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.
Benefits of 80G registration:
Benefits of 12A registration:
Documents for 80G:
Documents for 12A:
Application and Documentation:
80G Application Process:
12A Application Process:
Evaluation and Registration:
80G Process:
12A Process:
Eligibility for 80G:
Eligibility for 12A:
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.
80G registration allows donors getting tax deduction of up to 50% of donation amount made to the registered entity, encouraging more charity contributions.
Yes, charitable trusts along with societies and NPO companies can seek 12A tax exemption under Income Tax Act, 1961.
No application fees is applicable for 80G or 12A registration
applications as per current rules.
The 80G certificate is valid from the date of issue and must be renewed in every 5-6 years by filing a renewal form.
Yes, the registrations can be revoked in cases of violation of rules
like non-disclosure of income, false declarations, misuse of funds etc.