12A & 80G Registration for NGO's

For charitable and not-for-profit organizations to qualify for tax exemptions, registration under 12A and 80G is required. Avail of the benefits of tax deductions by registering your organization.

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12A & 80G Registration Process

To begin, we will meet with you to discuss your NGO's requirements and select the necessary services.

Next, we'll help you with the paperwork and actual steps you need to take to register your organization.

We'll help you make sure your NGO follows all the rules and guidelines and is ready to make a positive impact.

What is 12A & 80G Registration ?

Thinking about helping others by starting a nonprofit? Great! But before you get started, there are some important things you need to do to follow the rules.

First off, if you want your nonprofit to get tax benefits, you have to register it properly. There are two main registrations you need to know about: Section 12A and Section 80G of the Income Tax Act, 1961.

Section 12A basically says your nonprofit doesn’t have to pay taxes. And Section 80G helps your donors by letting them claim tax deductions when they donate to your cause.

These registrations are super important because they help your nonprofit get government support, save on taxes, and do more good in the community. Plus, they show people that your nonprofit is legit, your finances are transparent, and they can trust you with their donations.

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Documents Required for 12A & 80G Registration

12A & 80G Benefits

MORE FUNDS TO WORK: Through the tax exemption on NGO income, more capital will now be available for charitable purposes as it will attract more donors.

NEW SOURCES OF FUNDS: Recognized agencies, government, and international sources of funds and grants are permitted after getting 12A & 80G registration.

FCRA FUNDINGS: Only 12AB and 80G registered NGOs are allowed to accept International funding, with exceptions available under the Foreign Regulation Act, 2010 (FCRA).

BROADENS THE SCOPE OF NGO: Since, more donors are attracted for charity purpose as that amount is exempted from Tax, this broadens the scope of the NGO’s mission as more donations are now available for charity.

TAX EXEMPTION: The NGO or society enlistment would be absolved from paying expenses by asserting this exception. To claim this exemption, the NGO would need to provide the 12A certificate.

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Frequently Asked Questions

What is an 80G certificate?

The Income Tax Department issues an 80G Certificate to a Section 8 Company, non-profit organisation, or non-legislative organisation (NGO). The 80G testament aims to motivate a growing number of supporters to donate cash to these organisations.

Why is 12A registration necessary?

The Income tax department grants trusts and other NPO’s a one-time enrollment known as a 12A registration. The registration is done to prevent having to pay income tax.

 
Who is eligible for 12A registration?

To obtain 12A registration, an organization must be registered as a trust & a section 8 company under the Indian Companies Act. Further, it must be established for a charitable or religious purpose & its income must be applied solely for these purposes. However, organizations engaged in certain activities are not eligible for 12A registration, such as those involved in profit-making ventures or those that engage in political activities.

 
Is the trust taxable without 12A registration?

Yes, it is. A trust is considered a separate legal entity and as such, is subject to its own tax liability. However, registering for 12A exemption can provide certain tax benefits and should be considered by trusts seeking to maximize their tax efficiency. It’s important to seek professional advice when it comes to taxation and trust registration to ensure that all obligations and opportunities are taken into account.

Is 12A registration compulsory for NGOs?

Proper registration and compliance with government regulations are critical in ensuring an NGO’s legal status and its ability to operate effectively. One of the requirements mandated by the Indian government is the 12A registration for non-profit organizations.
This legal document exempts an NGO from paying taxes and allows them to receive tax-deductible donations. While it is not compulsory for NGOs to obtain 12A registration, being registered can help them in their fundraising efforts and provide a sense of legitimacy to their operations.