Registration under section 12A and 80G of Income Tax Act
Both applications can be applied together or it can also be applied separately also. If some organization is willing to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration is must for applying application for registration u/s 80G of Income Tax Act, 1961.
PROCEDURE FOR REGISTRATION:-
Step-1: Dully filled-in application will be submitted to the exemption section of the Income Tax Department.
Step-2: NGO will receive notice for clarifications from Income Tax Department in 2-3 months after applying.
Step-3: Reply of notice will be submitted by the consultant along with all relevant desired documents to the Income Tax Departments.
Step-4: Consultant will personally visit the Income Tax Departments to follow-up the case on behalf of the applicant organization.
Step-5: Exemption Certificate will be issued.
Documents required for registration u/s 12A AND 80G:
- Dully filled in Form – 10A for registration u/s 12A registration;
- Dully filled in Form – 10G for registration u/s 80G registration;
- Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head);
- NOC from Landlord (where registered office is situated);
- Copy of PAN card of NGO;
- Electricity Bill / House tax Receipt /Water Bill (photocopy);
- Evidence of welfare activities carried out & Progress Report since inception or last 3 years;
- Books of Accounts, Balance Sheet & ITR (if any), since inception or last 3years;
- List of donors along with their address and PAN;
- List of governing body board of trustees members with their contact details;
- Deed for verification Original RC and MOA /Trust;
- Authority letter in favor of NGO Factory;
- Any other document/ affidavit / undertaking information asked by the Income Tax department.
| Questions | Remarks |
| What is Section 12-A of Income Tax Act? | Income of an organization is exempted if NGO has 12-A registration. This is one time registration. |
| What is section 80-G of Income Tax Act? | If an organization has obtained certification under section 80-G of Income Tax Act then donors of that NGO can claim exemption from Income Tax. This is not one time registration. This need to get renewed after validity period. |
| When an organization can apply for registration under section 12A and 80G of Income Tax Act? | Application for registration under section 12A and 80G can be applied just after registration of the NGO. |
| Where to apply for registration under section 12A and 80G of Income Tax Act? | Application for registration under section 12A and 80G can be applied to the Commissioner of Income Tax (Exemption) having jurisdiction over the institution. |
| Can both the application under section 12A and 80G of Income Tax Act be applied together? | Yes, Both applications can be applied together or it can be also applied separately. If some organization is willing to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration must for applying application for registration u/s 80G of Income Tax Act. |
| What is the timeline for getting registration under section 12A and 80G of Income Tax Act? | If application for registration under section 12A and 80G will be applied through NGO factory, it should take 3-4 months. |
| What applications Form are being used for applying for registration under section 12A and 80G of Income Tax Act? | For 12A registration : Form 10AFor 80G registration : Form 10G ( For New Application and renewal both) |
| What is the validity period of the registration under section 12A and 80G of Income Tax Act? | 12A registration: Lifetime validity80G registration: 1to 3 years validity |
| What are the conditions on section 80G? | There are few conditions on section 80G:· The NGO should not have any Income which is not exempted, such as business income. If the NGO has business income then it should maintain separate books of account and should not divert donations received for the purpose of such business.· The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of NGO for the purpose other than charitable. · The NGO should not work for the benefit of particular religious community or caste. · The NGO should maintain regular accounts of receipt & expenditure. · The NGO should properly register under the societies Regulation Act 1860 or under any law corresponding to that Act or should register under section 25 of the Companies Act 1956. |
| What is the Tax Exemption Limit on donation? | There is a limit on how much money can be exempted from the Income Tax:· If the amount of deduction to a charitable organization or trust is more than 10% of the gross total Income computed under the Act (as reduced by income on which income tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G.· The persons or organizations who donate under section 80G gets a deduction of 50% from their taxable Income. |
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