12a and 80g Registration
Non-profit organisations (NGOs) involved in charitable or religious activities can benefit greatly from substantial tax benefits provided by two important provisions of the Indian Income Tax Act: 12a and 80g. Non-profit firms (NGOs) in India can obtain 12a and 80g registration to avail themselves of certain tax benefits. Section 12a of the Income Tax Act exempts income tax for charitable and religious institutions. Section 80G allows for deducting donations made to registered charitable institutions.
12a and 80g Registration Fees
The state and type of NGO determine the different registration fees for 12a and 80g. But generally, the expenses are negligible.
80g and 12a Registration Process
The registration procedure for 12a and 80g is comparable. NGOs can use the Income Tax Department's website to submit an online application. It is necessary to have the following documents:
Memorandum of Association (MOA) and Articles of Association (AOA)
Registration certificate of the NGO
List of office-bearers and members
Audited financial statements for the last three years
Details of income and expenditure
Declaration by the managing committee
Undertaking to abide by the provisions of the Income Tax Act
Documents Required for 12a and 80g Registration
NGOs might also be required to submit the following paperwork in addition to the ones listed above:
Pan Card of the NGO
PAN Card of the authorized signatory
Proof of identity and address of the authorized signatory
No objection certificate from the local authorities
Registration certificate under the Foreign Contribution (Regulation) Act (FCRA), if applicable
Advantages of 12a and 80g Registration
The benefit of 12a and 80g registrations to India's non-profit organisations (NGOs) is substantial. Among these advantages are:
Tax Benefits
Enhanced Credibility
Access to Government Grants and Schemes
Simplified Compliance
Improved Fundraising
Renewal of 12a and 80g Registration in India
The following steps are involved in renewing 12a and 80g registrations in India:
1. Gather Required Documents:
Audited Financial Statements: Submit your NGO's latest audited financial statements.
Declaration of Activities: Provide a statement detailing your NGO's activities and compliance with Section 12a and 80g provisions.
Other Documents: Depending on the specific requirements, you may need to submit additional documents such as a list of office-bearers, a copy of the registration certificate, and proof of identity and address of authorized signatories.
2. File the Renewal Application:
Online Portal: You can typically file the renewal application online through the Income Tax Department's portal.
Physical Submission: In some cases, you may need to apply physically at the relevant income tax office.
3. Pay Renewal Fee:
Online Payment: You can usually pay the renewal fee online using various payment methods.
Physical Payment: Alternatively, you may need to pay the fee at the income tax office.
4. Verification and Approval:
Review: The Income Tax Department will review your application and documents.
Approval: Your renewal application will be approved if everything is in order.
5. Obtain Renewal Certificate:
Download or Receive: Once your renewal is approved, you will receive a renewal certificate, which you can download or receive physically.
Final Thoughts
The registration procedure for 12a and 80g can be difficult and time-consuming. However, NGOs need to obtain these registrations to avail of tax benefits. NGOs can get expert assistance from tax consultants or solicitors to ensure a seamless registration process.
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