12A & 80G Registration
If you are running an NGO, then you shall have a decent knowledge of 12A & 80G registration. There are various benefits to an NGO or a trust or an institution after registering under it. One of the most remarkable benefits is the rebate on the income tax.
An 80G Registration is issued by the Income Tax Department to a non-governmental organization (NGO) such as a charitable trust, or a Section 8 Company. The 80G Certificate is granted to encourage the donors to donate funds into such non- profit organizations. Furthermore, the donor gets a tax exemption of 50% when they make donations to such organization, as they become eligible to deduct such amount from their Gross Total Income. Additionally, in order to avail the exemption, the donor needs to attach the stamped receipt of the donation made. Such a receipt must contain the donor’s name, date of donation, and PAN of the organization.
12A Registration Online in India, is a onetime tax exemption provided to trusts, NGOs and Section 8 Companies. Organizations holding a registration under section 12A are exempted from paying taxes on their surplus income.
NGOs are organizations involved in charitable and non-profit activities. However, they do earn income and they are required to pay tax as per normal rates if not registered under section 12A, Income Tax Act.
Documents required for 12A & 80G Registration (80G)
- Registration certificate
- MOA and AOA
- Institution’s PAN Card
- Utility bill of the institution
- Progress report of the NGO, for either 3 years or from the starting date
- 12A registration copy
- The entire process takes about three to four months for completion. Yet, you shall not be worried regarding the time as you will have many benefits. Alongside that, the registration is only for one time and doesn’t require renewals like any other registrations.