Understanding About 80G/12A Registration & How It Helps NGOs?

The charitable institutions & NGOs are holding the eligibility for some of the taxation exemptions and seeking advantages in the country. There are exemptions as well as advantages which are dealt with under section 12A or 12AA & 80G, Income Tax Act in the year 1961. Thus, the institutions will be seeking the advantages under section 12A & 80G and are required to carry out the revalidating of the registrations under two of the sections before the year 2020 to continue to seek the benefits.

Is 180G/12A registration mandatory for all charitable institutions?

There are many charitable institutions or non governmental organizations that are required to reapply to the concerned taxatio authorities. This is meant for the revalidation of prevailing registering. So, the NGOs will not be capable of claiming the advantages extended as per the 12A & 80G deductions and this is without revalidaton. So, this procedure of revalidation will be focussing upon whether all the institution/ trust charitable work or NGO is genuine or not.

How NGOs can revalidate their current 12A & 80G Registration?

The prevailing religious/ charitable institutions/NGOs are required to reply to the income taxation authorities to carry out the revalidating of the current registrations. The charitable institutions/ NGOs are not capable of claiming the advantages that are extended under 12A & 80G deductions without conducting the revalidating. So, this procedure of revalidation will focus on all institution’s charitable activities/trusts or NGOs, whether it is genuine or not.

The revalidation is crucial owing to the transformation which is made through the amendment of the Finance Act in the year 2020. This mandated the charitable institutions that are being registered through sections 12A/12AA & under 80G, the income tax act introduced in the year 1961. This needs to be reapplied online for the purpose of approval or registration by 2020. Also, the provision for the amendment was introduced on June 1, 2020.

Is there any amendment to 80G & 12A regulation?

Owing to the COVID-19 pandemic condition, the CBDT, Central Board of Direct Taxes, will be deferring the start date to the year 2020. Also, the charitable institutions/ NGOs are required to reply for the registration by the end of the year 2020. Upon, march 2021, the CBDT will be notifying the income tax regulations which will state the process for the fresh of the registrations along with the listing of the documentation which is needed for the charitable trusts and NGOs which are registered under 12A/12AA/80G section.

The Income tax regulations, the 6th amendment introduced in the year 2021, came into existence in the year 2021. So, the institutions as well as the trusts having the existing registration under section 12A/12AA or 80G will be applying for the purpose of the fresh of the registration, and this is within 3 months according to the 6th amendment of income tax regulations, in year 2021.

Who all are eligible for 80G & 12A Registration?

The 80G & 12A registration are holding applicability for NGOs as well as the charitable trust

Drafting application as per section 12 A licensing

Drafting application for exemption certification as per 80G

Approval from income tax commissioner

Following up with taxation authorities from start to end

More than 1000+ CA/CS and other professionals working in PAN India

Registering as per section 12A

What benefits NGO can avail from 12A certifications?

The NGO income will be exempted from taxation

The NGOs will be holding the eligibility in order to apply for the grants for any of the domestic as well as the international Governmental agencies.

Also, the NGOs will be seeking the advantages concerning the FCRA registration

Applying for 80G certificate

Make registration under NGO and this is as per section 80G, Income tax regulations.

The main benefit of NGO registration is that the donors to your social cause will not be liable for taxes when they donate to your NGO.

Likewise, this means that donors of a Section 80G registered NGO are entitled to reduce the amount they donate to the NGO from their total taxable income.

Also, another benefit of registering with the NGO is that donors to social causes will not be holding any of the liability concerning taxation when donations are being made to the NGO. Also, this will entail that all the donors who will be having the registration as per section 80G are entitled to a reduction in the money that they are going to donate to the NGO, from the entire taxable income. Thus, this will ensure the registration of the NGO according to the that the donor of the social cause is not holding any of the liability about the taxation

Benefits of 80G certification for NGO

According to the by-laws of the society, the 80G certifications will make the NGO quite a promising prospect for improving the credibility of the organization along with the reliability which is associated with the same.

Also, an 80G certificate will enable the donor to not just simply feel good about themselves but also make a donation for the specific cause. Also for incentivizing everything through the taxation benefit of reducing the taxable income

Also, the NGO registered under 12A & 80G will be holding the eligibility for seeking Government funding.

Seeking 80G registration will also assist in seeking foreign contributions.

Any donations which are made more than Rs 20000 is not liable for deductions from the total of the taxable income. So, any of donations that exceed INR 2000 is required to be made in any of the mode except cash payment for qualifying as the deduction under section 80G.

Important consideration for donors

In case income is ten lakhs and you will be donating the same amount to the registered of NGO which is being subjected to the qualifying of limit, you would not be able to claim your 10 Lakhs. However, 100% of all the donation, or 50% of the donation, will be liable as a deduction. However, the deduction would be limited to 1 lakh and this is 10% of the overall income.

Categorization of deduction under section 80G

100% deductions

(This is subjected to 1/10th of the adjusted of gross total income)
So, in this particular of category, the eligibility for deductions will be 100% donations and this is holding applicability to 10% of the adjusted gross total income of donors.

50% deductions

In this particular of category, the deductions eligibility is 50% of the donations and this is applicable up to 10% of the adjustable gross total income of the donors.

Complete deductions( with no qualification limit)

The donations that are made in this class will be enjoying the completion of the tax deductions and this will not be subjected to any of the qualification limit which is being met. This will include the example of the donations being made:

National defence funding set up by Governmental authorities

National relief fund by Prime Minister

National or State Blood Transfusion Council

What is filing 10A form?

Form 10A serves as the crucial document that is required to be filed through the entities that are intended to register according to section 12A. The application procedure for the section 12A registration along with the form 10A filing needs to be streamlined. Also, there is a need of the digital signature for the authentication for processing to the online filing. When you apply for registration according to section 12 A, it is compulsory to affix the digital signature of the founder/ author of the concerned trust.

Also, the registration application is filled through the use of form 10A and needs to be submitted online along with being addressed to an official at the income tax department. Apart from the filing of the application, the requisite of documentation needs to be included as well for the completion of the registration procedure in a successful manner. The digital as well as online process will ensure the most streamlined as well as efficient of procedure for all the entities that are looking forward to the 80G/12A registration and this promotes the ease along with the convenience of complying with the registration requirements.

Steps for 80G/12A Registration

Step 1

The first step will involve filling application form which needs to be submitted to the exemption section of the income tax department.

Step 2

In the next step, NGO would receive the notification for clarification from the Department of Income Tax within 2 to 3 months of the application

Step 3

Then there will be a reply of the notice which needs to be submitted through the legal consultant along with the submission of each & every of crucial paperwork to the Department of Income Tax.

Step 4

The representative from the company would be personally visiting the income tax department to follow up on the case on the applicant association’s behalf.

Step 5

In the last step, there will be the issuance of the exemption certification

Hire 80G/12A Registration & gain recognition for your NGO

The 80G /12A registration experts provide valuable advice and insights to ensure a smooth and hassle-free procedure. Owing to the team of legal and other professionals, there will be expert guidance extended during each & every step of the way. So, from a thorough understanding of the need to prepare the necessary paperwork, the company will be ensuring all the crucial aspects with respect to the registration which is handled efficiently. Owing to the most extensive of the knowledge & process, you will be capable of navigating through all the complexities. Also, by entrusting 80G 12 A registration procedure to the company, you will be capable of taking care of all the legal formalities. So, the 80G/ 12 A registration help providers are the most trusted as well as reliable partners whenever it comes to seeking help with registration. Through expertise as well as an unwavering commitment towards consumer satisfaction, the legal consultants will be providing the most comprehensive of support throughout the procedure. The members will be providing absolute clarity about the service processes.

So, make sure to track the status of the service life and this will bring clarity as well as reliability within the system.