Updated on February 07, 2025 05:13:34 PM
12A & 80G Registration ensures that Income of an organization is exempted from Income Tax if an NGO has this registration. If an organization has obtained certification under section 80G of Income Tax Act, then donors of that NGO can claim exemption from Income Tax. Application for registration under section 12A and 80G can be applied just after the registration of NGO.
Application for registration under 80G and 12A can be applied together or it can be applied separately. If an organization wants to apply for both registrations separately, then application for registration u/s 12A would be applied first. Getting 12A registration is mandatory for application of registration u/s 80G of Income Tax Act, 1961.
At Professional Utilities, Our Team of experts will help you register your 12A & 80G in a seamless manner without you being worried about the documents and registration process. We will take care of all the documents and registration requirements and do the incorporation in the most efficient way due to our years of experience in Company registration.
12A & 80G Sample Documents
Non-profit organizations plays an important role in India's social and economic growth. However, they lack a consistent source of money to produce their revenues. They are largely dependent on grants, donations, and other sources of unconditional support.
These contributions enable them to continue operating and meet their goals on time. The government uses 12A and 80G registrations to encourage such contributions to non-profit groups.
12A Registration: NGOs can seek 12A registration under Section 12A of the Income Tax Act of 1961. It exempts these groups from paying taxes on revenue earned from grants, gifts, and other forms of unconditional contributions. All NGOs who wish to profit from Section 12A must register.
80G Registration: NGOs get 80G registration to allow their contributors to claim tax deductions for contributions made to these groups. The goal of 80G registration is to promote greater donations to NGOs to support their welfare initiatives. This registration is optional and may only be obtained after 12A registration.
Obtaining Section 12A and 80G registrations under the Income Tax Act can be a game changer for charities and non-governmental organizations (NGOs). These registrations not only represent official recognition from the Income Tax Department, but they also provide access to a plethora of benefits that help the organization's purpose. The effect and relevance of 12A and 80G registration cannot be emphasized, from promoting a culture of transparency and accountability to increasing fundraising efforts.
The following organizations are eligible to apply for 12A 80G registration:
To be eligible for Section 12a and 80g registration, organizations must meet specified standards imposed by the Income Tax Department:
This section deals with registering charitable or religious non-governmental organizations (NGOs) so that they can benefit from tax breaks on income generated by donations. To be eligible for Section 12A and 80g registration, an organization must meet the following requirements:
Here is the list of documents required for 12A & 80G certificate registration:
Here are the complete steps for 12A Certificate registration :
Here are the complete steps for registration of 80G Certificate:
Note: The aformentioned Fees is exclusive of GST.
The registrations granted for the first time under Sections 12A and 80G are provisional and only valid for three years. A renewal application for this provisional registration must be submitted either 6 months before the validity period expires or within 6 months of the start of operations, whichever is earlier. Renewed registrations are valid for five years at a time.
The process of registering your organisation u/s 12A and 80G is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register under 12A and 80G online in 3 easy steps:
In India, non-profit organizations must register under sections 12A and 80G. These registrations can help organizations save money on taxes, gain more donors and volunteers, and boost their trust. If you are a non-profitable organization, we recommend applying for 12A and 80G registration.
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.
12A and 80G are two different registrations granted by the Income Tax Department to Non-profit organizations or NGOs that allows them to get tax exemption on the donations received from donors.
The purpose of 80G Certificate Registration is to incentivize the donors who make impactful financial contribution to the NGOs or Non-Profit organisations.
The purpose of 12A Certificate registration is to enable non-profit organisations such as section 8 company, trust, societies,NGOs to claim tax exemption on the donations received.
The minimum requirements for registration of 12A and 80G Certificate are as follows:
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