80G AND 12A REGISTRATION

About 80G Registration- An 80G Certificate is issued by the Income Tax Department to a non-governmental organization (NGO) such as a charitable trust, or a Section 8 Company. The 80G Certificate is granted to encourage the donors to donate funds into such non- profit organizations. Furthermore, the donor gets a tax exemption of 50% when they make donations to such organization, as they become eligible to deduct such amount from their Gross Total Income.

About 12A Registration- Section 12 A of the Income Tax Act, 1961, is a onetime tax exemption provided to trusts, NGOs and Section 8 Companies. Organizations holding a registration under section 12A are exempted from paying taxes on their surplus income.
NGOs are organizations involved in charitable and non-profit activities. However, they do earn income and they are required to pay tax as per normal rates if not registered under section 12A, Income Tax Act.

Procedure for 80G Registration:-

1. Apply for an 80G certificate to the Commissioner of Income Tax (Exemption) within the jurisdictional area of the entity along with the required documents.
2. An on-premise inspection is done by the Income Tax department after the form, and the required documents for 80G registration are submitted.
3. Upon satisfactory verification of documents and the office of the NGO, 80G certificate is granted to the institution by the Commissioner.

Procedure for 12A Registration:-

1. File an application in the Form 10A, as per Rule 17A of the Income Tax Act, 1961.
2. The application needs to be filled as per the guidelines of the Jurisdictional Commissioner of Income Tax (Exemptions).
3. On the satisfactory report, the Commissioner passes an order in writing for the grant of 12A Registration. If the Commissioner is not satisfied he will reject the application, after which the applicant is provided a fair chance to be heard.

Documents required for 80G Registration:-

1. Registration Certificate
2. MOA /Trust Deed
3. NOC from the proprietor of the land where the registered office is situated.
4. Form 10G
5. Copy of the Pan Card of the Trust/Institution.
6. Copy of electricity bill, house tax receipt, or water bill
7. Proof of welfare activities pursued
8. Progress Report since the foundation of the NGO or for the previous 3 years
9. The statement of accounts and balance sheet since the foundation/previous 3 years
10. List of contributors along with their address and PAN.
11. List of governing body of trustees with their contact details
12. Copy of registration granted under section 12A or copy of notification issued under section 10(23)or section 10(23C)

Documents required for 12A Registration:-

1. Documental evidence of the creation of the Trust or NGO {Trust Deed of a Trust; Registration Certificate and Memorandum of Association {MOA} of a society}
2. Section 8 companies need to submit a certificate of incorporation and copies of MOA and AOA of the company
3. Form 10A.
4. Three-year bank account statement of the Trust.
5. PAN of the organization.