80G and 12A Registration

What is 80G and 12A Registration?

Every NGO sustains itself through donations. And one way to invite donations is through providing the donors and the NGO with tax incentives. 80G and 12A registrations incentivizes donations by providing tax exemptions.

80G Certificate

80G Registration is a tax exemption certificate issued by the income tax department to non profit entities such as, Section 8 Companies, Society’s or Trust. When a donor donates in a 80G registered NGO, he gets tax exemption up to 50%. Simply put, the donor can show half of the donated amount as deduction from his Gross Total Income.

12A Registration

12A registration is a way for Non-Governmental Organization to save taxes on the income that they earn. Traditionally, there is a misconception that non-governmental organization enjoy 100% tax exemptions. However, that is not the case because whatever these organization earn through donations is also interpreted as income by the government of India. Thus, if an organization seek to make its income tax exempted, it must first obtain 12A registration in India.

What are the different 80G and 12A registration benefits?

Following are the benefits of 80G Registration:

1. Tax exemptions on donated income: The donors can enjoy a lot of tax exemptions when it comes to donating to an NGO.
2. Promotion of more donations to a non-governmental organization: Because of the tax exemptions that your non-governmental organization provide, donors will flock around you – willing to grant you donations that you can then use to help more people.
3. Enhanced reputation for the NGOs: As more donations come to your organizations, your reputation in the domain increases. It opens us doors for government funding.

Following are the benefits of 12A registration in India:

1. Access to government schemes and grants: With 12A registration, you can access other grants and schemes introduced by the government for the sake of social welfare.
2. Tax exemptions: 12A registration grants you complete tax exemptions.  Leverage it to grow your organization’s reach.
3. Act as a proof of existence for an NGO: In the case where you are not able to present the certificate of registration to prove your Ngo’s existence, you can use the 12A registration certificate as proof.
4. Is applicable on all types of Non-Governmental Organizations: Whether you are Section 8 Company, a Trust or a Society, all types of non-profit organizations can get 12A registration in India.

Documents required

Following are the Documents required for 80G and 12A registration in India

Documents required for 80G Registration:

1. Duly filled Form 10G
2. Registration certificate of the society or MOA of a Section 8 Company
3. NOC from the owner of the property on which the Non-Profit Organization is working
4. PAN card of the NGO
5. Copy of utility bills
6. List of all the donors
7. Books of accounts and the income tax details
8. List of all the social welfare activities that the applicant is engaged with
9. Deed for verification in India

Documents required for 12A registration

1. Duly filled 10A form
2. Document evidence of the establishment of the NGO
3. Bank Account statement for the past three years
4. PAN Card of the NGO

Process 80G and 12A Registration

Following are the steps to carry out 12A and 80G Registration process online

Procedure to obtain 80G Registration:

1. Fill the application form for 80G Registration: Fill out the application FORM10G and submit it to the Commissioner of Income Tax department in the area wherein lies you Non-profit organization
2. Wait for the inspection: Once you submit the application form, the officer of Commissioner of Income Tax shall send someone to assess your location.
3. Provide additional documents: After inspection, the officials might ask you to provide additional documents and evidences.
4. Getting the certification: If the officials find your organization satisfactory, they will grant you the certificate of registration in India.

Procedure to obtain 12A Registration

1. Fill out the form 10A: Review the application form and submit to the Commissioner of Income Tax department in your region.
2. Assessment of the organization: The Commissioner will assess your organization and might ask for additional documents.
3. Get the 12A registration: If the commissioner deems your organization worthy, you shall obtain the 12A registration certificate.

12A and 80G Registration Cost

Here is the breakdown of 12A registration cost:

1. Government fees
2. Professional fees
3. Total

Here is the breakdown of 80G registration cost:

1. Government fees
2. Professional fees
3. Total

Our Assistance

Our experts provide you end to end support for 80G and 12A registration in India. We provide:

1. Application filing services
2. Documentation services
3. Preparing your organization for inspection
4. Department follow up
5. And other services you might need over the course of the application process.

Please, reach out to us for your 80G and 12A registration needs.