted to encourage the donors to donate the funds into the non-profit entities. Furthermore, the donor will be seeking a tax exemption of around 50% when they are making the donations to such entities, and they will be holding the eligibility for deducting such money from the Gross total income. Also, to avail of the exemption, the donor is required to attach the stamped receipt of whatever of the donations that are being made. So, such types of donations will need the receipt and must incorporate the name of the donor, the donation date as well as the organization’s PAN.

About 12A Registration

Brief Overview about 12A Registration

The NGOs are serving as the entities that are involved in the charitable as well as the non profitable of activities. But they are earning income and are also required to make the payment of the taxes according to the normal rates when the registration is not done under section 12A( Income Tax Act).

Now, there is a brief description of 12A registration, Let’s know about the 12A section. And what is the way to seek registration under section 12A, Income Tax Act introduced within the year 1961? As far as section 12A is concerned, there is a single-time exemption that is being rendered to the trusts, NGOs as well as enclosed within section 8 companies. So, businesses will be holding the registration under section 12A and this is exempted from the payment of the taxes on the surplus income.

What all advantages are rendered under 12A & 80G registration?

Greater of capital will be facilitated for the purpose of charitable activities and this is via tax exemption in comparison to the income of NGO.

Funds as well as grants will be permitted from the most recognized of the agencies, the Government as well as international of sources.

There are 12A as well as 80G registered NGOs that will be permitted to accept international funding through exemptions availability according to the Foreign Regulations Act introduced in year 2010.

Attracting a greater number of donors through the expansions of the scope of the fulfillment of the goals of the NGO

Greater of operational exposure as well as the status value whenever the NGO will be seeking registration and obtaining 12A & 80 G Registration

Also, both the 12A as well as the 80G serve as single-time registrations holding validity for a lifetime.

What is eligibility for 80 12A registration?

All the NGOs that are working in the form of the public charitable trust or u/s, companies act, introduced in the year 1956 must be working only for the purpose of the public welfare according to the provision

The donations as per the provision u/s 80G will be facilitated for the exemption of taxations

NGO assets should be utilized solely for charitable purposes

Also, the NGOs should be in the position of maintaining the book of accounts of all expenditures as well as the receipts.

Read Also This – How Can I Get 12A & 80 G Regisration Fast

Under what all conditions, 80G certificate can be cancelled?

Under condition when the NGO will be working as a commercial profit based entity

When NGO runs the promotional or beneficial in terms of religion/ community

Also, no single member of the NgO will be seeking permission to earn commercial profitability based on the earnings as per the operational activities of the NGO. So, under such conditions, any income that is being obtained for such purposes should be kept distinct from the income of the NGO. Also, there should be a separate book of accounts for this type of income

Any sort of misuse under the provision of the 80G certificate can result in its cancellation

What all formalities are needed for seeking 80G 12A registration?

Given below are the most essential of the paperwork needed for 80G/12A:

Step 1

Registration

PAN Card xerox of the Registered applicant NGO

Certification of incorporation, NGO

The trust deed, under the condition of trust establishment or MOA, AOA of company

List of all the welfare activities

What is 12A Registration Process?

Step 1

Verification

The commissioner will be assessing all the details of the application and will also be asking for any sort of additional paperwork or information in case needed. So such type of queries are required to be responded in the proper manner, otherwise, it will lead to the application rejection
Issuing of 12A certification

Step 2

The applicant will be granted 12A registration holding validity for a lifetime for the registered NGO. This is under the condition that the income tax officer get convinced of the purpose as well as the validity of the NGO.

Step 3

There will be legal approval of the NGO having the provision of the lifetime with the tax exemption as per section 12A

80G registration Process

The 80G certificate will be granted according to the regulations 11AA of income tax regulations, 1962

Step 1 : Form filling

10G form filling has to be done as well as signed in the proper way online furnishing all the relevant of paperwork for verifying the returns of income u/s 140 to the principal commissioner whatever is applicable

STEP-2 : Verification

The authorized official will conduct a thorough review of your application and may ask for additional documents/information if required. Such queries should be responded to properly otherwise may lead to rejection of application.

STEP-3 : Issuance of 80G Certificate

After seeking satisfaction with the standard, relevancy along with the authentication of application, NGO will be rendered 80G certification holding validity for lifetime and from the income tax department, India.

STEP-4 : Geeting 80 G certificate

Now, your establishment is a legally approved NGO with the lifetime provision of tax exemption under Section 80G.

The charitable institutions are holding eligibility for some of the tax exemptions along with the other perks in the country. The exemptions along with the benefits will be dealt with under section 12A/ 12AA as well as the 80G, Income Tax Act introduced in the year 1961. So, the institutions will be seeking the benefits under section 12 A as well as the 80 G which needs to revalidate the registrations as per two of the sections before the year 2020 continuing to seek the advantages.

Read Also This – What Is 80g/12a Registration? All About Benefits! Document! Procedure

Hire 80G and 12A Registration experts & seek tax exemption from your NGO

The 80G and 12A Registration certification serve as assistance to the NGO so that they can seek income tax exemption.

This exemption is granted to the NGO as well as to the donors. It is essential to obtain the certification immediately after the incorporation of the NGO. The main objective of 80G/12A Registration is to encourage the donors to contribute to social work and make donations to the organizations having these certifications without the fear of any additional costs.