How to Obtain an 80G and 12A Certificate for My NGO

Last Updated at: Jun 01, 2021
5019
Obtain an 80G and 12A
In a recent advisory issued to NGOs, the MHA has said that the registered NGOs must enter the Aadhaar numbers of all office bearers and key functionaries on FCRA portal. Those who are yet to register, can do so while filing up online forms on the FCRA portal.
  1. Are you running an NGO? 

  2. Have you applied for 80G and 12A registration?  

  3. Not sure why are they required?

Don’t bother! We will tell you in detail about 80G and NGO registration Under Section 12 A. We will also tell you how you are benefitted if you Obtain an 80G and 12a registration for your NGO.

What are the 80G and 12a registration for an NGO?

Any NGO, a Section 8 corporation or charitable trust can apply for registration under Section 12 A if it wants to get an exemption from income tax. Without the 12a certificate for NGO, the receipts of the NGO will be entitled to normal tax rates. On the other hand, a registration under section 80G of the Income Tax Act provides tax benefits (80G deduction) to the donor of an NGO. 

You can apply for both the 12A certificate for NGO and registration under section 80G together or separately. If you wish to apply for them separately, you must apply first for 12A registration. As per the Income Tax Act, 1961, 12A registration is a must if you want to apply for registration under 80G. 

What are the advantages of 12A certificate for NGO?

  • The income of the NGO shall exempt from taxes.
  • It can avail benefits by taking grants from any Government agencies ( both national and international) 
  • Further, it can avail benefits of the FCRA Registration.

What the advantages of NGO registration are under section 80G?

  • Makes a donor to the NGO eligible for 80G deduction from his/her taxable earnings.
  • Attracts the donor towards donating.

Documents for NGO registration in India

The below-mentioned documents are required for 80G and 12A registration for an NGO:

  1. Duly filled Form – 10A for NGO registration u/s 12A 
  2. Duly filled Form – 10G for registration u/s 80G 
  3. Copy of PAN card in the name of the NGO.
  4. Landlord NOC
  5. Self-attested copies of the MOA /Trust Deed and Certificate of Registration and (two copies each).
  6. Copy of utility bill (anyone from electricity Bill/House tax Receipt/ Water Bill).
  7. Proof of welfare activities undertaken
  8. Progress Report for the last 3 years or since inception
  9. Balance sheet, ITR, and Books of Accounts, for the last 3 years or since inception 
  10. List of the Governing body members and their contact details.
  11. List of the donors along with their PAN and address.
  12. Any other undertaking/document/affidavit/ information may be require by the authorities.

Get legal advice

How to obtain 12A registration certificate

  • Apply to the jurisdictional Principal Commissioner or Commissioner of Income Tax. The application form 10A must accompany the prescribed documents ( Please see the documentation criteria above)
  • Moreover, the Principal Commissioner or commissioner will scrutinize the validity of the application and the documents submitted
  • On satisfaction, he will pass an order approving the registration
  • Additionally, every order granting (or refusing) the NGO registration must be passed within 6 months from the expiry of the month of receiving the application. Non-disposal of an NGO registration application within this period results in deemed approval of the registration. 

How to obtain an 80G registration certificate

  • Apply to the jurisdictional Principal Commissioner or Commissioner of Income Tax.
  • Further, the application form 10G must accompany the prescribed documents ( Please see the documentation criteria above)
  • The form should have verification by a person authorised  to verify IT return under section 140
  • Additionally, the form 10G shall be submitted electronically with a digital signature or through Electronic Verification Code (EVC)
  • Moreover, the Principal Commissioner or commissioner will scrutinize the validity of the application and the documents submitted
  • Additionally, on being with satisfaction, he will pass an order approving the registration
  • Therefore, every order granting (or refusing) the NGO registration must be passed within 6 months from the expiry of the month of receiving the application.

A word on NGO Darpan registration

The Central Government has now set up a digitized database of all NGO/trust/society in India. Any NGO must register itself with the Niti Aayog if it wants to avail of any funding/grants/schemes from the Government. Further, the registration needs to be done on the NGO Darpan portal of the Niti Aayog. 

With Vakilsearch, you can do your NGO Darpan registration online with a few simple steps. Additionally, our dedicated representatives will be in constant touch with you right from the word go. They will collect from you all the documents required and will apply on your behalf. After the incorporation has its completion, our team will immediately file for 12A registration and 80G deduction.  Further, post the submission, we would be doing the necessary co-ordination with the authority for expediting your application. Therefore, you just need to sit back & relax! We will ensure you receive your registration certificate in just a couple of days.