Updated on April 09, 2025 05:30:13 PM
The NGOs, trusts, and charitable organizations in Odisha, obtaining 12A and 80G registration for NGO under the Income Tax Act, 1961, is essential for gaining tax exemptions and encouraging donations. These certification provide significant financial benefits, ensuring organizations can focus more on their missions while maintaining legal compliance.
12A Registration: This registration exempts organizations from paying income tax on funds they receive for charitable purposes. By securing 12A registration, NGOs and trusts in Odisha can direct more resources toward their social causes, such as education, healthcare, rural development, and environmental conservation, rather than spending on taxes.
80G Registration: This certification allows donors to claim tax deductions on their contributions to registered organizations. With 80G registration, NGOs can attract more financial support from individuals, corporations, and other entities, as donors are incentivized with tax benefits for their charitable contributions.
The online application process has simplified obtaining 12A and 80G registration in Odisha, making it faster and more accessible for organizations. By submitting applications through the Income Tax Department’s e-filing portal, organizations can reduce paperwork, save time, and ensure a smooth registration process. This guide will help NGOs in Odisha navigate the eligibility criteria, required documents, and steps to apply for 12A and 80G registration online.
12A & 80G Sample Documents
Table of Content
Two very important registration related under the Income Tax Act, of 1961, for NGOs charitable trusts, and Sec 8 companies are 2A and 80G, respectively. The registration provide major financial advantages, whereby tax exemptions to the organization are achieved and tax deductions for donors, hence supporting charitable contributions.
12A Registration: This is a registration that enables NGOs and trusts to not be taxed on the funds received for income tax purposes, subject to the funds being spent on charitable activities. In Odisha, organizations holding the 12A registration are, therefore, better placed in terms of resource allocation for their social missions, like health, education, conservation of the environment, and community welfare, without burdening themselves with the imposition of taxes on the funds received.
80G Registration: The company will get more donors in its organizations because this helps to reduce taxes to those donating persons and the organization for their donations. Since these NGOs or trusts enjoy 80G registration, it can avail income-tax exemption benefits as offered in the Income Tax Act of the government. So NGOs of Odisha get funds easily for the reason of continuity in charitable operations; for individuals and corporate business organizations to donate them more.
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 Odisha, 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 Odisha 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
For the NGOs, trusts, and other charitable organizations in Odisha, 12A and 80G registration are important because they provide not only financial benefits but also credibility. 12A registration ensures that the income tax on the funds collected by the organizations is exempt, thus allowing them to save more resources for their charity activities. Similarly, 80G registration encourages donations by allowing tax deductions to the donors. This makes it easier for organizations to attract support and expand their reach.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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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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