{"id":1485,"date":"2021-01-20T07:06:53","date_gmt":"2021-01-20T07:06:53","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1485"},"modified":"2021-01-20T07:06:54","modified_gmt":"2021-01-20T07:06:54","slug":"procedure-for-registration-under-12a-and-80g-for-ngos","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/","title":{"rendered":"What is the Procedure for Registration Under 12A and 80G for NGOs"},"content":{"rendered":"\n<p>To avail benefits of tax exemption, it is necessary for NGOs to register themselves with income tax under Section 12A and 80G of the tax act.&nbsp; Section 12A and 80G of the Income Tax can be applied together or separately as well. If any organization is willing to apply the sections separately then an application for registration under section 12A shall be applied first. Section 12A registration is compulsory to apply for registration under section 80G of the Income Tax Act. This article will provide complete information regarding what is the procedure for registration under 12A and 80G for NGOs.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3351de58f35\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3351de58f35\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/#Applicability_of_registration_under_12A_and_80G_for_NGOs\" title=\"Applicability of registration\nunder 12A and 80G for NGOs\">Applicability of registration\nunder 12A and 80G for NGOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/#12A_registration_procedure\" title=\"12A registration procedure\">12A registration procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/#Documents_required_for_12A_registration\" title=\"Documents required for 12A\nregistration \">Documents required for 12A\nregistration <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/#80G_registration_procedure\" title=\"80G registration procedure \">80G registration procedure <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/#Documents_required_80G_registration\" title=\"Documents required 80G\nregistration \">Documents required 80G\nregistration <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/#Validity_of_Registration_under_12A_and_80G_for_NGOs\" title=\"Validity of Registration under\n12A and 80G for NGOs\">Validity of Registration under\n12A and 80G for NGOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-registration-under-12a-and-80g-for-ngos\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_registration_under_12A_and_80G_for_NGOs\"><\/span>Applicability of registration\nunder 12A and 80G for NGOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The registration under <strong><a href=\"https:\/\/swaritadvisors.com\/12a-and-80g-registration\" class=\"text-primary\">12A and 80G<\/a><\/strong> is applicable to only those NGOs and charitable organizations that fulfil the following conditions: &#8211; <\/p>\n\n\n\n<ul><li>Is a Registered Society or a Charitable Trust.<\/li><li>No income is generated from the business. <\/li><li>Assets and income is used only for the charity\npurpose. <\/li><li>Books of accounts of the receipts and expenses\nare maintained regularly. <\/li><li>No undue benefits from the funds are derived by\nthe governing body of the organization or the trustees. <\/li><li>Does not work to benefit any particular religion\nor caste. <\/li><li>Separate accounts to be maintained for business\nrelated income. Donations received by NGO not to be used for such businesses. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12A_registration_procedure\"><\/span>12A registration procedure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Trusts, Societies and Section 8 Company enjoys the benefit of exemption from paying tax under 12A registration. The NGOs are non profit organisations, however; they do have income and are required to pay tax in normal rates if it is not registered under Section 12A of the Income Tax Act. The procedure for 12A registration is as follows: &#8211; <\/p>\n\n\n\n<ul><li>The applicant is required to file an application\nusing Form 10A as per the Rule 17A of the Income Tax Act, 1962 with the\nJurisdictional Commissioner of Income Tax (Exemptions). <\/li><li>The Jurisdictional Commissioner shall verify the\nauthenticity of the activities of the organization once the forms and all the\nnecessary documents along with it are received to him. The commissioner can\ncall for additional documents or information if required. <\/li><li>If the commissioner is satisfied upon the\nverification, a satisfactory report will be generated and he shall pass an\norder in writing to grant 12A registration to the applicant. In cases where the\ncommissioner is not satisfied upon the verification, he shall reject the\napplication after which the applicant shall be give a right to be heard. <\/li><\/ul>\n\n\n\n<p>The 12A\nregistration can be cancelled at any point of time on the grounds that the\nactivities of the organization are carried out against the objectives of the\ninstitution are not genuine or the NGO is benefitting a particular caste or religion\nor the income of the organization is being used for benefitting a specific\nperson or persons or the funds are invested in prohibited activities. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_12A_registration\"><\/span>Documents required for 12A\nregistration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The documents that\nare required for the 12A registration are as follows: &#8211; <\/p>\n\n\n\n<ul><li>Form 10A. <\/li><li>Documental evidence of the formation of the NGO or Trust such as- Registration certificate, Memorandum of Association of a Society, Trust Deed of a Trust, Certificate of Incorporation submitted by Section 8 Company along with Memorandum of Association (MOA) and Articles of Association (AOA) of the company.<\/li><li><strong>PAN Card<sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Financial_institution\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong> of the organization.<\/li><li>3 years bank account statement of the Trust. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"80G_registration_procedure\"><\/span>80G registration procedure <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>80G registration is issued to an NGO by the Income Tax Department. The purpose behind providing the 80G certificate is to encourage and initiate more donors and make more donations to the organizations. The donor gets benefits of tax exemption up to 50% of his donation by donating to the organizations with 80G and <strong><a href=\"https:\/\/swaritadvisors.com\/ngo-registration\" class=\"text-primary\">NGO registration<\/a><\/strong>. He is allowed to deduct the donations from their Gross Total Income. To avail such exemption, the donor has to attach the stamped receipt that was issued by the NGO to him. The receipt must mention the date, name and PAN Card of the organization. The 80G registration procedure is as follows: &#8211; <\/p>\n\n\n\n<ul><li>The applicant is required to submit the\napplication for 80G registration with the Jurisdictional Commissioner of Income\nTax (Exemption).<\/li><li>The premise inspection is done by the Income Tax\nDepartment once the form and the required documents are submitted for 80G\nregistration. <\/li><li>The applicant might be asked to submit any\nadditional documents and evidence that the officials might require. <\/li><li>The commissioner on being satisfied upon the\nverification and scrutinizing all the documents and investigating the office of\nthe NGO shall grant an 80G certificate to the applicant. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_80G_registration\"><\/span>Documents required 80G\nregistration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The documents\nrequired by the applicant for 80G registration are as follows: &#8211; <\/p>\n\n\n\n<ul><li>Form 10G. <\/li><li>In the case of <strong><a href=\"https:\/\/swaritadvisors.com\/section-8-company-registration\" class=\"text-primary\">Section 8 Company<\/a><\/strong> and society a Memorandum of Association and registration certification, and in case of Trust a Trust Deed. <\/li><li>If the property is rented then a No Objection Certificate (NOC) from the owner of the property. <\/li><li>If the property is self owned then the copy of the utility bills- the electricity bill, water bill or house tax receipt. <\/li><li>Copy of the PAN Card. <\/li><li>List of donors along with their complete address and PAN Card. <\/li><li>Three years of bank account statements and Income Tax Return documents. <\/li><li>Deed for verification- Original MOA, RC or Trust Deed. <\/li><li>Three years list of welfare activities carried out by the NGO and the progress report. <\/li><li>A detailed list of the board of trustees. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Validity_of_Registration_under_12A_and_80G_for_NGOs\"><\/span>Validity of Registration under\n12A and 80G for NGOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Registration\nunder 12A and 80G for NGOs is valid for a life time till the existence of an\nNGO. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Non Governmental Organisation (NGO) is a non- profit organization established to promote social welfare and for a charitable purpose. Many benefits are provided to the NGOs upon its registration and one of the benefits is the tax exemption benefit. NGOs are exempted from paying tax if they are registered under Section 12A and 80G of the Income Tax Act. The application for registration under 12A and 80G for NGOs has to be applied with the Income Tax Commissioner having jurisdiction over the institution.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/is-it-possible-to-make-members-in-nidhi-company\/\">Is it Possible to Make Members in Nidhi Company<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To avail benefits of tax exemption, it is necessary for NGOs to register themselves with income tax under Section 12A and 80G of the tax act.&nbsp; Section 12A and 80G of the Income Tax can be applied together or separately as well. If any organization is willing to apply the sections separately then an application [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[51],"tags":[193],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1485"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1485"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1485\/revisions"}],"predecessor-version":[{"id":1503,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1485\/revisions\/1503"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1486"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}