80G/12A Registration

80G / 12A Registration
(Price Start at $ 300 /-)

The Indian Income Tax Department offers nonprofit organisations an 80G registration tax exemption. Contributions made to 80G organisations that are registered are eligible to deduct up to 50% of the donation amount from their taxable income. A charity, educational, medical, religious, or other qualifying organisation must be founded in order to be eligible for 80G registration. The procedure includes applying to the Income Tax Department and providing supporting documentation, such as a registration certificate, financial statements, and activity proofs. If authorised, the IT Department will provide a registration certificate, and contributions made by the donor to the 80G-registered organisation are eligible for a tax deduction on their part up to the applicable thresholds. More generosity is prompted by this.

Income Tax Act section 12A and grants NPO’S an exemption from paying income tax. The NPO must have been founded for religious, charitable, educational, or other acceptable reasons in order to be eligible, and it must only use its assets and profits for these objectives. The IT Department must receive an application form, financial statements, activity reports, a trust deed, and a registration certificate in order to complete the registration procedure. After approval, the NPO receives a registration certificate under section 12AA, which exempts its income from income tax as long as it is used to further its goals and is reported on an annual basis. This tax exemption is crucial for NPOs as it allows them to utilize a larger portion of their funds towards their philanthropic work.

What are the Benefits of 80G and 12A registration?

Benefits of 80G registration:

  • Donations made by individuals or organizations to the 80G-registered entity qualify for tax deductions up to 50% of the donated amount.
  • Encourages more donations and charity funding from corporates, individuals and foundations since they avail tax benefits.
  • Helps nonprofit organizations appeal to prospective donors since they can claim tax exemptions.
  • Boosts the fundraising and donation collection capacity for NPOs.

Benefits of 12A registration: 

  • The registered entity gets 100% tax exemption on any surplus or income earned from its charitable activities.
  • All donations or contributions received by the 12A registered organization are exempt from tax.
  • Corpus donations to 12A entities offer tax benefits for donors under section 80G.
  • Registration provides income tax exemptions on income from investments, rental property etc if used for charitable causes.
  • Provides tax-exempt status and credibility which helps attract more funding from donors, companies and other stakeholders.

What are the documents required for 80G and 12A registration?

Documents for 80G:

  • Application Form 10G
  • Trust deed or Memorandum of Association/ Rules and Regulations
  • Registration certificate
  • PAN card copy
  • List of Board members/Trustees with contact info
  • Audited financial statements and Annual Reports of last 3 years
  • Track record of last 3 years of charitable work and beneficiaries
  • Receipt copies of donations received earlier
  • Bank account statements

Documents for 12A:

  • Application Form 10A
  • Trust deed/MOA/Registration certificate
  • PAN card copy
  • List of Trustees/Board members
  • Audited accounts and activity/annual reports of last 3 years
  • Exemption approval under Sections 80G, 35AC, etc if received earlier
  • Plan and budget for next 5 years
  • Original Receipts of all donations received
  • Copies of IT Returns filed in the last 3 years
  • Bank account statements

What is the process to be followed for 80G and 12A registration

Application and Documentation:

80G Application Process:

  • Obtain Form 10G and the prescribed application for exemption under Section 80G.
  • Fill the application form with all requisite details of the trust/organization.
  • Attach necessary supporting documents as per eligibility criteria.
  • Make an application fee payment if applicable.

12A Application Process:

  • Obtain Form 10A and complete all sections with relevant info.
  • Gather all mandatory supporting documents, affidavits, certificates.
  • Attach any prior tax exemptions granted under Sections 80G, 35AC

Evaluation and Registration:

80G Process:

  • The Income Tax Department evaluates the 80G application based on submitted documents and application scrutiny.
  • Tax officials may undertake a field enquiry to establish credentials.
  • Once satisfied, the IT Department issues an 80G registration certificate.

12A Process:

  • The IT Department examines the application, and Articles of Association to ensure compliance.
  • After scrutiny, CIT provides provisional 12A registration, usually within 6 months.
  • The NPO then needs to file tax returns for 3-5 years to get permanent registration.
  • Therefore, by submitting a comprehensive application along with supporting documents, followed by evaluation by IT department, NPOs can obtain 80G and 12A registrations.

What is the eligibility for 80G and 12A registration?

Eligibility for 80G:

  • The trust or organization must be established in India for a charitable cause.
  • It should be registered under Indian Trusts Act 1882 or Societies Registration Act 1860.
  • The institution should not spend more than 50% of its funds on administrative expenses.
  • All donations to the organization should be used for its stated charitable causes.

Eligibility for 12A:

  • The trust, society or non-profit company must be legally registered in India.
  • It should be established solely for religious, charitable, educational or other eligible purposes.
  • The NPO's income and assets should be used only for its objective, not for the benefit of any interested person.
  • The charity's board members should comprise of persons from diverse fields unrelated by family.
  • It should maintain proper accounts of its income and expenditure and file annual income tax returns.
  • Upon dissolution, the remaining assets should be given to another charitable organization, not any individual or member.

How can seedling help you with 80G and 12A registration?

Seedling provides comprehensive assistance and advisory services to secure and maintain 80G and 12A tax exemptions for your non-profit organization. Our experts meticulously handle all aspects - from documenting application forms, compiling supporting papers, managing registration processes and queries, ensuring ongoing compliance, tracking renewal timelines to providing record keeping assistance. With Seedling as your compliance and regulatory partner, you can focus resources on scaling your charitable causes without worrying about periodic filings, changes in exemption rule or audits during assessment. Our team undertakes the necessary due diligence and streamlines the process to obtain registrations, maintain legitimacy and maximize your fund utilization towards social welfare goals - all under a fixed, affordable fee structure. Partner with Seedling for efficient 80G and 12A compliance.

Most common question about our services

What is the benefit of 80G registration?

80G registration allows donors getting tax deduction of up to 50% of donation amount made to the registered entity, encouraging more charity contributions.

Can a trust apply for 12A registration?

Yes, charitable trusts along with societies and NPO companies can seek 12A tax exemption under Income Tax Act, 1961.

Is there any application fees for 80G or 12A?

No application fees is applicable for 80G or 12A registration applications as per current rules.

What is the renewal period of an 80G certificate?

The 80G certificate is valid from the date of issue and must be renewed in every 5-6 years by filing a renewal form.

Can 80G and 12A registration be revoked by IT dept?

Yes, the registrations can be revoked in cases of violation of rules like non-disclosure of income, false declarations, misuse of funds etc.

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