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Section 8
most usedRs9,999
Trust
PopularRs12,999
Society
Pro+Rs17,999
Overview
Online 12AB & 80G registration
In the form of a Charitable Trust/Society/Section 8 Company, an NGO (Non-Governmental Organization) is established solely to serve non-profit humanitarian purposes, and once such entity is formally registered, it is eligible for tax exemptions, benefits, and reliefs, as well as the provision of tax deductions for donors. Any income an NGO earns, such as service/production/donation, will be treated as normal taxable income without regard to the purpose of such income unless that NGO has obtained 12AB and 80G registrations online. With the help of 12AB registration, all the income earned by the NGO is exempted from tax. Hence, such NGO can utilize all earnings in promoting it’s objectives. With the help of 80G registration, the tax on the donations offered by the donors for the upliftment of the society is exempted.
Only NGOs and Charitable Organizations that meet the following criteria are eligible for the 80G and 12AB registrations:
- An NGO must not earn money from a business.
- They must be registered as a society, charitable trust or a Section 8 Company.
- Additionally, such Organisations must not use their assets or income for anything other than charitable purposes.
- They must also keep track of their receipts and expenses in a regular book of accounts.
- The trustees or any other governing body of the organisation should not be involved in any improper use of these funds.
- Such organizations must not work for the benefit a specific caste or religion.
- In addition, if the organisation earns money from its business, it should keep a separate book of accounts. Donations to the NGO, on the other hand, must not be used for such ventures.
What is 12AB registration ?
Tax exemption benefits on ngo's income
The Income Tax Department grants Section-8 Companies, Trusts and Other Not-for-Profit Organisations 12AB Certificate, which is a provisional certificate valid for 3 years. Previously, the approval for 12AB registration was a tedious and costly process. But, with the introduction of new reforms under this act, a newly registered NGO can now apply for a provisional 12AB registration and can avail benefits such as Tax exemption on the income earned during that fiscal year. Section 8 Companies, trusts, and non-governmental organisations (NGOs) that have obtained 12AB registration are exempt from paying income tax on their surplus income. All non-profit organisations can use the 12AB registration service.
What is 80G registration ?
Tax exemption benefits to donors
The Income Tax Department issues an 80G Certificate to a Section 8 Company, Charitable Trust, or a Non-Profit Organisation or Non-Governmental Organisation (NGO). The goal of the 80G certificate is to encourage more people to donate money to charities like these. The donor benefits from donating to such an NGO in that he receives a tax exemption on 50% of his donation because donations can be deducted from their Gross Total Income. To qualify for the tax exemption, the donor must attach a stamped receipt from the NGO to the donation – the receipt must include the organization’s name, date, PAN and the 80G Registration Number. The provisional 80G registration will be valid for 3 years.
Benefits
ADVANTAGES OF 12AB and 80G Registration
More funds to work
Through the tax exemption on NGO income, more capital will now be available for charitable purposes as it will attract more donors.
New sources of funds
Recognized agencies, government, and international sources of funds and grants are permitted after getting 12AB & 80G registration.
Broadens the scope of NGO
Since, more donors are attracted for charity purpose as that amount is exempted from Tax, this broadens the scope of the NGO’s mission as more donations are now available for charity.
FCRA fundings
Only 12AB and 80G registered NGOs are allowed to accept International funding, with exceptions available under the Foreign Regulation Act, 2010 (FCRA).
More exposure
When an NGO registers and receives 12AB and 80G registrations, it gains more operational exposure and status value.
Validity
The validity of Provisional 12AB & 80G registrations is 3 years. The renewal of these registration must be done 6 months prior to the expiry of these certificates.
Documents required for 12AB & 80G registration
This is all we need from you
Below is the list of documents required for the 12AB & 80G Registration Online:
- Section 8 Company/ Society/ Trust registration documents.
- Directors or Trustee’s PAN Card.
- Aadhar Card of the directors or trustees.
- Trust Deed (in the case of a Trust) or Memorandum of Understanding (MOA), Articles of Association (AOA) of the Company (in the case of a Society/Section 8 Company).
- Audit Reports of all years since incorporation of the Section 8 NGO/Trust/Society.
- A comprehensive list of welfare activities.
More simple than it looks!
12AB & 80G registration process
Preprations of digital signature (dsc)
The Digital Signature Certificates are required for filing online e-forms related to the 12AB & 80G registration process.
NGO darpan registration
NGO Darpan Registration or NITI Aayog registration is required prior to the 12AB & 80G registration. A minimum of 3 members are required for this registration. This process takes upto 3 days.
Preparing forms & attachments
While applying for the NGO Darpan registration, we will start preparing all the e-forms and attachments that are required for 12AB & 80G registration. These forms contains all the details related to the NGO’s working and objectives and needs to be prepared carefully.
Approval from client
Once all the related documents and forms are complete, we send it to the client for verification. Upon approval from the client, we then proceed further.
Filing e-forms with income tax dept
After completing all the formalities and documentation work, we upload e-forms along with the attachments on the Income Tax portal for approval.
Allotment of provisional certificate
The Income Tax Department allots an acknowledgement form stating 12AB & 80G registration documents are submitted and within 3 weeks, the department provides the Provisional 12AB & 80G Certificates that have a validity of 3 years.