{"id":52017,"date":"2023-01-27T17:25:11","date_gmt":"2023-01-27T11:55:11","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=52017"},"modified":"2024-09-16T15:26:02","modified_gmt":"2024-09-16T09:56:02","slug":"how-do-i-obtain-80g-and-12a-certificates-for-my-ngo","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-do-i-obtain-80g-and-12a-certificates-for-my-ngo\/","title":{"rendered":"How Do I Obtain 80G And 12A Certificates For My NGO?"},"content":{"rendered":"\n<p>The procedure of obtaining 80G and 12A certificates is required for charitable trusts and institutions in order to be eligible for tax exemptions under the Income Tax Act 1961. Donors can claim tax deductions for the donations given to the NGO. And can also exempt them from paying taxes on its revenue.&nbsp; NGOs or Non-Governmental organizations are eligible for certain tax exemptions and benefits in India. NGOs or Non-Governmental organizations are critical to the growth and welfare of the society. These organizations are often non-profit and run independently of the government; they are committed to helping a specific cause in the community. It is crucial that these companies receive <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/80g-and-12a-registration\">80G and 12A certificates<\/a><\/strong> from Income Tax Department in order to verify their credibility and legitimacy. For getting 80G registration, 12A registration is a compulsory part.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-do-i-obtain-80g-and-12a-certificates-for-my-ngo\/#What_Is_An_80G_And_12A_Certificates\" >What Is An 80G And 12A\nCertificates?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-do-i-obtain-80g-and-12a-certificates-for-my-ngo\/#What_is_12A_Certificate\" >What is 12A Certificate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-do-i-obtain-80g-and-12a-certificates-for-my-ngo\/#Benefits_of_Obtaining_80G_and_12A_Certificates\" >Benefits of Obtaining 80G and\n12A Certificates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-do-i-obtain-80g-and-12a-certificates-for-my-ngo\/#Conditions_to_Be_Fulfilled_To_Be_Eligible_To_Obtain_80G_and_12A_Certificates\" >Conditions to Be Fulfilled To\nBe Eligible To Obtain 80G and 12A Certificates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-do-i-obtain-80g-and-12a-certificates-for-my-ngo\/#Application_Process_for_Obtaining_an_80G_and_12A_Certificates\" >Application Process for\nObtaining an 80G and 12A Certificates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-do-i-obtain-80g-and-12a-certificates-for-my-ngo\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_An_80G_And_12A_Certificates\"><\/span>What Is An 80G And 12A\nCertificates?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>80G\nCertificate:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The income Tax Department of India issues an 80G certificate toNon-Governmental\norganizations (NGOs) that are registered as trusts or societies. With the help\nof this certificate, donors can claim tax exemptions on their donations made to\nthe NGO. This indicates that a donor can deduct the amount of their donations\nfrom their income taxes when they give to an NGO that has an 80G certificate.<\/p>\n\n\n\n<p>Section 80G of the Income Tax Act of 1961 authorizes the\nissuance of an 80G certificate. By offering them a tax advantage, this\ncertificate seeks to persuade people and corporations to donate to qualified\nNGOs. The goal of this tax deduction is to promote more significant donations\nto the NGO, which may then be put towards a variety of causes and initiatives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_12A_Certificate\"><\/span>What is 12A Certificate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>12A registration is the initial step for non-profit organizations\nto obtain an exemption from the internal revenue service. 12A registration\nprovides as an official proof of the NGO\u2019s existence and assists it in\nreceiving clearance from governments as well as an international organization.<\/p>\n\n\n\n<p>The NGOs or <strong><a href=\"https:\/\/corpbiz.io\/ngo-registration\">Non-Governmental Organization<\/a><\/strong> also have incomes; if they are not registered under section 12A of the income tax act, they must pay the taxes at the regular rates.12A exempts from paying income tax based on the registration, trusts, NGOs, and other section 8 entities. NGOs. It is a one-time registration, and it exempts from paying income tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Obtaining_80G_and_12A_Certificates\"><\/span>Benefits of Obtaining 80G and\n12A Certificates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nfollowing are the benefits of obtaining 80G and 12A Certificates:<\/p>\n\n\n\n<ul>\n<li><strong>Tax Benefits<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>One of the primary advantages of an 80G certification is that it\nenables contributors to deduct the donations from their taxes. Section 80G of\nthe Income Tax Department allows for tax exemptions for donations made to\norganizations that have earned their 80G certifications.<\/p>\n\n\n\n<ul>\n<li><strong>&nbsp;Trust and Credibility<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>Donors are more likely to trust and believe in an organization\nthat has earned an 80G accreditation. This helps to attract more support and\ndonations to the organization\u2019s cause.<\/p>\n\n\n\n<ul>\n<li><strong>Increased Visibility<\/strong>:&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The <strong>income Tax Department\u2019s<\/strong> website lists the 80G recognized organizations which can help people find and learn about the work they do.<\/p>\n\n\n\n<ul>\n<li><strong>Eligibility of\nGovernment Grants<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>The 80G certified organizations are the only ones eligible for\nseveral government grants and programmes. Getting an 80G certification may lead\nto more financing and assistance options.<\/p>\n\n\n\n<ul>\n<li><strong>Improved\nAccountability and Transparency<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>Organisations with an 80G certificate are required to submit\nfrequent reports and keep accurate financial and activity records. This\npromotes openness and accountability in the utilization of funds.<\/p>\n\n\n\n<ul>\n<li><strong>Reputation and\nPrestige<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>The 80G certification is a prestigious achievement for an\norganization and can assist in increasing its credibility and reputation.<\/p>\n\n\n\n<ul>\n<li><strong>Long-Term\nSustainability<\/strong>:&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Because of the 80G certified organizations have access to a\nconsistent flow of financing and assistance; they are more likely to be\nsustainable in the long run.<\/p>\n\n\n\n<ul>\n<li><strong>Help In Achieving The\nOrganizational Goal<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>Given the increased resources at their disposal, organizations\nwith 80G certification may accomplish their objectives more quickly and\nefficiently.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Contribution To Social\nWelfare<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>Organizations that have earned the 80G certificates are\nrecognized for their efforts to improve society by receiving the certification.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_to_Be_Fulfilled_To_Be_Eligible_To_Obtain_80G_and_12A_Certificates\"><\/span>Conditions to Be Fulfilled To\nBe Eligible To Obtain 80G and 12A Certificates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some conditions that need to be fulfilled to obtain 80G and 12A\nCertificates:<\/p>\n\n\n\n<ol>\n<li>The\n     Non-Governmental Organisations (NGOs) must be registered as a\n     trust\/society.<\/li>\n\n\n\n<li>The\n     Non-Governmental Organization (NGOs) must be legally registered in\n     accordance with the Societies Registration Act of 1860, or under Section\n     25 of the Companies Act, or under any other relevant laws.<\/li>\n\n\n\n<li>Non-Governmental\n     organizations (NGOs) must have a specific purpose\/goal. The NGO should be\n     actively involved in achieving this aim.<\/li>\n\n\n\n<li>The\n     Non-Governmental Organisations (NGOs) should not be established under any\n     political or commercial purpose.<\/li>\n\n\n\n<li>The\n     Non-Governmental organizations (NGOs) must only use the donations for\n     charitable purposes only.<\/li>\n\n\n\n<li>No\n     income of the Non-Governmental Organization (NGO) should be exempted.<\/li>\n\n\n\n<li>If\n     the Non-Governmental Organization (NGO) has some income generated from the\n     business, then there should be separate books of accounts.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_Process_for_Obtaining_an_80G_and_12A_Certificates\"><\/span>Application Process for\nObtaining an 80G and 12A Certificates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the application process for obtaining an 80G and 12A Certificates:<\/p>\n\n\n\n<ul>\n<li><strong>Process\nfor Obtaining 80G Certificate:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The application for the 80G certificate is processed by the\nCommissioner of the Income Tax Department. After which, a thorough and detailed\ninspection is carried out by the Income Tax Department. The documents that are\nrequired for the 80G certificate registration are as follows:-<\/p>\n\n\n\n<ol>\n<li>MoA\/Trust\n     deed &#8211; if the organization is registered as a trust.<\/li>\n\n\n\n<li>Registration\n     certificate<\/li>\n\n\n\n<li>Form\n     10G<\/li>\n\n\n\n<li>A\n     list of all the donors that are contributing to the organization<\/li>\n\n\n\n<li>All\n     the necessary documents of the Income Tax Returns and the progress reports\n     of the last three years.<\/li>\n\n\n\n<li>A\n     list of the Board of Trustees<\/li>\n\n\n\n<li>Copy\n     of PAN Card&nbsp;<\/li>\n\n\n\n<li>The\n     No Objection Certificate by the owner of the property where the organization\n     is established.<\/li>\n\n\n\n<li>The\n     copy of the House Tax Receipt, Electricity Bill or Water Bill.<\/li>\n<\/ol>\n\n\n\n<p>The commissioners can also further ask for some additional\ndocuments if required for further inspection.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Application\nProcess For Obtaining A 12A Certificate:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The documents that are required for the 12A certificate\nregistration are as follows:-<\/p>\n\n\n\n<ol>\n<li>Form\n     10A<\/li>\n\n\n\n<li>MoA\/AoA\/Trust\n     Deed (evidence of the creation of the NGO\/Trust)<\/li>\n\n\n\n<li>The\n     financial accounts for the last three years<\/li>\n\n\n\n<li>PAN\n     Card<\/li>\n\n\n\n<li>If\n     the company is incorporated under section 8 of the Companies act, then it\n     needs to submit a certificate of incorporation along with MoA and AoA\n     copies.<\/li>\n<\/ol>\n\n\n\n<p>The applicant has to file Form 10A. After which, the\nCommissioner will verify the documents and do a thorough inspection. If the\nCommissioner sees it necessary, he may also ask for some other additional\ndocuments. If the Commissioner is satisfied with everything, then he grants the\ncertificate. The 12A certificate can be cancelled anytime if it is found that\nthe organization is not following any of the prescribed rules and\nregulations.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In conclusion, acquiring 80G and 12A certificates is an essential step in assuring an NGO\u2019s validity and reputation. These certificates, which the income tax department gives, are required to show their legitimacy as legally recognized organizations and qualify for the contributors\u2019 tax advantages. The Trust and confidence of the contributors, volunteers and other stakeholders may increase as a result. Additionally, possessing these credentials helps enhance the NGO\u2019s accountability and openness. It demonstrates that the NGO is dedicated to abiding by the local rules and regulations, and the donations and income are used for the intended objectives. The NGO may become more trustworthy and reputable as a result of increasing its transparency with the general public. Like every coin has two sides, there are also some drawbacks to this provision. These tax exemptions are only limited to Indian laws, so there might be a possibility that other countries have different rules and regulations regarding the same matter. The income tax department has the power to revoke the certifications anytime they want if they find that the institutions are not complying with the prescribed rules and regulations.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-are-the-benefits-of-12a-and-80g-registration\/\">What Are The Benefits Of 12A And 80G Registration?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The procedure of obtaining 80G and 12A certificates is required for charitable trusts and institutions in order to be eligible for tax exemptions under the Income Tax Act 1961. Donors can claim tax deductions for the donations given to the NGO. And can also exempt them from paying taxes on its revenue.&nbsp; NGOs or Non-Governmental [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":52020,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[3032],"acf":{"service_id":"407"},"authorName":"Shreya Patel","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/01\/MicrosoftTeams-image-41.jpg","authorDescription":"I have completed B.A.LL.B (Hons) from The Maharaja Sayajirao University, Baroda. I have also done a Diploma in Cyber Law and currently pursuing a post graduation diploma in IPR from GNLU.I am an avid researcher. My interest areas are Labour Law, Cyber law and Intellectual Property rights law.","postViews":3381,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52017"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=52017"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52017\/revisions"}],"predecessor-version":[{"id":66117,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52017\/revisions\/66117"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/52020"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=52017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=52017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=52017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}