Table of Contents
What is 12A Registration?
12A registration allows NGOs, trusts, and charitable institutions to claim exemption from paying income tax on their surplus income. Without this registration, all income generated by the organization would be taxable, limiting funds available for charitable activities.
In short, 12A = Tax exemption for NGOs.
What is 80G Registration?
80G registration benefits the donors who contribute to an NGO. It allows donors to claim a deduction (50% or 100%, depending on the case) of the donated amount from their taxable income.
In short, 80G = Tax benefit for donors
Key Benefits of 12A & 80G Registration
For NGOs (12A):
- Income is exempt from taxation.
- More funds available for welfare activities.
- Better credibility in the eyes of government agencies and donors.
For Donors (80G):
- Donations qualify for tax deduction.
- Encourages more individuals and corporates to contribute.
Together, these registrations boost financial sustainability and donor confidence in NGOs.
Eligibility Criteria for NGOs
To qualify for 12A and 80G registration, NGOs must:
- Be registered as a Trust, Society, or Section 8 Company.
- Engage in genuine charitable activities (education, health, relief, environment, etc.).
- Maintain proper accounts and financial transparency.
- Not use income for the benefit of trustees, founders, or specified persons
Required Documents for 12A & 80G Registration
Commonly required documents include:
- Registration certificate of Trust/Society/Section 8 Company.
- PAN card of the NGO.
- Memorandum of Association (MOA) / Trust Deed.
- Details of trustees/board members.
- Audited financial statements of the past 3 years (if applicable).
- Activity report of the organization.
- Bank account details.
Important: All documents should be self-attested and in PDF format. Ensure document clarity and completeness to avoid rejection.
Step-by-Step Registration Process
Prepare documents
Ensure all legal and financial records are updated.
File online application
Submit Form 10A (for fresh registration) or Form 10AB (for renewal) on the Income Tax portal.
Verification by authorities
The Commissioner of Income Tax (Exemptions) may request additional documents.
Approval
On successful verification, registration is granted in electronic form with a unique registration number.
Compliance and Renewal
- Registrations under 12A and 80G are generally valid for 5 years and must be renewed thereafter.
- NGOs must file annual returns (Form 10B / Form 10BB, as applicable).
- Any change in constitution, trustees, or activities must be reported to the Income Tax Department.
Conclusion
For NGOs in India, 12A and 80G registrations are essential tools that ensure tax exemptions and attract more donors by offering them tax benefits. They enhance financial efficiency, credibility, and long-term sustainability of the organization.
If you are running an NGO or planning to set one up, obtaining these registrations should be your top priority.
Need Professional Help with 12A or 80G Registration?
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