Updated on April 09, 2025 05:30:13 PM
Non-governmental organizations, trusts, and charitable institutions in Tamil Nadu will benefit immensely through 12A and 80G registration under the Income Tax Act, of 1961. Not only will these Registration help them in saving tax, but also enhance their credibility and appeal to donors.
12A registration allows an NGO or trust to claim exemptions on income generated for charitable purposes, ensuring more resources are utilized for its mission rather than being taxed. This benefit is crucial for organizations focused on social welfare, education, healthcare, or environmental causes.
In addition to the foregoing, 80G registration increases the appeal of a charitable organization by giving donors tax deductions. Contributions by donors to a registered NGO under 80G registration are eligible for tax savings and bring more donors and corporations for charitable causes.
Application and registration under 12A and 80G for Tamil Nadu have become even easier with the government changing its procedure to online registration. Applications and documents may be submitted digitally through the e-filing portal of the Income Tax Department so that there is no need for a physical visit and therefore reduced long paperwork.
In this tutorial, we will discuss all the benefits and advantages, eligibility, required documents, and step-by-step procedures to get 12A and 80G online registration in Tamil Nadu.
12A & 80G Sample Documents
Table of Content
12A and 80G Registration are crucial clearances for NGOs, Trusts, and Charitable Institutions in Tamil Nadu, through which they can function effectively in the state while availing all tax benefits and garnering donor support. The government has framed the Income Tax Act, of 1961, to facilitate greater transparency, accountability, and charitable contributions.
12A Registration: This registration provides NGOs and charitable trusts with tax exemption on their income if it is used exclusively for charitable purposes. Organizations with 12A registration are not liable to pay income tax on funds or revenue used for their approved objectives, such as education, healthcare, poverty alleviation, and environmental sustainability.
80G Registration: This registration is aimed at encouraging donations to NGOs. The donors can claim the deduction of the contributions given to the registered NGOs and thus, this is one of the most important tools for organizations that look for funding from individuals and corporations.In Tamil Nadu, these Registration empower organizations to maximize their impact while ensuring legal compliance and financial sustainability.
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 Tamil Nadu, 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 Tamil Nadu 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 the best tools for NGOs, trusts, and charitable institutions in Tamil Nadu to achieve financial efficiency, credibility, and sustainability. The 12A registration will exempt the organization from income tax, whereas 80G registration will motivate the donors by providing a tax deduction on their donations. Both these Registration enhance the ability of an organization to collect funds, establish trust with its stakeholders, and concentrate on workable social activities.
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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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