80G and 12A Registration
Overview of 80G and 12A Registration
80G and 12A registrations are essential certifications under the Income Tax Act, 1961, for non-profit organizations, charitable trusts, and NGOs in India.
80G Registration: Grants donors the benefit of tax deductions on their donations. Contributions to an 80G-registered organization are eligible for a 50% tax deduction, encouraging more donations.
12A Registration: Provides tax exemption benefits for the non-profit organization itself. Organizations registered under 12A are exempt from paying income tax on their surplus income, allowing them to utilize more funds for charitable purposes.
Both registrations are crucial for enhancing credibility, encouraging donations, and ensuring financial sustainability for non-profits.
Eligibility for 12A and 80G Registration
Address Proof
A recent water or electricity bill showing the address to be registered.
Identity Proof of Members
Identity proof of at least two members, which can be a Driving License, Voter ID, Aadhaar Card, or Passport.
Payment of Registration Fee
Pay the required fee for the registration process as per the Indian Trust Act, 1882.
Processing Time
The online trust registration process usually takes around 8 to 10 days.
Presentation at Registrar’s Office
The applicant must present documents at the registrar’s office to validate them nationwide
Benefits of 80G and 12A Registration
Obtaining Contributions
Donors receive tax deductions for contributions, encouraging support for your cause.
Increased Number of Donors
An 80G certificate attracts individuals, businesses, and institutions.
Increased Trustworthiness
Certifications enhance credibility and promote transparency.
Tax Exemption on Income
12A registration exempts your NGO from income tax obligations.
Reserve Portion Adaptability
Tax exemptions allow better fund management for projects.
Legitimate Shield:
Registration provides legal protection, aiding in conflict resolution.
Documents Required for 12A & 80G Registrations
Completing the procedure for online 12A and 80G registration requires eligible NGOs to submit documents establishing their existence as legally registered entities. These documents are necessary for the applications for 12A and 80G registrations to be completed and accepted by the concerned authorities.
- For societies registered under the Societies Registration Act of 1860 and Section 8 businesses, a copy of their registration and a memorandum of association are needed.
- When a trust exists, a trust deed is necessary.
- A PAN is necessary when dealing with an NGO.
- Form 10G.
- A certificate of no objection (NOC) from the landowner at the company's registration office.
- Bills for utilities
- All donor PANs and addresses.
- The latest three years' income tax returns, books of accounts, and any other pertinent documentation.
- The Board of Trustees list
- The last three years' progress report.
- Enumeration of welfare initiatives.
- PAN card
- Form 10A
- The trust's most recent three-year bank account statement.
- Businesses registered under Section 8 of the Companies Act 2013 must have an article of association and a memorandum of association.
- A self-certified copy of the registration, a trust deed, or the society's or trust articles of association.
Registration Under Section 12A
As per the Income Tax Act of 1962 Rule 17A, you must apply using Form 10A and submit it to the jurisdictional Commissioner of Income Tax (Exemptions).
The commissioner assesses the organisation’s eligibility to do business.
If satisfied, the commissioner formally issues a 12A certificate. If additional information is needed, it can be requested.
If unsatisfied, the commissioner may hear the applicant before rejecting the application.
Registration can be revoked if the organisation engages in illegal activities, deviates from its goals, promotes specific castes or religions, misuses funds, or benefits specific individuals.
Registration Under Section 80G
Apply to the Internal Revenue Service Commissioner under the organisation’s authority for Section 80G registration.
After application, the Income Tax Department thoroughly reviews all submitted documents.
Authorities may request additional documents, which must be provided within the deadline.
If satisfied with the verification process, the Commissioner awards the organisation an 80G Certification.
Administrative Updates for 12A and 80G Enrolment
From April 1, 2021, 12A and 80G enrolment is accessible for Business Improvement Teams. For re-endorsement or re-enrolment, the registered entity must submit a new 12A/80G application to the Income Tax Department. The Department provides provisional registration within one month of application submission, pending assessment by the reviewing officer—though provisional enrolment is typically granted as it is just an acknowledgment by the Department. New registrations are also welcomed. After receiving provisional enrolment, the NGO must apply for regularisation of enrolment within six months or before the expiration of three years. Provisional enrolment is valid for a maximum of three years, after which regularisation extends validity to three to five years. NGOs must submit a donation statement when applying for re-approval or re-registration after the validity period expires.
Validity of 12A and 80G Certificates
The amended provisions under Section 80G grant registration renewals a validity period of five years, requiring applications for new 80G registrations to be resubmitted at least six months before enrolment expiration, while the amended Finance Act of 2020 similarly extends the validity of 12A registration to five years upon receiving a revalidated enrolment certificate, with the revalidation guidelines for Sections 12A and 80G following similar procedures.
Frequently Asked Questions
A 12A Certificate is registered to obtain tax exemption on income received by non-profit organizations or NGOs, making them eligible for exemptions under the Income Tax Act.
80G Authentication Enlistment allows donors to claim tax deductions for their contributions to NGOs or charitable institutions, thereby encouraging donations.
Yes, organizations generating revenue can apply for 12A and 80G registration as long as their income is utilized for charitable purposes and not for profit-making.
The registration process for 12A and 80G is generally free of charge, but there might be professional fees if you hire a consultant or chartered accountant for the registration process.
Yes, an NGO can benefit from both 12A and 80G enlistments simultaneously, as 12A provides tax exemption on income, while 80G offers donors tax deduction benefits.
An NGO becomes eligible for government funding once it is legally registered and complies with reporting, governance, and accountability requirements as per the relevant Act.
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