12A and 80G Registration
Obtain 12A registration effortlessly with Finlegal forte to get tax-exemption for your charitable organization
80G registration for your charitable organization with Finlegal Forte and allow donors to claim tax deductions.
12A & 80G registartion - An Overview
In India, non-profit organizations can significantly benefit from obtaining 12A and 80G registrations under the Income Tax Act. Section 12A registration provides NGOs with income tax exemptions on their surplus funds, including donations, grants, and revenue—allowing them to utilize more funds directly for their charitable work. Section 80G registration, on the other hand, benefits donors by enabling them to claim tax deductions on their donations, thereby encouraging greater contributions to these causes. Together, these registrations not only strengthen the financial health of NGOs but also boost donor confidence and support.
Organizations eligible to apply for 12A and 80G registration include charitable trusts, registered societies, Section 8 companies, religious and educational institutions, and non-profit medical entities. To qualify for 12A registration, the organization must be engaged in charitable or religious activities, must be properly registered, and must utilize all its income solely for charitable purposes. Transparent financial records, tax compliance, and political neutrality are essential. For 80G registration, the NGO must already hold a valid 12A registration and must ensure that its benefits are available to the public at large, without discrimination based on religion or caste. Both registrations are vital in enhancing an NGO’s credibility, access to government grants, fundraising ability, and long-term sustainability. They are governed by the updated provisions under Section 12AB (post-2021 reforms), and registration is done through Form 10A, filed online with the Income Tax Department. NGOs must ensure accurate documentation, including registration certificates, PAN card, financial statements, trustee details, and activity reports, to complete the application process smoothly.
At Finlegal Forte, we simplify the process by offering end-to-end guidance for 12A and 80G registration. Our experts ensure your NGO meets all eligibility criteria and compliance requirements, making it easier for you to focus on your mission while we handle the paperwork and processes. Reach out today to make your non-profit tax-exempt and donor-friendly!
Benefits OF - 12A and 80G Registration
The benefits of obtaining 80G and 12A registrations for charitable organizations and NGOs are substantial, impacting various aspects of their operations:
- Tax Exemptions for Donors: NGOs with 80G certification can offer their donors the advantage of tax deductions on their contributions. This makes donating more attractive and can lead to increased support.
- Enhanced Credibility and Trust: Being registered under Section 12A and 80G lends an official stamp of approval from the Income Tax Department, enhancing an NGO’s credibility. This trust factor is crucial for donors and partners who seek transparency in operations.
- Increased Fundraising Potential: The tax benefits associated with these registrations encourage both individuals and corporate entities to donate more generously. This broadens the potential fundraising base, allowing NGOs to expand their activities and reach.
- Access to Government Grants: Many government programs and initiatives require NGOs to have 12A and 80G registrations to qualify for funding. This opens up numerous opportunities for grants that are critical for project financing and operations.
- Long-Term Sustainability: The ability to offer tax benefits to donors not only boosts immediate donations but also helps in building long-term partnerships, ensuring sustainable funding sources. This stability allows NGOs to plan and execute impactful, long-term projects.
- Efficient Utilization of Resources: With 12A registration, NGOs must maintain meticulous records and use their funds strictly for charitable purposes. This ensures that resources are used effectively and for the intended goals of the organization.
Documents Required for 12A and 80g registration
Here's the list covers the 12A and 80G registration documents required:
- Trust Deed/Society Registration Certificate/Section 8 Company Certificate
- Memorandum of Association and Articles of Association (for Section 8 companies only)
- PAN card of the organization
- Bank account statement of the organization
- Audited accounts of the organization for the last three years
- List of trustees/members/directors of the organization
- List of activities carried out by the organization
Frequently Asked Questions
12A registration is a certification provided under the Income Tax Act, 1961, that grants non-profit organizations tax exemption on their income, helping them maximize funds for their charitable activities
80G registration allows donors to claim tax deductions on their contributions to NGOs, encouraging more donations by providing financial benefits to the donors
12A and 80G registration is a tax provisions provided by Indian Government for Non-Profit organizations and institutions. Charitable trusts, registered societies, Section 8 companies, religious organizations, educational institutions, and medical institutions can apply for 12A and 80G registration.
The renewal of 12A and 80G registration must be completed at least 6 months before the expiry of the current registration. For example, if the registration is valid up to 31st April 2025, the renewal application should be filed on or before 30th October
No, an NGO must have 12A registration to be eligible to apply for 80G registration
Finlegal forte offers expert assistance throughout the registration process, including document preparation, application submission, and ensuring compliance with all requirements
Organizations must be engaged in charitable or religious activities, be duly registered, use income exclusively for charitable purposes, maintain proper financial records, file annual tax returns, and avoid political activities.
Organizations must operate as a non-profit, be registered under Section 12A, use funds strictly for charitable purposes, benefit a broad spectrum of society, and maintain regular financial accounts.
No, private or family trusts are ineligible for 12A registration as it is intended for public charitable trusts and NGOs