Non-Profit organizations including trust, NGOs, section 8 Companies or societies play a crucial role in creating positive change in society. To make sure about this, it is important to utilize the tax benefits that have been provided by the government. This is where 12A and 80G Registration process online come into action. 12A and 80G Registration certificates have been issued by the Income Tax Department 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 on 12A and 80G registration certificates-
Table of Contents
12A Registration
12A registration has been obtained by the NGOs to get the tax exemptions on the income that 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 the tax deductions on contributions that 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. While 80G certificate will provide the tax benefits to donors. Here, in this section we will discuss about the benefits of 12A and 80G registration process online.
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Attract donations
If NGOs have the 80G Registration online, then donors can claim deductions o their taxable income for the amount they contributed and hence it will attract the donors to support your cause.
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Wider donor base
If you have an 80G Certificate then your organization can gain access to a broader pool of donors that includes individuals, corporates, and institutions.
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Enhanced credibility
The 12A 80G registration works as the proof of the credibility & transparency of your organization.
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Exemption from Income Tax
If you have 12A Registration online, then you non-profit organization will be exempted from paying Income tax on its earnings.
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Fund allocation facility
With Income tax exemption, your organization has a greater flexibility and you can manage & allocate funds for various projects & activities.
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Legal protections to NGOs & its members
80G and 12A registration will provides the certain legal protections to your NGO & its members and also helps in resolving disputes & conflicts within it.
Eligibility Criteria for 12A and 80G Registration Process Online
The 12A 80G Registration is only applicable to the non-profit organizations including NGOs, charitable institutions, section 8 company and societies. In this section we will discuss about the eligibility criteria of 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 of professionals like Legal Pillers. Here we will discuss the process in detail-
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Step 1: NGO Formation & Registration
Firstly, decide the legal framework from your NGO among trust, society, or section 8 Company as per the laws of your state and then formally register your organization with the relevant authority.
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Step 2: Document Collection
After that, gather all the documents that have been needed for filing the applications for 80G and 12A registration including bye laws, audited financial statements, NGO Darpan registration and mane more. These documents will work as the supporting evidence of the existence & legitimacy of your NGO.
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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 Income Tax Department. Make sure about the accurate & comprehensive details while filling the form that includes information about the activities, objectives & governing body members of your organization.
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Step 4: Submission of Application
After that, you have to submit the duly filled form 10A along with all the necessary documents at the official website of IT Department. Application submission means the formal initiation of the 12A and 80G registration process online. It is advisable to you to keep the copies of all the submitted documents for your records.
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Step 5: Review & Inspection
After successful submission of your application, 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.
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Step 6: Final decision of registration
Tax authority will make the decision of the basis of the outcomes of review & inspection. If your application meets the eligibility criteria of the registration, then you will get the 80G and 12A registration. And if any issues or discrepancy arise, then your application will be rejected. But you have the opportunity to address concerns & respond accordingly.
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Step 7: Intimation of the registration
If there is no any 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. And also allows you to avail the tax exemptions for your NGOs as well as its donors.
This is the complete & detailed process of 80G and 12A registration online. This step by step process should be followed for the successful registration under section 12A & 80G of Income Tax Act. You can navigate the complexities of the registration process, at an affordable 12A 80G registration fees, with the help of expert guidance of 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. Same goes with 12A 80G registration. If you provide the proper documents on time then, your registration process with complete smoothly and easily 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 process of registration effortlessly in just 3 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.
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Step 1: Documentation
First of all, our expert team of professionals will make sure about preparing your application accurately along with all the required documents.
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Step 2: Submission of Application
After that, we will submit your registration application to the authorities for approval.
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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
Although, 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 company, & trust. But it can be a difficult task to obtain the 12A Certificate as well as 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 in providing professional services according to your specific needs. 12A 80G registration encourage more individuals & entities to contribute in bringing the positive change in the 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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