NGOs need 12A and 80G registrations to obtain income tax exemptions and offer tax deductions to donors, making donations more attractive. These registrations enhance the NGO’s credibility, increase funding opportunities, ensure eligibility for various grants, and improve operational efficiency by allowing more resources to be dedicated to charitable activities.
What is 12A and 80G Registrations?
12A and 80G registrations are certifications provided by the Income Tax Department of India to NGOs, offering significant benefits. The 12A registration exempts NGOs from paying income tax on their surplus income, allowing them to utilize more funds for their charitable purposes.
12A Registration: 12A registration is a certification provided by the Income Tax Department of India to NGOs, exempting them from paying income tax on surplus income. This allows NGOs to utilize more funds for charitable purposes. Any trust, society, or non-profit company can apply by submitting necessary documents to the department.
80G Registrations: 80G registration is issued by the Income Tax Department of India to NGOs already registered under 12A. It enables donors to claim a deduction of 50% of their donation amount from their taxable income, encouraging more donations. NGOs apply for 80G certification by submitting required documents to the department.
Documents required for 12A and 80G registration
- Organization must be a registered NGO
- Aadhar Card and Pan Card of Two member of your NGO
- NGO Certificate
- NGO PAN Card
- E-mail ID
- Phone Number
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Is 80G and 12A Registrations Mandatory?
No, 80G & 12A registration is not mandatory for any NGO, but there are a lot of advantages for an NGO to have these certifications, as mentioned below:
80G Registration: A Benefit for Donors
80G registration is a certification that allows donors to claim tax deductions on their donations to registered NGOs and charitable institutions. Donors who contribute to organizations with 80G certification can avail tax benefits under the Income Tax Act, 1961. It incentivizes philanthropic giving and encourages individuals and corporates to support social causes.
12A Registration: Exemption from Income Tax
12A registration grants NGOs and charitable institutions exemption from paying income tax on their income. This enables these organizations to utilize their funds more effectively for their social and charitable objectives. It ensures that resources are directed towards the betterment of society rather than tax liabilities.
Benefits of 12A & 80G Registration
- Credibility and Trust: Organizations with 80G and 12A registrations enjoy enhanced credibility and trust among donors, partners, and beneficiaries.
- Increased Funding Opportunities: Registered NGOs have access to a broader range of funding opportunities. They are eligible for government grants, corporate social responsibility (CSR) funding, and philanthropic donations.
- Tax Benefits for Donors: Individuals and corporates who donate to NGOs with 80G certification can claim deductions on their taxable income, reducing their tax liabilities.
- Efficient Resource Allocation: 12A registration allows organizations to allocate their funds more efficiently for the betterment of society.
12a and 80g registration process online
To get 12A and 80G registration online in India, follow these steps:
- Prepare Documents: Gather all necessary documents such as the trust deed, registration certificate, PAN card of the NGO, financial statements, and details of activities.
- Visit the Income Tax e-Filing Portal: Go to the official Income Tax Department e-Filing portal (https://www.incometaxindiaefiling.gov.in).
- Register the NGO: If not already registered, register the NGO on the e-Filing portal by selecting “New Registration” and choosing “Others” under the category.
- Login: Use the credentials to log in to the e-Filing portal.
- Navigate to e-Forms: Go to the “e-File” tab and select “Income Tax Forms” under the “Prepare and Submit Online” section.
- Select Form 10A: Choose Form 10A for 12A registration and Form 10G for 80G registration.
- Fill the Form: Fill in the required details in Form 10A and 10G, attaching the necessary documents such as:
- PAN of the NGO
- Registration certificate
- Trust deed or MOA
- Financial statements
- Details of activities
- Submit the Form: After completing the forms, submit them online. An acknowledgement receipt will be generated.
- Verification: The application will be verified by the Income Tax Department. They may ask for additional documents or information if needed.
- Inspection: Sometimes, the Income Tax authorities may inspect the premises of the NGO for verification purposes.
- Approval: Once verified, the Income Tax Department will issue the 12A and 80G certificates.
- Download Certificates: After approval, you can download the certificates from the e-Filing portal.
By following these steps, NGOs can obtain 12A and 80G registration online, enabling them to benefit from tax exemptions and attract more donations.
12a and 80g registration fees
The total fees for 12A & 80G registration on Rs 7999 only vary based on type of organization. Application will be files with in 4-5 days and Jurisdictional Principal Commissioner takes upto 20-30 days to verify and approve the registration after that you can download the certificate from your login panel.
Top 10 Advantages of 80G and 12A Registrations for an NGO
- Expertise and Experience: NGOs that specialize in 12A and 80G registrations have extensive experience and expertise in navigating the intricacies of the application process. They are well-versed in the documentation requirements, procedural nuances, and expectations of the relevant authorities, ensuring a smoother and more efficient registration process.
- Time Efficiency: Partnering NGO Partner can significantly expedite the registration process. We are familiar with the procedures and can handle the paperwork efficiently, reducing the time it takes to obtain the 12A and 80G certificates.
- Compliance Assurance: NGO Partner as your online registration company ensures that all documentation is accurate and compliant with the regulatory requirements. This minimizes the risk of errors or discrepancies that could lead to delays or rejections in the registration process.
- Transparent Communication: NGO partners maintain transparent communication with their clients throughout the registration process. They provide regular updates on the status of the application, ensuring that clients are well-informed and aware of the progress.
- Reduced Administrative Burden: Handling the 12A and 80G registration process can be time-consuming and administratively burdensome. NGO Partner allows organizations to focus their resources and efforts on their core charitable activities while the NGO manages the registration process.
- Networking and Resources: NGO Partner have valuable networks and resources that can benefit the organization beyond registration. We have connections with potential donors, funding sources, or other NGOs that can lead to collaborative opportunities.
- Risk Mitigation: Working with an NGO partner reduces the risk of mistakes or oversights during the registration process. Their experience and attention to detail can help organizations avoid potential pitfalls.
- Cost-Effective: While there is a fee associated with partnering with NGO Partner for registration services, the benefits in terms of time saved, reduced errors, and increased efficiency can often outweigh the costs.
- Long-Term Support: NGO partners offer ongoing support beyond registration, assisting organizations with compliance, reporting, and other matters related to maintaining their 12A and 80G status.
- Focus on Mission: Taking services from NGO partner for 12A and 80G registration allows organizations to stay focused on their mission and objectives, knowing that the registration process is in capable hands.
Empowering Charitable Initiatives
Obtaining 80G and 12A registrations is a significant milestone for NGOs and charitable institutions in Delhi and across India. These registrations not only enhance an organization’s credibility but also provide financial benefits to both the organization and its donors. By partnering with a registration company in Delhi, NGOs can navigate the registration process smoothly and focus their efforts on creating a positive impact on society.
The importance of 80G and 12A registrations cannot be overstated for organizations committed to charitable and philanthropic causes. With the right guidance and support, these registrations can empower charitable initiatives to flourish and make a meaningful difference in the communities they serve.
Your 80G/12A Registration company NGO Partner is dedicated to simplifying the process of obtaining 80G and 12A registrations in Delhi. Contact us today to streamline your registration and embark on a journey of positive social change.
Here are some other essential documents every NGO should have. You can have a look at the links below:
No, 12A registration is not compulsory for NGOs in India, but it is advisable. Obtaining 12A registration under the Income Tax Act allows NGOs to enjoy tax exemptions on their income, making them eligible for various benefits. While not mandatory, it enhances the financial viability and credibility of the organization.
To check your 12A registration, contact the Income Tax Department, providing your PAN or TAN. For 80G registration, visit the Income Tax Department’s e-filing portal, entering your PAN and acknowledgment number. Utilize official channels or consult tax authorities for accurate and up-to-date information on your registration status.
To register for 12A online, submit Form 10A on the Income Tax Department’s e-filing portal. Provide details about the NGO’s objectives, activities, and financials. Attach required documents, such as the trust deed or memorandum. After scrutiny, the department will issue the 12A registration certificate if approved.
12A registration offers several benefits to NGOs in India:
- Tax Exemption
- Eligibility for Grants
- Attracts Donors
- Financial Viability
