12A-80G Registration

80G-12A Registration and compliance services ₹15000

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Introduction to 12A and 80G Registration

In India, the 12A and 80G registrations are provisions under the Income Tax Act, 1961, that provide tax exemptions to charitable trusts and institutions. These registrations are crucial for organizations engaged in philanthropic activities, as they offer benefits such as exemption from income tax, making it easier for them to raise funds and carry out their charitable objectives.

Advantages of 12A and 80G Registration:

Tax Exemption

The primary advantage is the exemption from income tax. Donors contributing to organizations with 80G registration can avail deductions on their taxable income.

Increased Credibility

Registration under 12A and 80G enhances the credibility of the organization. It signifies that the trust or institution is recognized and approved by the government for carrying out charitable activities.

Attracts Donors

Many donors prefer contributing to organizations with 80G registration as it ensures the transparency of the organization's financial transactions and the legitimacy of their charitable activities.

Eligibility for Government Grants

Registered organizations may become eligible for various government grants and schemes, further supporting their charitable endeavours.

Procedure for 12A and 80G Registration

Application Preparation

Create a Trust or Society:  Ensure your organization is legally constituted as a trust or society.

Prepare Trust Deed or Memorandum and Articles of Association:   Draft a document outlining the objectives, activities, and governing rules of the organization.

Prepare Income and Expenditure Projections:  Provide details of the proposed income and expenditure for the next three years.

 

Application Submission

Apply for 12A Registration: Submit the application to the Commissioner of Income Tax (Exemptions) using Form 10A..

Wait for Approval: The Commissioner will examine the application, and upon satisfaction, issue the 12A registration certificate.

 

Application for 80G Registration

Apply for 80G Registration: After obtaining 12A registration, apply for 80G using Form 10G.

Verification: The Commissioner will assess the genuineness of the activities and may request additional information.

Issue of Certificate:Upon approval, the organization will receive the 80G registration certificate.

Documents Required for 12A and 80G Registration:

Trust Deed or Memorandum and Articles of Association.

PAN Card of the organization.

Address proof of the registered office.

Details of trustees or members.

Income and expenditure projections.

Audited accounts and balance sheets for the past three years (if applicable).

FAQs Regarding 12A and 80G Registration

Can foreign donations be accepted with 80G registration?

Yes, organizations with 80G registration can accept foreign contributions.

Is 80G registrations perpetual or does it need renewal?

80G registrations are usually granted perpetually, but the authorities may review the organization's activities periodically.

Can religious organizations apply for 80G registration?

Generally, organizations primarily involved in religious activities may not qualify, but those engaged in educational or medical relief may be eligible.

How long does it take to obtain 12A and 80G registration?

The processing time varies, but it typically takes a few months from the date of application submission.