80G and 12A Registration

 Overview

80G Registration

An 80G Certificate is issued by income tax department to trusts, societies, section 8 companies. The 80G Certificate is granted to encourage the donors to donate funds into such non- profit organizations, 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.

Objectives of 80G Registration

1. To increasing number of contributors to give donation to such associations for welfare of the societies and member of the trust.
2. The Doner can avail deduction from its taxable income.
3. Tax reductions can be guaranteed uniquely on explicit gifts for example those made to recommended assets and establishments.

 Registration Procedure for 80G

Steps 1: Login in to the filling portal of the IT Department

Steps 2: File 10A form with required details

Steps 3: Upload required documents on portal

Steps 4: Commissioner check the variability of documents uploaded, if he needs some additional documents or clarification, he will call additional information and documents on the portal.

12A Registration

Section 12 A of the Income Tax Act, 1961, is a tax exemption provided to trusts, NGOs, societies  and Section 8 Companies. Organizations holding a registration under section 12A are exempted from paying taxes on their surplus income.

Registration Procedure for 12A

Step 1: File Form 10A on income tax portal as per rule 17A of IT Act 1961

Step 2: Upload required documents

Step 3: Commissioner check the variability of documents uploaded, if he needs some additional documents or clarification, he will call additional information and documents on the portal.

Step 4: On the Satisfaction of Requirement, Commissioner pass an order in writing for Grant 12A Certificate.

Documents required for Registration of 80G and 12A

1. Memorandum of Association and certificate of registration, trust deed in case of Trust
2. Copy of PAN card
3. No Objection Certificate from the owner of the Registered address of NGO
4. Copy of Latest Electricity Bill
5. Rent Agreement
6. List of members
7. Last Three ITR and Audited balance sheet if available
8. Details of list of the Board
9. KYC of all Members