12A and 80G registration are recommendable for all the NGOs, whether it is Trust, Society, or Section 8 Company.
NGOs with 12A registration can claim a complete exemption from the Income Tax Department. However, those with 80G certification get the advantage of attracting more donors to the organization for donating funds.
If, being an NGO you don’t obtain such registrations; then you will be subject to regular tax rates. Furthermore, attracting donors for donations become arduous.
Both Sections 12A and 80G have their own significance and offer several benefits to NGOs with such registrations. Those advantages are as follows:
80G Certificate is issued under the Income Tax Act, 1961 to NGOs by the Income Tax Department.
The primary objective behind the grant of 80G Registration is to motive more donors to organizations for donating funds.
Furthermore, donors receive a 50% tax exemption on his total taxable income. For availing this exemption, the donor must attach the stamped receipt against the donation issued by the NGO.
For obtain 80G Certificate, you need to provide the following documents:
The certificate of 80G registration could be obtained in the four simple steps as follows:
Step 1: Submit the application for 80G registration to the Commissioner of Income Tax Department in the concerned jurisdictional area of the organization.
Step 2: Once you have submitted all the documents and application, the Income Tax Department will inspect them carefully.
Step 3: In case, the officials need any more information, they will ask you for additional documents. You need to submit those documents within the prescribed time.
Step 4: If the department is satisfied with the verification of documents and the information provided, the Commissioner will issue the 80G certification to the organization.
80G certificates have validity for the lifetime.
12A registration is the most initial steps NGOs need to follow to seek a certificate of exemption from the Income Tax Department.
Companies registered under Section 12A doesn’t need to pay income tax as they are exempted from these payments.
Furthermore, 12A certificate helps you seek permission from government and organizations abroad, as 12A registration acts as a legitimate proof of your NGO’s existence.
One can obtain 12A certificate simply following the steps described below:
Step 1: As per Rule 17A of the Income Tax Act, 1961, the applicant needs to file Form 10A with the Jurisdictional Commissioner of the Income Tax Department.
Step 2:Secondly, the Commissioner will verify the application along with the attached documents to check the authenticity of the information provided. If something is missing, he will ask for additional documents.
Step 3: If the Commissioner is satisfied with the report, he will issue the Certificate of 12A registration. However, if he doesn’t find the documents and application relevant, then he will reject the application.
12A certificate has lifetime validity.
In case you query or wish to register your NGO under 12A and 80G, Please click here or fill the inquiry form. You will get dedicated Call from a CA /CS.
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