80G-12A Registration

80G-12A Registration

80G-12A Registration in Rajasthan- INDIA and compliance services.

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NGO Registration

Introduction of 80G-12A Registration

Under the Income Tax Act 1961, certain contributions or donations are eligible for tax deduction under Section 80G certificate. NGOs and other non-profit organizations must register and confirm with the Income Tax Department to obtain such certificates. The 80G certificate is to encourage more and more donors to donate funds to such organizations. The advantage that a donor gets by donating to such an NGO is that he gets a tax exemption on 50% of his donation because the donor can deduct his donations from his gross total income.

Trusts, NGOs, and other businesses are excluded from section 8 income tax under 12A registration. In essence, NGOs are associations created for humane and non-profit purposes. However, unless they are registered under Section 12A of the Income Tax Act, they have income and would be required to pay tax at regular rates. Religious and charitable trusts are not distinguished in Section 12A of the IT Act, 1961. Therefore, both kinds of organizations must be registered under 12A.

Sunil Sharma & Associates provides seamless services for 80G registration due to our team of dedicated professionals. You may contact us at +91 90797 59095 or email cssunil93@gmail.com for 80G 12A Registration and compliance services.

Benefits of 80G Registration

Increases Credibility

80G registration makes your NGO a promising prospect by increasing the credibility of the organization and the reliability of those associated with it.

Tax Benefit

80G registration effectively allows the NGO donor to not only feel good about donating to a cause but also incentivizes them for the tax benefit of reducing their taxable income.

Promote Donation

80G registration attracts donors to donate.

Tax Exemptions to Organization

An organization can receive up to a 10% tax exemption on gross income generated through donations and funds.

Benefits of 12A Registration

Tax Exemption

The income of non-governmental organizations is exempt from taxes

Governmental Support

NGOs will be eligible to apply for grants from any domestic and international government agency.

Proof of Existence

This certificate would serve as a legally binding declaration of the registered status of the entity to the government.

Eligibility for the 80G Deduction

For approval under section 80G, the following requirements must be met:

  • An NGO should not have any income from any non-tax-exempt source, such as business income. If the NGO has any income from a business, then a separate book of accounts should be maintained and any donations received for such business should not be misused.
  • The objectives of NGOs should not contain any provisions regarding the expenditure of NGO income or assets for non-charitable purposes, i.e. they should not contravene any prescribed activity.
  • The NGO does not work specifically for the benefit of any religious community or caste.
  • A trust, company, or not-for-profit company keeps regular accounts of its income, and expenditure and regular audits are carried out when necessary.
  • The NGO is registered under the Societies Registration Act, 1860, or under any applicable law corresponding to that Act or is registered under section 25 of the Companies Act, 2013. It is renewed by the competent authority in due course.

Conditions to be fulfilled under Section 80G

The following conditions must be met for 80G registration:

  • The NGO should not have any non-exempt income such as business income. If an NGO has income from a business, it should keep separate books of accounts and should not deduct donations received for such business.
  • The NGO is duly registered under the Societies Registration Act 1860 or under any law equivalent to that Act or is registered under section 8 of the Companies Act 2013.
  • The NGO does not work for the benefit of a particular religious community or caste.
  • The non-governmental organization keeps regular accounting of its income and expenses.
  • The statutes or objectives of non-governmental organizations should not contain any provision for spending the income or property of the non-governmental organization for purposes other than charity.

Eligibility for 12A Registration

Below is the eligibility criteria for 12A registration:

  • The property of NGOs should be used only for charitable purposes
  • NGOs working as Public Charitable Trusts or U/s 25 of the Companies Act, 2013 working only for public welfare are allowed for this provision;
  • NGOs should properly keep books of account of their expenses and income;
  • Donation as permitted u/s 80G is allowed for tax exemption.

Documents Required

Documentation required for 80G Registration

  • Application in Form 10G
  • Trust Deed or MoA (Memorandum of Association)
  • Certificate of Registration
  • Audited Financial Statements
  • PAN Card
  • Statement of Planned Income and Expenditure
  • Details of the organization's activities
  • Details of Board Members (Names, addresses, and PAN card copy).

Documentation required for 12A Registration

  • Documentary evidence of the creation of a trust or NGO (Trust Deed; Certificate of Registration and Memorandum of Association of the Company).
  • According to Section 8, companies must submit an extract from the commercial register and copies of the company's MoA and AoA.
  • Form 10A
  • A three-year statement from the Trust's bank account.
  • PAN organization.

Recent Notification on 80G Registration

The Department has extended the due date to November 25, 2022, for fully non-compliant trusts or institutions that have not filed a 10A by March 31, 2022. In some cases, partial compliance (that have already filed a 10A before 31 March 2022) did not file Form 10AB due to reasons beyond their control, and therefore the Income Tax Department sought to deny exemption of 80G purely on technical grounds.

Procedure for 80G-12A Registration in Rajasthan- INDIA

1. Filling out the application provided by us : First, we ask you to fill out a simple questionnaire that will be provided to you by our team.
2. Processing of documents : In the second step, we will request the documents according to the questionnaire you filled in, so that we can arrange them according to the request and for processing.
3. Application for DSC : It is necessary to prepare a DSC (Digital Signature Certificate consisting of E-signatures) which will take approximately 1-2 days.
4. Availability of Name : The name should be unique in nature and not similar to the name of any other registered entity.
5. Electronic application to establish a company : Once the name is approved, an online application through SPICE+ is required to be submitted along with the required documents obtained above and the same is to be submitted to the ROC. Both the Memorandum of Association and the Article of Association must be drafted with prudent care, keeping in mind the main objective of the 80G registration. This process again takes 2-3 days.
6. Get a certificate of incorporation : Finally, upon approval, a Certificate of Incorporation will be provided by email, signifying that the company has been incorporated.