80G and 12A Registration An Overview
In India, 80G and 12A registration are considered relevant for non-profit organizations seeking healthy tax benefits. Indian NGOs strive to register for both to maximize the benefits for themselves and their donors.
80G Registration
Non-governmental organisations (NGOs) - trust, society or Section 8 Company run on funds received through different sources of donations. All NGOs are eligible to apply for 80G certification. 80G registration falls under the purview of section 80G of the Income Tax Act of 1961. It benefits the donors in part or full by exempting them from paying taxes on their donations made to a registered NGO.
12A Registration
All non-governmental organisations (NGOs) are engaged in social endeavours through charity work. While they run their daily operations through donations, they do sometimes earn income as per the law. However, NGOs that are not registered under Section 12A of the Income Tax Act of 1961 have to pay taxes. However, NGOs with 12A registration are exempt from paying taxes on their income.
What are the Requirements for 80G and 12A Registration?
Having 80G and 12A registration certificates makes an NGO more appealing for the purpose of funding. The requirements for 80G and 12A Registration are:
Who is Eligible for Tax Savings under 80G?
What are the Documents Required for 80G and 12A Registration?
12A Registration
The main objective of 12A registration is to attain an exception from income tax payment. Here is a checklist of documents required for 12A registration:
80G Registration
80G registration creates a route for donors to enjoy tax deduction benefits. Here is a checklist of documents required for 80G registration:
What Is the Procedure for 80G and 12A Registration?
The 80G and 12A registration process is simple and free of complexities in any form with the right guidance. Given below is the stepwise guide for 12A registration-
In recent times, 80G and 12A registrations have grabbed the spotlight. Given below is the step-by-step guide for 80G Registration:
What are the Benefits of 80G and 12A Registration?
80G and 12A registration are known for building credibility and ensuring trust. The significant benefits of 12A registration for NGOs are:
80G registration is a pathway to reduction in the tax burden. The key benefits of 80G registration for NGOs are:
Recent Update
As per the recent notification, all existing NGOs registered under Section 80G and 12A now have to re-register themselves under section 12A and 80G to avail tax exemptions. NGOs wanting to avail CSR Funding will now have to register Form CSR-1.
Recently Introduced Terms for Registration and Re-Registration under section 80G and 12A
The Re-Authorization Process Timeline
Highlights of the re-authorization process:
Documents Required for Re-Authorization
There are a bunch of essential documents needed for the successful re-authorization. Here is a checklist of documents required for re-authorization:
80G and 12A Registration Fee
80G and 12A registration fees depends on various factors. Corpbiz is a professional team with expertise in 80G and 12A Registration. Our business consultants work in a customer-centric environment offering end-to-end services. The total registration fee is in the range of INR 8,999 to 12,999. This fee is exclusive of GST.
Timeline for 12A and 80G Registration
Subject to the submission of the application, validation of documents and approval, obtaining 12A and 80G registration, the entire process takes about 20 to 30 working days. Our team helps with the application filing that takes anywhere between 5 to 10 working days.
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Frequently Asked Questions
80G and 12A are two different kinds of registrations granted by the Income Tax department to NGOs working for charitable causes. These registrations help them avail tax benefits for their organisation as well as the donors.
12A specifies that all NGOs registered u/s 12A can avail tax exemptions on the donations received.
Section 80G benefits the donors donating to the NGO registered u/s 80G and they can avail tax deductions on the donated amount.
Yes, you can apply for 80G and 12A online through Corpbiz. Submission of the required documents is a must to proceed with the application.
Yes, unlike previously, 12A and 80G registrations now come with a validity. Provisional registration validity stands at 3 years. Validity for re-validation is 5 years. Earlier, 12A and 80G were valid for lifetime.
Donors can now avail 50% to 100% tax exemptions on the donations made to registered NGOs.
The eligibility criteria to register for 12A and 80G are:
- NGO must be a registered entity.
- NGO should not source income from any business.
- NGO must maintain an updated book of accounts for receipts and expenses.
Yes, an NGO can apply for both 12A and 80G applications together. However, the application for 12A will be considered first if the entity choses to apply both together.