Are you in charge of a charitable or non-governmental organization (NGO) in India? Understanding and acquiring 12A and 80G registration is essential for your organization’s financial stability and donor attraction. This tutorial explains the online 12A and 80G registration procedure in detail, including the necessary paperwork, costs, and the importance of these registrations.
What is 12A and 80G Registration?
- 12A Registration: If certain requirements are met, your NGO’s income is free from income tax due to registration under Section 12A of the Income Tax Act. This registration basically attests that your organization’s operations are truly altruistic.
- 80G Registration: Donors can deduct contributions to your NGO from their income tax returns thanks to this registration under Section 80G. Because it encourages donations to your organisation, 80G registration is an effective fundraising tool.
Why are 12A and 80G Registrations Important?
- Tax Exemption: Your NGO’s income is tax-exempt due to its 12A registration, so you can devote more money to your charitable endeavours.
- Attracting Donations: 80G registration encourages donations by offering tax benefits to donors, significantly boosting your fundraising potential.
- Enhanced Credibility: These registrations enhance your NGO’s credibility and build trust with donors and stakeholders.
12A and 80G Registration Documents Required:
The specific documents required may vary slightly but generally include:
- Registration Certificate: Evidence of your NGO’s registration, such as a Section 8 Company registration certificate, Trust Deed, or Society Registration Certificate.
- PAN Card: PAN card of the NGO.
- Financial Statements: Audited financial statements for the past few years (if available).
- Activity Report: A detailed report outlining your NGO’s activities and objectives.
- Trust Deed/Memorandum of Association: Document outlining the organization’s aims and governance structure.
12A and 80G Registration Fees:
The 12A and 80G registration application process is free of official government expenses. However, if you hire a consultant or chartered accountant to help with the procedure, you might have to pay professional fees.
Online 12A & 80G Registration Process:
The application process is primarily online through the Income Tax Department’s e-filing portal. The steps generally involve:
- Visiting the Income Tax e-filing portal: Navigate to the official income tax website.
- Logging in/Registering: Log in to your NGO’s account or register if you haven’t already.
- Selecting the appropriate form: Choose the correct form for 12A and 80G registration.
- Filling out the application form: Accurately fill in all the required details.
- Uploading documents: Upload scanned copies of all the necessary documents.
- Applying: Submit the completed application form online.
- Verification: The income tax department will verify the application and documents.
- Approval/Rejection: The registration will be granted if everything is in order.
Final Thought:
Obtaining 12A and 80G registration is crucial for any NGO or charitable institution in India. It provides tax benefits, boosts fundraising, enhances credibility, and builds trust. While the online process has made it more accessible, ensuring you have all the necessary documents and understand the requirements is essential. If you’re unsure about any aspect of the process. By securing these registrations, you’ll put your NGO on a stronger footing to achieve its charitable goals.
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