Enquiry form
A non-profit or non-governmental organisation (NGO), a charity trust, or a Section 8 company are all eligible to apply for 80G registration and Section 12A certification. Both certifications can be used simultaneously, or they can be achieved separately. When an NGO needs to apply for both separately, it must first apply for registration under Section 12A. According to the Income Tax Act of 1961, obtaining a 12A certification is a requirement for applying for an 80G registration.
Any non-profit organisation, such as a charitable trust, religious organisation, Section 8 company, or non-governmental organisation (NGO), can claim a full exemption from income tax. The only condition is that they must be registered under Section 12A. As a result, it is critical for any NGO, trust, or association to register under Section 12A as soon as possible after incorporation. If an NGO does not get a 12A Declaration, it is required to pay income tax to the government on any excess during the year. Regardless of whether the NGO is formed as a trust, a society, or a Section 8 corporation, it must obtain a 12A certification in order to qualify for tax exemption.
Without this, the receipts shall be entitled to normal tax rates and the exemptions accessible would evade. The registration would likewise assist in looking for grants from government or associations abroad
– Income shall be exempted from taxes.
– Benefits of taking grants from the Government, Abroad, any additional agencies.
– Benefits of FCRA Registration.
80G Registration under Section 80G of Income Tax Act provides benefits towards the donor of an NGO. The donor receives monetary benefits in his taxable sum of their earnings.
Donations under Section 80G are eligible for tax deductions under certain conditions and can be broadly classified into four categories, as mentioned below.
Donations made under this category enjoy 100% tax deduction and are not subject to any qualification limit being met.
• National Defence Fund donations
• Prime Minister’s National Relief Fund
• The National Foundation for Communal Harmony,
• National/State Blood Transfusion Council.
Donations made towards these trusts qualify for 50% deduction.
• Prime Minister’s Drought Relief Fund,
• National Children’s Fund,
• Indira Gandhi Memorial Fund, etc.
Donations made to local authorities or government to promote family planning and donations to Indian Olympic Association qualify for deductions under this category.
In such cases, eligibility for deductions amount only to 10% of the donor’s Adjusted Gross Total Income.
Donations made to any local authority or the government which would then use it for any charitable purpose qualify for deductions under this category. In such cases, eligibility for deductions amounts only to 10% of the donor’s Adjusted Gross Total Income. Donations which exceed this amount are capped at 10%.
Application for registration under section 12A and 80G could be filed before the Commissioner of Income Tax (Exemption) having jurisdiction over the institution.
Yes, both applications could be applied together or it could be also applied separately. If some organization is willing towards applying both applications separately, the application for registration u/s 12A is required to be applied first. Getting 12A registration is necessary for applying application for registration u/s 80G of Income Tax Act.
Application for registration under section 12A and 80G could be applied just after registration of the NGO.
If an application for registration under section 12A and 80G would be applied through NGO factory, it should take 3-4 months.
12A registration: no expiry; 80G registration: 1to 3 years validity