SEC 80G & SEC 12A

What are Section 80G & 12A Registrations? 

These sections provide tax benefits for NGOs (Non-Governmental Organizations) functioning for charitable purposes. Let's break them down: 

  • Section 12A: Grants complete tax exemption on the income earned by your NGO from eligible donations and grants. 
  • Section 80G: Empowers your donors to claim tax deductions on their contributions made to your NGO (up to a specific limit). 

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 Benefits of  Section 80G & 12A Registration

  • Financial Boost: Save significant tax for your NGO, allowing you to allocate more funds towards your cause. 
  • Donor Attraction: 80G registration makes your NGO more appealing to donors seeking tax benefits while contributing. 
  • Enhanced Credibility: Registration signifies adherence to government regulations, fostering trust and transparency. 
  • Eligibility for Government Grants: Certain government schemes prioritize NGOs with 80G registration. 

Process for Registration

  1. Eligibility Check: Ensure your NGO meets the criteria set forth by the Income Tax Act. 
  2. Document Preparation: Gather necessary documents like Trust Deed/Society Registration Certificate, PAN Card, Activity Reports, etc. 
  3. Online Application: Submit the application electronically through the Income Tax Department portal. 
  4. Scrutiny & Approval: The department will scrutinize your application and approve it if deemed compliant.

Drawbacks (to Consider) 80G &12A registration

  • Detailed Documentation: The application process requires compiling various documents. 
  • Scrutiny & Potential Delays: Applications undergo scrutiny, and delays can occur. 
  • Renewal Requirements: Registrations need renewal periodically (usually every 3 years). 

What are the necessary documents Required for 80G and 12A 

  • Trust Deed/Society Registration Certificate 
  • Memorandum of Association (MOA) / Rules & Regulations 
  • PAN Card of the NGO 
  • Audited Financial Statements (if applicable) 
  • Activity Reports 
  • List of Governing Body Members 
  • Proof of Address 

Eligibility Checklist: 

  • Must be a registered NGO (Trust/Society/Section 25 Company) 
  • Engaged in charitable activities like education, healthcare, rural development, etc. 
  • Maintains proper accounts and submits financial statements 
  • Not established for religious purposes (unless solely for charitable activities) 
Additional Information: 

  • For a more detailed understanding of eligible activities and exclusions, refer to the Income Tax Act. 
  • Consider consulting a tax professional for specific guidance on your NGO's situation. 

Why Choose 24efiling for Your 80G & 12A Registration? 

  • Streamlined Process: We simplify the application process, saving you valuable time and effort. 
  • Expert Guidance: Our tax professionals ensure your application meets all compliance requirements. 
  • Error-Free Submissions: We meticulously review your application to minimize the risk of rejection. 
  • Dedicated Support: We provide ongoing support throughout the process and address your queries promptly.

Looking to empower your NGO through tax exemptions and attract valuable donors? Look no further than Section 80G and 12A registrations offered by the Income Tax Department of India. 24efiling is here to guide you through the entire process seamlessly. 

Take the next step towards maximizing your NGO's impact. Contact 24efiling today for a free consultation on your Section 80G & 12A registration needs! 

Faq

We Made Things Easy For You!

Yes, you can apply for them simultaneously or in sequence. 12A registration is usually obtained first.

 No, the registration process itself is free. However, professional assistance may incur charges. 

Our experts can guide you through the entire process, handle document preparation, and ensure a smooth application experience. 

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