12A & 80G Registration

12A and 80G registration is crucial for non-profit organizations to operate legally, claim tax exemptions, and allow donors to avail deductions under the Income Tax Act.

What is 12A Registration?

12A registration is granted to NGOs, trusts, and charitable organizations to exempt their income from Income Tax. It allows the organization to utilize funds for charitable purposes without tax liability.

What is 80G Registration?

80G registration enables donors contributing to your NGO or Trust to claim tax deductions under Section 80G of the Income Tax Act, encouraging more donations.

Who Needs 12A & 80G Registration?

All non-profit organizations, charitable trusts, and NGOs who want to be tax-exempt and allow donors to claim deductions should apply for 12A & 80G registration.

Registration Process

• Step 1: Prepare trust/society registration documents, PAN, and financial statements.
• Step 2: Apply online or offline to the Income Tax Department for 12A registration.
• Step 3: After 12A approval, apply for 80G registration to enable donor tax deductions.
• Step 4: Respond to queries and provide additional documents if required.
• Step 5: Receive 12A & 80G certificates and maintain compliance for renewal.

Benefits of 12A & 80G Registration

• Tax Exemption: NGO income is exempt from Income Tax.
• Donor Benefits: Donations are eligible for deductions under Section 80G.
• Credibility: Enhances trust and transparency with donors and institutions.
• Funding Opportunities: Easier access to grants and CSR funding.
• Compliance: Legal recognition and adherence to Income Tax regulations.