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All About 12A and 80G Registration Process Online

Non-profit organizations, including trusts, NGOs, section 8 Companies, or societies, play a crucial role in creating positive change in society. To make sure of this, it is essential to utilize the tax benefits that have been provided by the government. At this point, the 12A and 80G Registration process online comes into action. The Income Tax Department has issued 12A and 80G Registration certificates to the NGO, like a charitable trust or section 8 registrations. Legal procedures & tax compliance to obtain 12A and 80G registration for your non-profit organizations can be a difficult task.

Let’s take a quick glimpse at 12A and 80G registration certificates-

12A Registration

The NGOs have obtained 12A registration to get the tax exemptions on the income they earn from grants, donations, and other forms of unconditional contributions. So, to avail these tax exemptions, NGOs have to obtain the 12A Certificate from the Income Tax Department.

80G Registration

80G registration has been obtained by the NGOs so that their donors can claim tax deductions for contributions made by them to such organizations. However, 80G registration encourages more & more donations for NGOs to support their welfare activities. To avail these benefits, NGOs have to obtain the 80G Certificate from the IT Department. NGOs can obtain 80G registration only after obtaining 12A Registration.

Benefits of 12A and 80G Registration Process Online

If an applicant wants to establish an NGO, then they should have to apply for the 80G and 12A Registration. It will be beneficial for the organizations as well as the donors. 12A Certificate will provide the benefits of tax exemptions to the organizations. At the same time, the 80G certificate will provide tax benefits to donors. Here, in this section we will discuss the benefits of the online 12A and 80G registration process.

  • Attract donations

If NGOs have the 80G Registration online, then donors can claim deductions of their taxable income for the amount they contributed, and hence, it will attract the donors to support your cause. 

  • Wider donor base

If you have an 80G Certificate, your organization can access a broader pool of donors, including individuals, corporations, and institutions.

  • Enhanced credibility

The 12A 80G registration works as the proof of the credibility & transparency of your organization.

  • Exemption from Income Tax

If you have 12A Registration online, then your non-profit organization will be exempted from paying Income tax on its earnings.

  • Fund allocation facility

With Income tax exemption, your organization has greater flexibility, and you can manage & allocate funds for various projects & activities.

  • Legal protections for NGOs & their members

80G and 12A registration will provide certain legal protections to your NGO & its members and also help in resolving disputes & conflicts within it.

Eligibility Criteria for 12A and 80G Registration Process Online

The 12A 80G Registration is only applicable to non-profit organizations, including NGOs, charitable institutions, section 8 companies, and societies. In this section, we will discuss the eligibility criteria for the 12A and 80G registration process online. Organizations are eligible to get 12A certificate & 80G Certificate only if –

  • They don’t earn money from any business
  • It is a charitable trust or society
  • They maintain a daily book of expenses & receipts.
  • They are not using money or assets for other than charitable purposes
  • Members of the organizations should not have unjust profit from the funds
  • If it should not work for any particular caste or religious group
  • If the donations made to the organizations have not been used for business purposes

Steps Include in 12A and 80G Registration Process Online

12A and 80G registration process online can be difficult & tricky. You can navigate this complex process with the help of expert guidance from professionals like Legal Pillers. Here, we will discuss the process in detail-

  • Step 1: NGO Formation & Registration

Firstly, decide the legal framework of your NGO, including trust, society, or section 8 Company, as per the laws of your state, and then formally register your organization with the relevant authority.

  • Step 2: Document Collection

After that, gather all the documents that have been needed for filing the applications for 80G and 12A registration, including bylaws, audited financial statements, NGO Darpan registration, and many more. These documents will work as the supporting evidence of the existence & legitimacy of your NGO.

  • Step 3: Application Preparation

Then, you have to complete the official application form 10A to seek the registration u/s 12A & 80G of the Income Tax Act. You can get the form 10A from the official website of the Income Tax Department. Make sure about the accurate & comprehensive details while filling out the form that includes information about the activities, objectives & governing body members of your organization.

  • Step 4: Submission of Application

After that, you have to submit the duly filled out form 10A along with all the necessary documents to the official website of the IT Department. Application submission means the formal initiation of the 12A and 80G registration process online. Keep the copies of all the submitted documents for your records.

  • Step 5: Review & Inspection

After the successful submission of your application, the tax authority will review its content and verify whether your organization aligns with the conditions of 12A 80G registration or not. They can conduct the inspection of the activities of your organization and also the financial records to make sure about the compliance & authenticity.

  • Step 6: Final decision of registration

The tax authority will make the decision on the basis of the outcomes of the review & inspection. If your application meets the eligibility criteria for registration, then you will get the 80G and 12A registration. And if any issues or discrepancies arise, then your application will be rejected. But you have the opportunity to address concerns & respond accordingly.

  • Step 7: Intimation of the registration

If there is no issue or discrepancy, then your registration process is complete, and you will get the official registration certificate of 12A & 80G from the tax authority. This certificate will confirm that your NGO is eligible for the tax exemption u/s 12A & 80G of the Income Tax Act. It is a crucial document as it establishes the legitimacy of your organization. It also allows you to avail the tax exemptions for your NGOs as well as their donors.

This is the complete & detailed process of 80G and 12A registration online. This step-by-step process should be followed for successful registration under sections 12A & 80G of the Income Tax Act. You can navigate the complexities of the registration process at an affordable 12A 80G registration fee with the help of expert guidance from professionals like Legal Pillers. 

Documents Required for 12A and 80G Registration Process Online

To complete any legal procedure accurately & effortlessly, it is crucial to provide the essential documents. The same goes for 12A 80G registration. If you provide the proper documents on time, then your registration process will be completed smoothly and efficiently without any hassles. So, here in this section of the blog we will tell you about the necessary documents that have been required for the successful 80G and 12A registration. Here are the documents

  • Copy of PAN of the NGO
  • Aadhaar Card & PAN Card of partners
  • Email ID & Contact Number
  • Income Tax Login
  • Certificate of incorporation & MOA (in case of Section 8 Company)
  • Trust deed & Bye-laws (in case of a trust)
  • Audited Balance Sheet
  • Certificate of previous registration (if any)
  • Bank account statements
  • Proof of the registered address of the organization
  • List of donors along with their complete details, if any
  • Details of the donations (if received)
  • FCRA Registration Certificate (if applicable)
  • NGO Darpan ID, if any

12A and 80G Registration Process Online by Legal Pillers

Legal Pillers is your trusted partner for 12A 80G registration in India. We will complete the registration process effortlessly in just three steps at the best competitive 12A and 80G registration fees. You don’t need to search for the best services, as Legal Pillers is here to help you.

  • Step 1: Documentation

First of all, our expert team of professionals will make sure to prepare your application accurately along with all the required documents.

  • Step 2: Submission of Application

After that, we will submit your registration application to the authorities for approval.

  • Step 3: Confirmation

After the satisfactory review, you will get an order of granting the 12A Certificate as well as 80G Registration by the authorities.

Final Words

However, it will be beneficial for both organizations as well as donors to get the 80G and 12A Registration Online for the NGOs, including charitable institutions, section 8 companies, & trusts. However, it can be a difficult task to obtain the 12A Certificate as well as the 80G certificate. But you don’t need to worry! Legal Pillers is here to help you at every step. Our CA/ CS experts have the expertise to provide professional services according to your specific needs. 12A 80G registration encourages more individuals & entities to contribute to bringing positive change in society.

So, what are you waiting for? Choose Legal Pillers as your trusted partner for utilizing the tax benefits that have been provided by the government and get the successful 80G and 12A registration.

 

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