Re-validation of 80G and 12A – Process and Procedure

Last Updated at: September 25, 2020
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Re-validation of 80G

Are you running an NGO? We hope you are availing income tax exemptions after obtaining 80G and 12A registration. Have you revalidated these registrations as per the new provisions? Not sure about it? Don’t bother! Just go through this blog! We will tell you about the process to revalidate 80G and NGO registration under Section 12 A. 

What are the revalidation of 12 A and 80G registration for an NGO?

If you are an NGO, a Section 8 corporation or a charitable trust and are availing benefits of registering under sections 12 A and 80G deduction, revalidation is necessary for you. You will need to apply to the Income Tax authorities for revalidation of your existing 80G and 12A registration. Without the revalidation, you will not be able to enjoy the existing benefits of 12A certificate for NGO and 80G deduction. 

This revalidation is necessitated due to a recent amendment brought in by the Finance Act, 2020. It has proposed a new regime for institutions, charitable/religious trusts, universities, hospitals, educational institutions, other medical institutions etc.

The Act has mandated all charitable institutions, already registered under Sections 12A/12 AA or/and 80G of the Income Tax Act, 1961, to re-obtain the existing approval/registration under the revised provisions. This new regime has become applicable from 1st June 2020 and registered institutions were asked to apply for revalidation by 31st August 2020.  However, due to the prevailing COVID-19 situation, the CBDT has deferred the implementation of the new procedure to 1st October 2020. This means the new date to start the compliance procedure is October 1, 2020. The same will continue till December 31, 2020.

What is the process of revalidation of 80G and 12 A NGO registration?

You need to apply for revalidation of 12 A and 80G deduction through the prescribed online process. The online form will focus on whether the charitable activities taken up by your NGO are genuine.  Once you apply for revalidation, an order granting the registration will be issued within 3 months. This revalidated 80G and 12 A NGO registration will remain valid for five years after which, the same needs to be revalidated again. In that case, the revalidation application must be within 6 months before the expiry of the validity. 

get legal advice 

Important features of revalidation of section 80G and 12A registration

  • No need for detailed enquiry

As per the amended provisions, entities already registered to section 80G and 12 A need to simply apply for revalidation. Moreover, they may not have to go through detailed enquiries by the CIT/PCIT. On receipt of the revalidation application, the CIT/PCIT is suppose to pass the registration order. The enquiry will be applicable only if-

  • After the expiry of the registration validity of 5 years
  • Conversion of the provisional approval/registration into final/full approval/registration
  • The application will be examined for correctness

Even though there will not be any enquiries, the revalidation applications will have consideration for their completeness and correctness. Further, the authority will check if the by-laws, trust deeds, member lists, registration certificates, and donor lists are valid and are in a proper format. 

  • The order needs 3 months to pass

The CIT/PCIT will need to pass an order of approval (or rejection) of NGO registration within 3 months. 

  • Applicable for institutions covered under Section  12 AA as well

Section 12 A deals with charitable institutions with registration before 1996 and Section 12 AA deals with institutions registered after 1996. Additionally, the new provisions of revalidation of Section 80G and 12 A registration are applicable for NGOs covered under Section 12 AA as well. 

A word on NGO Darpan registration

The Central Government has now set up a digitized database of all NGO/trust/society in India. Moreover, any NGO must register itself with the Niti Aayog if it wants to avail 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. Furthermore, 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, our team will immediately file for 12A registration and 80G deduction.  Additionally, the seasoned experts at Vakilsearch are equipped to complete the revalidation process online as well. Further, post the submission of application, our representatives would be doing all the necessary co-ordination with the authority for expediting your application. 

 

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Re-validation of 80G and 12A – Process and Procedure

4407

Are you running an NGO? We hope you are availing income tax exemptions after obtaining 80G and 12A registration. Have you revalidated these registrations as per the new provisions? Not sure about it? Don’t bother! Just go through this blog! We will tell you about the process to revalidate 80G and NGO registration under Section 12 A. 

What are the revalidation of 12 A and 80G registration for an NGO?

If you are an NGO, a Section 8 corporation or a charitable trust and are availing benefits of registering under sections 12 A and 80G deduction, revalidation is necessary for you. You will need to apply to the Income Tax authorities for revalidation of your existing 80G and 12A registration. Without the revalidation, you will not be able to enjoy the existing benefits of 12A certificate for NGO and 80G deduction. 

This revalidation is necessitated due to a recent amendment brought in by the Finance Act, 2020. It has proposed a new regime for institutions, charitable/religious trusts, universities, hospitals, educational institutions, other medical institutions etc.

The Act has mandated all charitable institutions, already registered under Sections 12A/12 AA or/and 80G of the Income Tax Act, 1961, to re-obtain the existing approval/registration under the revised provisions. This new regime has become applicable from 1st June 2020 and registered institutions were asked to apply for revalidation by 31st August 2020.  However, due to the prevailing COVID-19 situation, the CBDT has deferred the implementation of the new procedure to 1st October 2020. This means the new date to start the compliance procedure is October 1, 2020. The same will continue till December 31, 2020.

What is the process of revalidation of 80G and 12 A NGO registration?

You need to apply for revalidation of 12 A and 80G deduction through the prescribed online process. The online form will focus on whether the charitable activities taken up by your NGO are genuine.  Once you apply for revalidation, an order granting the registration will be issued within 3 months. This revalidated 80G and 12 A NGO registration will remain valid for five years after which, the same needs to be revalidated again. In that case, the revalidation application must be within 6 months before the expiry of the validity. 

get legal advice 

Important features of revalidation of section 80G and 12A registration

  • No need for detailed enquiry

As per the amended provisions, entities already registered to section 80G and 12 A need to simply apply for revalidation. Moreover, they may not have to go through detailed enquiries by the CIT/PCIT. On receipt of the revalidation application, the CIT/PCIT is suppose to pass the registration order. The enquiry will be applicable only if-

  • After the expiry of the registration validity of 5 years
  • Conversion of the provisional approval/registration into final/full approval/registration
  • The application will be examined for correctness

Even though there will not be any enquiries, the revalidation applications will have consideration for their completeness and correctness. Further, the authority will check if the by-laws, trust deeds, member lists, registration certificates, and donor lists are valid and are in a proper format. 

  • The order needs 3 months to pass

The CIT/PCIT will need to pass an order of approval (or rejection) of NGO registration within 3 months. 

  • Applicable for institutions covered under Section  12 AA as well

Section 12 A deals with charitable institutions with registration before 1996 and Section 12 AA deals with institutions registered after 1996. Additionally, the new provisions of revalidation of Section 80G and 12 A registration are applicable for NGOs covered under Section 12 AA as well. 

A word on NGO Darpan registration

The Central Government has now set up a digitized database of all NGO/trust/society in India. Moreover, any NGO must register itself with the Niti Aayog if it wants to avail 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. Furthermore, 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, our team will immediately file for 12A registration and 80G deduction.  Additionally, the seasoned experts at Vakilsearch are equipped to complete the revalidation process online as well. Further, post the submission of application, our representatives would be doing all the necessary co-ordination with the authority for expediting your application. 

 

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