80G Registration

The 80G and 12A registrations are specifically meant for NGOs and Charitable Organizations, but there are a few conditions that need to be met:

·         Firstly, the entity should not be making any financial gain from a business. The main focus should be on charitable work.

·         Secondly, the entity should either be a registered society or a charitable trust. These are the acceptable forms for this kind of registration.

·         Furthermore, the entity must use its properties and income exclusively for charity-related activities. No other intentions should be involved.

·         It is also important for the entity to maintain regular accounts of their financial dealings and expenses. Keeping a record in favor of transparency is essential.

·         The trustees or management of the organization should not take advantage of the contributions or funds for any personal gain. Everything should be solely for the benefit of the charity.

·         Lastly, the entity should not operate with the intention of benefiting any specific community, caste, or religion. 

·         In addition, businesses need to keep a separate record of their income and financial transactions. However, any contributions or donations received by the NGO must be solely used for charitable purposes and not for any other business ventures. 

·         Applying for 12A and 80G registration online in India should be done promptly after the NGO's registration, as it is necessary.

What is the purpose of an 80G Certificate in India? 

·         An 80G Certificate is a legal document issued by the Income Tax Department to non-governmental organizations (NGOs) such as Section 8 Companies or charitable trusts. 

·         Its main objective is to incentivize donors to contribute funds to these NGOs or non-profit organizations. By obtaining an 80G Certificate, donors qualify for a tax exemption of 50% and are eligible to deduct this amount from their Gross Total Income. 

·         To claim this exemption, donors must file a stamped receipt or document as evidence of their contribution, including the donor's name, date of the donation, and the PAN number of the organization.

The registration process for obtaining an 80G certificate in India involves the following steps:

1. Apply for an 80G certificate to the designated Commissioner of Income Tax (Exemption) in the jurisdiction where the entity is located, along with all necessary documents and reports.

2. Once the application is received, the Income Tax department will conduct an on-site inspection to verify the submitted documents and their authenticity for 80G registration.

3. It is possible that the Income Tax Officials may request additional documents, reports, or evidence if they find any missing or unsatisfactory information during their verification process.

4. Upon satisfactory verification of the submitted documents and compliance with the requirements, the Commissioner will issue an 80G certificate to the organization.

5. It is important to note that an 80G certificate, once obtained, remains valid for the lifetime of the organization.

An Introduction to 12A Registration Online in India

The 12A registration online in India refers to the provision under the Income Tax Act, 1961 that offers a one-time tax exemption to trusts, NGO organizations, and Section 8 Companies. This registration certificate grants these organizations the benefit of tax exemption, allowing them to be exempt from paying taxes on their surplus financial gains.

NGOs, or non-governmental organizations, are entities engaged in non-profit activities and charitable operations. While they do generate income, if an NGO is not registered under section 12A of the Income Tax Act, they are required to pay income tax at the standard rates.

What are the steps involved in the 12A registration process in India?

1. In accordance with Rule 17A of the Income Tax Act, 1961, the applicant or entity must complete and submit Form 10A as an initial application.

2. The application should include all necessary information as specified in the guidelines provided by the Jurisdictional Commissioner of the Income Tax department (Exemptions).

3. Upon receipt of the form and accompanying documents, the authorized Commissioner will carefully review both the documents and the entity's activities. Additional reports, evidence, documents, or information may be requested if deemed necessary.

4. If the Commissioner is satisfied with the submitted documents and application, an order in writing will be granted for the sanction of 12A Registration. However, if the Commissioner is unsatisfied, the application will be rejected, and the entity or applicant will be given an opportunity to present their case.

5. The 12A Registration certificate may be cancelled if the organization is found to be engaged in any of the following activities:

   - Acting contrary to the organization's stated objectives.

   - Operating without genuine intentions.

   - Partiality towards a specific caste or religion.

   - Misusing funds for prohibited purposes.

   - Utilizing the institution's financial gains or income for the benefit of a specific group or individual.

Note: The 12A Registration is a lifelong certification for the respective institution.