80 G and 12 A registration
Validation of 80G and 12A
80G Certificate is issued to a non-profit organization or non-governmental organizations (NGO), a charitable trust or a Section 8 Company by the Income Tax Department. The objective behind the 80G certificate is to encourage more and more donors to donate funds to such organizations. The benefit that the donor avails by donating to such an NGO is that he gets tax exemption on 50% of his donation as the donor is allowed to deduct their donations from their Gross Total Income. To avail the tax exemption, the donor needs to attach the stamped receipt against the donation that is issued by the NGO – the receipt needs to include the name, date, and PAN of the organization.
By virtue of 12A registration, Trusts and NGOs and other Section 8 companies enjoy exemption from paying income tax. NGOs are basically organizations that are meant for charitable and non-profit activities. However, they do have income and would be required to pay tax as per normal rates if not registered under section 12A of the Income Tax Act. The Section 12A of the IT Act, 1962 does not differentiate between charitable and religious Trusts. Hence 12A registration is applicable to both the kinds of organizations.
Overview
NGOs must apply for 12A & 80G Certificate to provide income tax exemption to the donors! It also helps NGOs in availing government funding.
Why Choose Us
Leading Financial Consultants At Your Service
We aim to protect and maximize client wealth with smart tailored solutions and we are experts in providing financial investment advice.
Professional
We aim not to just work for you, but to work with you for years to come by cultivating a professional relationship based on trust.
Privacy
We understand that a company’s financial investments and management is not for everyone to know, and take pride in out work ethic of client confidentiality.
Teamwork
We believe in teamwork, working collaboratively to achieve higher goals to optimize your business.
Support
Our experts are always there to support you throughout your financial journey and beyond.
FAQ
Frequently asked questions.
80G Registration comes under section 80G of the Income Tax Act and provides benefit to the donor of an NGO whereas section 12A Registration will assist an NGO to get an organization income exempted from tax.
A non-profit organization or non-governmental organization (NGO), a charitable trust or a Section 8 Company, can apply for 80G registration as well as obtain certification under section 12A. Both certifications can be applied together or it can also be done separately also.
All NGOs should avail the advantage of these provisions to attract potential donors. ... If an NGO gets registered under 12A and 80g, then only it is applicable for any government funding. A newly registered NGO can also apply for 80g registration.
A 12A registered NGO is permitted of utilizing tax-exempted income for its lifetime. Being permitted of providing valid donation receipts (printed with 80G registration ID) allowed for tax exemptions, NGOs with 80G Certificate receive more donors. 12A registration is a compulsory part of getting 80G registration.
