Are you a social entrepreneur, working for a cause and looking for a chance, but still worrisome about the complicated tax implications as well as fundraising, if yes, then look no further than sections 12A & 80g , Income Tax Act provisions. Whether you are managing an NGO, managing funds, or coming under the category of a big-hearted donor, make sure to seek ways to register your NGO in India under 12 A as well as 80 deductions as per the income tax as this is very important for carrying out social work. The Section 80G registration is going to benefit the donors, and Section 12A will assist the NGO in seeking income tax exemption from taxation as per Section 80 A, income tax.

Is it mandatory for NGO to seek 12A & 80G certificate?

The NGO, a Non-Governmental Organization is not a Governmental entity and also doesn’t come under the category of conventional profitable businesses. So, usually, it has been set up by ordinary people, and the non-governmental organization may be funded by Governmental authorities, foundations, businesses, or even private individuals. So, NGOs belong to the diverse category of businesses that are involved in an array of activities. So, this may include the charitable status, while there might be others that are registered for the tax exemption based on the recognition from the social purposes.

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Also, there will be others that may be on fronts with regard to the political, religious as well as various other forms of the groups. In a country like India, there are several privileges that are available to NGOs or charitable trusts about taxation exemption. So, according to the Income Tax Act, section 11, introduced in the year 1961, the NGOs will be seeking several forms of tax exemption benefits with regard to the donation/ income for example:

  • Around 15% of the income or donation comes under the exemption, whether the above income is applicable for the charitable context or not
  • Making voluntary contributions or donations concerning the specified direction that is not forming the component of the trust and is exempted completely
  • The donor of the NGO will be seeking deduction with regard to the donations that are made to the NGO and also, there are several of the others.

    • Who all are eligible for 80G & 12A registration?

    The 80G registration as well as the 12A certification will be holding applicability to the Non Governmental organizations as well as the charitable institutions:

  • The 80G along with 12 A licensing held applicability to NGO along with charitable organizations.
  • Application draft as per section 12A licensing
  • Application draft with regard to exemption certification under 80G
  • Approval from income tax commissioner
  • Follow-ups from taxation authorities from start to end
  • 500+ CA/CS/CMA all across the nation
  • Registering application, under section 12 A

    • How to acquire tax exemption on NGO income?

    The first as well as foremost step to apply for the NGO is to register to gain tax exemption certification. Also, this is coming under category of the section 12A registration. Furthermore, without registering the NGO, there will be a receipt of the NGOs and this will be subjected to the standard of the taxation rates.

    The advantages with regard to the exemption of the applicability to the NGO would not be taken. Registering as per section 12A will assist you in securing the funding from Government/organization abroad. This is owing to the serving the most legitimate documentation of the existence of the NGO as well as the social objectives. You will be able to seek the 12A registration to avail the exemption of taxation even though the NGO is being constituted in terms of trust, society, or nonprofit company.

    What perks seeking 12A registration for NGO provide?

  • The NGO income is exempted from taxation
  • NGOs will be holding eligibility for applying for grants with respect to the domestic/ international Governmental organization
  • Furthermore, the NGOs will be getting the perks in terms of the FCRA registration
  • What perks are provided under 80G registration to NGO?
  • The non-governmental organization should register under an NGO, as per section 80G of the Income Tax Act. So, the main advantage of registering your NGI is that the people who will be making the donations to the special cause will not be held liability for the taxation, whenever they donate to the non-governmental organization.
  • This means the donors as per section 80G 12 A registration will be entitled to the reduction of the money that they will be donating to the NGI with respect to the total of the taxable income.

    • What perks acquiring 80G certificate provide?

    According to the societal bylaws, the 80G registration will make the NGO quite a promising prospect through the enhancement in the organization’s credibility as well as the reliability of everyone dealing with the same.

    Well, who doesn’t like freebies? So, the 80G certificate will enable the donor to the NGO not about good feelings but also to make donations for the specific cause along with incentivising everyone through benefits of tax owing to reduction in low tax income.

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    What all needs to be submitted for seeking 80G/12A Registration?

    Paperwork providing proof that the business entity is the trust/ organization/ incorporation certification/ MOA/AOA copies under section8, of companies, MOA, registration certification meant for societies.

  • PAN card copy of business
  • Form 10G
  • NOC from owner of the property
  • Copies of business utility bills
  • Donors list mentioning address as well as PAN details
  • List of donors with mention of address along with PAN details
  • Paperwork with regard to books of accounts, income tax returns
  • Details of welfare activities conducted by the organization over the past 3 years.
  • In the case of trusts, a comprehensive list of boards of trustees.

    • Who all are eligible for 12A & 80G certifications?

  • The NGO serves as the public charitable trust/ u/s companies act introduced in the year 1956, and this is to work owing to the public welfare as this will be facilitated within the provision
  • Also, there will be donations being permitted u/s 80G facilitated for tax exemption
  • The NGOS should be in the position of maintaining the accounts book owing to the expenditure as well as the receipts.

    • What is the tactic to go for the 80G/12A registration process?

  • The first step is filing an application form & submitting the same for 80G certification to the concerned income tax authorities. The submission of the form is to be done to the area that falls under jurisdiction.
  • After submission of the paperwork as well as applying to the income tax department, it is crucial to scrutinize the same.
  • When the officials require information, then they will ask for the additional documentation. So, they will be requiring the paperwork within the prescribed duration.
  • After reviewing the application and being completely satisfied with all the information extended, the commissioner from income tax will issue 80G registration to the concerned authorities.

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    How legal consultants can assist you in seeking 80G/12A Registration online?

    The process of seeking 12A/ 80G certification in India is a bit complicated. Thus, the team of legal consultants is here to assist you in getting in touch with the right people who will be streamlining the whole procedure for you. Thus, there will be no longer any of the requirements for physically visiting the income tax officials in the country, compiling all supporting paperwork, and addressing all grievances, complaints as well and objections side by side. Also, the seasoned professionals will be facilitated in handling all registration along with certifications on your behalf. The team of consultants will be comprised of the Ca’s, company secretaries, attorneys.

    How legal consultants make obtaining 12A registration easy?

    The experts will be assisting you in gaining an understanding of the process of 80G/12 A certification acquisition and also thorough guidance about the documentation process, as well as the submission. So, all you have to take the assistance of 80G 12A registration providers and you can acquire the approval within a short duration. Enroll for the registration package that best matches your unique requirements and the dedicated experts will ease and quickly assist you in filling out your application, and getting 12A registration.

    The legal experts will be undertaking the task, applying on your behalf, and once the verification of documentation is done, the requisite certification will be delivered to you online.