Updated on April 09, 2025 05:30:13 PM
Jharkhand, blessed with its natural wealth and diversified communities, has been plagued with various socio-economic challenges to which the non-profit organizations work. NGOs, Trusts, Societies, and Section 8 Companies play a vital role in educational, health, and sustainable development sectors in the state. To increase their operational capacity and their financial efficiency, these organizations take a lot of benefits from the 12A and 80G registration under Income Tax Act, of 1961.
12A Registration provides tax exemptions on the income of non-profits, ensuring that funds raised through donations, grants, or other means are not taxed. This allows organizations to reinvest their resources entirely in their charitable activities, amplifying their impact in addressing community needs.
80G Registration provides tax deduction benefits to donors so that people and businesses can donate in abundance to registered organizations. The dual benefit of increasing fundraising efforts while creating a philanthropic culture in the state is strengthened.
With the income tax department's streamlined online application process, organizations in Jharkhand can easily file for 12A and 80G Registration. certification add credibility, and tax compliance, and enable a nonprofit organization to achieve its vision of fostering meaningful social and economic change in the region.
12A & 80G Sample Documents
Table of Content
12A and 80G Registration are the most important registration under the Income Tax Act, of 1961, for NGOs, Trusts, Societies, and Section 8 Companies in Jharkhand. These Registration provide essential tax benefits that support the financial sustainability of non-profit organizations and encourage donor contributions.
12A Registration is given to ensure that income from nongovernmental organizations is not subject to income tax. For instance, a charity organization in Jharkhand generates income in the form of donations, grants, or any other means. The total income will be used to further the causes in health, education, and rural development without paying a single penny towards income tax.
80G Registration encourages donors through tax deductions for contributions made to registered non-profits. This encourages individuals and corporations to donate more generously, strengthening the financial resources of charitable organizations and promoting a culture of giving in Jharkhand.
For NGOs and other non-profits in Jharkhand, these Registration are essential for building trust, ensuring tax compliance, and scaling their initiatives effectively.
The benefits of having 80G and 12A Registration for charitable organizations and NGOs are many and far-reaching in day-to-day operational features:
To apply for 12A and 80G registration in Jharkhand, NGOs, Trusts, Societies, and Section 8 Companies must provide specific documents to establish their eligibility and compliance. Below is a comprehensive list:
Applying for 12A and 80G registration in Jharkhand involves a streamlined online process through the Income Tax Department’s e-filing portal. Here is a step-by-step guide:
There are no fees levied by the Income Tax Department for the 12A and 80G registration process. The procedure is free for those eligible organizations that apply.
Minor expenses may be incurred, though, in the course of doing so, including:
Note: Although the fee is variable, the entire cost will depend upon the level of applicability and the requirement for professional aid.
Surely, the validity of Sections 12A and 80G registration starts from provisional registration which is for three years. To maintain the status of the provisional registration, an application can be initiated either six months before its expiration or six months from the inception of operations, whichever is earlier, for renewal purposes. Upon renewal, such Registration get another five years. The same process will go on every succeeding five years to remain covered.
Conclusion
12A and 80G Registration are necessary to help NGOs, Trusts, Societies, and Section 8 Companies in the state of Jharkhand reach financial sustainability and increase the scale of their social efforts. These Registration exempt them from taxes and give their donors a benefit in tax, allowing an enabling environment for philanthropic activities and charity.
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Frequently Asked Questions (FAQs)
12A Registration grants NGOs, Trusts, Societies, and Section 8 Companies income tax exemption based on charitable, religious, or educational activities.
80G Registration offers donors tax deduction benefits from donations to the organization. This builds people's confidence in contributing more and thereby adds to the organization's credibility.
These are charitable, religious, or educational trusts and societies and section 8 companies.
The Income Tax Department does not charge an application. However, incidental costs will be paid to prepare documents, obtain legal assistance, and cover administrative overheads.
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