What Are 12a and 80g and How to Apply Online

What Are 12a and 80g and How to Apply Online

12a and 80g registration are two schemes. That allows donors to get tax exemption on their donations under section 80g of the Income Tax Act. 

Donors can get a 100% or 50% deduction on their donations depending on the organisation they donate to. 

12a registration, on the other hand, allows donors to get a 100% exemption on their donations.

What is 12A registration?

12A registration for NGOs is a process by which an NGO can be registered itself under the Income Tax Act. 

This allows the NGO to avail of certain benefits, such as exemption from income tax and tax deductions for donations made to the NGO. 

The process of 12A registration is fairly simple and can be done online.

Once an NGO is registered under 12A, it can start availing of the various benefits of the Income Tax Act. 

This can help the NGO to save money and use its resources more efficiently. 

Additionally, the process of 12A registration also makes the NGO more trustworthy and transparent, which can help it to attract more donors and supporters.

In order to be designated as a 12A NGO, an organisation must fill out and apply to the Registrar of Companies. 

The organisation must also provide documentation proving that it is a charitable organisation. 

Once the application is approved, the NGO will be granted 12A status and will be exempt from paying income tax on donations received.

The 12A registration is an important designation for NGOs, allowing them to receive tax-exempt donations from individuals and businesses. 

This can be a major source of funding for NGOs. So, it is important to be aware of the requirements for 12A registration.

What are the benefits of 12A registration?

The 12A registration is a certificate of approval. Issued by the Ministry of Home Affairs (MHA). 

Which allows an NGO to receive foreign funding. This registration is necessary for all NGOs. 

That wish to receive donations from foreign donors ensures that the NGO is operating within the law and is not involved in any illegal activities.

The benefits of 12A registration are many, as it allows NGOs to receive foreign funding, which can be used to further their cause. 

Additionally, it provides donors with assurance. That their donations are going to a legitimate NGO. 

Registration also allows NGOs to apply for tax exemption, saving the organisation a significant amount of money.

Overall,12A registration is important for NGOs to achieve their goals. By accessing the benefits of 12A registration. 

NGOs can increase their capacity to deliver their services. And make a positive impact in their communities.

Required Documents for 12A Registration

The 12A registration is required for all NGOs that wish to receive foreign funding. This document must be submitted along with the following:

  1. A copy of the NGO's Memorandum of Association
  2. A copy of the NGO's registration certificate
  3. A list of the NGO's board of directors
  4. The NGO's bank account details
  5. A copy of the NGO's PAN card
  6. A copy of the NGO's last audited financial statement

These are the 12A documents required. Suppose you are planning on registering your NGO for the app12A. 

You must have all the required documents in order. Failure to do so may delay the process or result in your application being rejected. 

What is 80G registration?

The 80G registration for NGOs is a tax exemption certificate. That allows the organisation to receive tax-deductible donations. 

This certificate is granted by the Income Tax Department of the Government of India. 

The donations received by the NGO can be in the form of money, property, or services. The 80G registration for NGOs ensures that the NGO can avail of the benefits under the Income Tax Act. 

The 80G registration for NGOs also allows the NGOs to receive foreign donations. The NGO must apply for registration within a month of receiving the donation.

The 80G registration for NGOs is a valuable asset for any NGO. It allows the NGO to receive donations. 

They are tax-deductible and also allow the NGO to receive foreign donations.

Requirements needed to avail of the benefits of 80G registration?

Section 80G of the Act allows a deduction regarding donations made to certain approved charitable institutions or trusts.

In order to enjoy the benefit of deduction under section 80G. The assessee is required to fulfill the following conditions: 

-The assessee should make a payment in cash or by cheque or draft or by any other mode, as may be prescribed; 

-The payment should be made to a charitable institution or a trust; 

-The payment should be for the purposes specified in section 80G; 

-The assessee should get a receipt from the donee institution for the payment made by them; 

-The assessee should furnish the details of such payment. In the prescribed form, along with the return of income.

What is the goal of 80G registration?

The Income Tax Act of 1961 provides for certain deductions. In respect of donations made to specific funds, charitable institutions, and so on. 

The deduction is under section 80G of the Income Tax Act. It is in respect of donations made to certain approved charitable institutions and funds. 

The approved philanthropic institutions and funds get notified by the Government. Are eligible for deduction under section 80G.

The main goal of section 80G is to encourage people. To donate to approved charitable institutions and funds by providing tax benefits. 

The approved charitable institutions and funds use the donations received for charitable purposes. 

The deduction under section 80G is available in respect of donations made by individuals and Hindu Undivided Families. Companies and firms are not eligible for deduction under section 80G.

Deduction under section 80G is available for donations. Made in cash, cheque, or any other mode specified in this regard.

Documents Required For 80G Registration

To get registration under section 80G. The NGO has to apply with the Registrar of Companies. 

Along with the required documents. The list of documents required for 80G registration is as follows:

  1. Memorandum of Association or the NGO's constitution
  2. Certificate of Registration
  3. Income and expenditure statements for the past three years
  4. Balance sheet for the past three years
  5. List of donors and donors' addresses
  6. Auditor

12a and 80g Registration Documents Required

 Both 12A and 80G Registrations documents required are as follows:

  • Copy of PAN card of registered applicant NGO 
  • Certificate of Incorporation of NGO 
  • Trust Deed (in the case of a Trust) or Memorandum of Understanding (MOA), 
  • Articles of Association (AOA) of Company (in the case of a Society/Section 8 Company) 
  • Complete list of welfare activities

These are the 12a and 80g registration documents required.

How to apply online for 12A and 80G Registration

Are you looking for 12A and 80G Registration for NGO? Follow the given steps to apply online:

  1. Go to the Ministry of Corporate Affairs (MCA)

 website.

  1. Click on the 'Services' tab on the MCA website. And then select 'Registration' from the drop-down menu that appears.
  2. Select '12A and 80G Registration for NGO' on the registration page.
  3. Fill in the required details and upload the necessary documents.
  4. Once you have submitted the form. You will receive a confirmation email with your application reference number.

Conclusion

12A and the 80G registration certificate. That allows a charitable organisation to receive tax-deductible donations. 

The 12A is a registration certificate issued by the Income Tax Department. The 80G is a certificate of exemption from the Income Tax Act.

These registrations get granted by the Income Tax Department. After due diligence and are valid for a period of 5 years.

FAQ’s

  • What are 12A and 80G?

Registration trusts and non-profit organisations are free from paying taxes under Section 12A—an NGO's donor benefits from 80G registration.

  • What is the major difference between 12A and 80G?

Section 80G Registration falls under Section 80G of the Income Tax Act. And benefits the donor of an NGO. Whereas Section 12A Registration helps an NGO get its income tax-free.

Contact Us for CA Services Online, Finance Controller ServicesBookkeeping Services Outsource Accounting ServicesVirtual Accounting ServicesAccounting Service For Startups , ESOP Services  in Delhi, Noida, Gurgaon, and all across India: write to us at accounts@especia.co.in. Or Call On :(+91)-9711021268 +91-9310165114

- Share this post on -