Section 80G- 12A Registration

What Is an 80G Certificate?

A non-governmental organisation (NGO), such as a Section 8 Company or a charity trust is provided with the 80G certificate. It supports financial contributions to certain nonprofit organisations. Additionally, when a person donates to such charities, they are allowed to reduce that amount from their entire total income, which results in a tax immunity. The donor must provide the receipt for the donation to authorise for the exemption. The information regarding the documentation, the date of the donation, and the institution's PAN must all be provided on this receipt.

About 12A Registration

NGOs are groups that engage in charity and nonprofit endeavours. They do, however, get incomes, and if they are not enrolled under Section 12A of the Income Tax Act, they must pay tax at the formal rates. Trusts, NGOs, and Section 8 Companies are eligible for a one-time tax insurance under Section 12 A of the Income Tax Act of 1961. Industries with a Section 12A registration are free from paying tax on their additional income.

Benefits of Section 80G-12A Registration

• Tax Exemption

  The NGO or society registration would be exempt from paying taxes by claiming this exemption. The NGO would need to provide the 12A certificate to make this exemption claim.

• Proof of Existence

  This certificate would serve as a legally binding declaration of the registered status of the entity to the government. The entity would have access to the necessary legal documentation to get loans or grants of some kind from the government.

• More Contributors

  Having this credential improves both the reputation of the NGO registration or society and the number of donors in addition to other factors. Under this arrangement, more donors would be eligible to file tax exemptions.

• Donors May Use This NGO Certificate

  It helps the donors to reduce their tax obligations while still paying a set amount of tax to the appropriate government agencies.

• Government Support

  NGOs and societies with these certificates are more likely to receive various grants and related funding from the government.

Documents Required for 80G Registration

The following paperwork is necessary for 80G registration:

• A Trust deed in the case of a trust
• Memorandum of Association (MOA)
• Registration certificate in the case of Section 8 company Societies
• Certificate of no objection from the proprietor of the property where the Institution's registered department is located
• Form 10G
• A document of the NGO's PAN
• A copy of a utility bill, such as an electricity or water bill, or a receipt for real estate taxes
• The names of the donors, their addresses, and PAN
• The last three years' books of accounts and accompanying documentation, including income tax returns online
• A list of the welfare initiatives being implemented and a three-year progress report
• Latest business documents

What Are the Documents Required for 12A Registration?

The following documents are expected for 12A registration:

• Section 8 firms must submit a certificate of incorporation along with documents of the MOA
• AOA of the company Form 10A
• Legal ID proof of the achievement of the Trust or NGO
• Trust deed
• Registration certificate
• Memorandum of Association (MOA)
• The Trust's three-year bank account statement
• PAN of the firm.

Procedure for 80G Registration

• Bring the essential paperwork and a request for an 80G certificate to the commissioner of Income Tax (exemption) in the region under the entity's council
• The Income Tax agency conducts an on-site examination following the submission of the form and the necessary paperwork for 80G registration
• However, if they appear insufficient or if something is missing, the income tax officials may request more documents or proof
• The commissioner issues the institution with an 80G certificate after thoroughly verifying the institution's paperwork and that of the NGO.

What Is the Procedure for 12A Registration?

• File an application in the Form 10A
• The application must be finalised in accord with the jurisdictional commissioner of Income tax's instructions
• After earning the Form and the verifying documentation, the commissioner substantiates the legitimacy of the organisation's activity
• Additionally, he has the right to request any additional paperwork or information he deems appropriate
• The commissioner problems a written declaration granting 12A registration based on the reasonable report
• The applicant is given a fair opportunity to be heard if the commissioner rejects the application because he is not satisfied.

Why Vakilsearch?

Opening an NGO is a complex legal process. It involves a set of legalities and documentation that has to be completed without any errors. If you are willing to open an NGO, then Vakilsearch should be your go to option. We have a team of experts who can provide clear insights about Section 80G registration and certification. Our team can help to register a Section 8 company without breaching any compliance. Book a slot with our registration experts right away to resolve all your queries and kickstart the process.