Overview

In India, 80G and 12A registration are crucial for non-profit organizations seeking tax benefits. NGOs aim to secure these registrations to maximize advantages for themselves and their donors.

80G Registration

Non-governmental organizations (NGOs) such as trusts, societies, and Section 8 Companies operate using donations. All NGOs are eligible to apply for 80G certification, which falls under Section 80G of the Income Tax Act of 1961. This certification allows donors to claim tax exemptions on their donations.

12A Registration

NGOs engaged in charitable activities may generate income through permissible means. Without 12A registration under the Income Tax Act of 1961, NGOs must pay taxes on their income. However, organizations with 12A registration receive tax exemptions on their earnings.

Facing challenges with 80G and 12A registration in India? Fastzeal’s experts simplify the process and ensure smooth registration for NGOs.

Requirements for 80G and 12A Registration

Having 80G and 12A certificates enhances an NGO’s credibility and funding opportunities. Key requirements include:

1.       Registration: Only registered NGOs can apply.

2.       12A Requirement: 80G registration is available only to NGOs already registered under 12A.

3.       Non-Commercial Activities: NGOs should not generate revenue from commercial activities.

4.       Transparent Accounts: Proper financial records, including receipts and expenditures, must be maintained.

Eligibility for Tax Savings under 80G

• Only donations made to registered NGOs qualify for tax exemptions under Section 80G.

• Individuals donating to these NGOs can claim deductions under Section 80G.

Documents Required for 80G and 12A Registration

12A Registration

The purpose of 12A registration is to exempt NGOs from income tax. Required documents include:

• PAN Card of the NGO

• Trust Deed (for Trusts)

• Registration Certificate and Memorandum of Association (for Societies or Section 8 Companies)

• List of Board of Trustees

• Form 10G (for 12A registration)

• Address proof of the registered office

• No Objection Certificate (NOC) from the landowner (if rented)

• Utility bills (electricity, water)

• Financial records of the last three years

• Reports on welfare activities from the last three years

• Bank statements from the last three years

• List of donors with PAN and address details

80G Registration

To allow donors to claim tax deductions, NGOs need 80G registration. Required documents include:

• PAN Card of the NGO

• Form 10A (for 80G registration)

• Bank statements for the last three years

• Memorandum & Articles of Association (for Section 8 Companies)

• Trust Deed (for Trusts)

• Registration Certificate and Memorandum of Association (for Societies or Section 8 Companies)

Registration Procedure for 80G and 12A

12A Registration

1. File Form 10G as per Rule 17A of the Income Tax Act.

2. Attach the required documents.

3. Submit the application.

4. The Commissioner reviews the application and verifies the NGO’s authenticity.

5. Provide any additional details if required.

6. On successful verification, a 12A certificate is issued.

7. In case of rejection, the applicant gets an opportunity to appeal.

80G Registration

1. File Form 10A under the Income Tax Act.

2. Attach necessary documents.

3. Submit the application to the Income Tax Commissioner (Exemptions).

4. The Commissioner reviews and verifies the NGO’s credentials.

5. Submit any additional information if required.

6. Once approved, the 80G certificate is issued after document validation.

Benefits of 80G and 12A Registration

12A Registration Benefits

• Income Tax Exemption: NGOs do not have to pay tax on their income.

• Grant Eligibility: Access to government and international grants.

• One-Time Registration: No need for periodic renewal unless the NGO ceases operations.

• Wealth Accumulation: NGOs can save up to 15% of their income for future use.

• FCRA Eligibility: NGOs with 12A certification can receive foreign contributions easily.

80G Registration Benefits

• Increased Credibility: Enhances donor trust.

• Tax Benefits for Donors: Encourages donations by offering tax exemptions.

• Access to Funding: NGOs can apply for grants and government support.

• Legal Recognition: Establishes the legal identity of the NGO.

• Foreign Contributions: NGOs with 80G certification can receive international donations without hassle.

Re-Authorization Timeline for 80G and 12A Registration

Recent Updates

• All existing NGOs registered under 80G and 12A must re-register to continue availing tax exemptions.

• NGOs seeking CSR funding must register through Form CSR-1.

• The Income Tax Department now issues Provisional Registration Certificates to newly registered NGOs.

• Issued certificates are valid for three years initially and need to be renewed thereafter.

• After re-registration, the validity is extended to five years, requiring renewal every five years.

Process Timeline

• The process takes 2-3 months.

• Review starts 10 days after application submission.

• The certificate remains valid for five years before renewal is required.

Documents Required for Re-Authorization

• Financial statements and income tax returns for the last three years

• Incorporation certificate (for Section 8 Companies)

• Trust Deed (for Trusts)

• Society registration certificate (for Societies)

• List of welfare activities undertaken

• NGO DARPAN ID (if applicable)

• FCRA ID (if applicable)

• Previous 12A & 80G certificates

80G and 12A Registration Fees

The fees for 80G and 12A registration depend on multiple factors. Fastzeal offers professional services with a transparent pricing model. The total registration fee ranges from INR 8,999 to 12,999 (exclusive of GST).

Why Choose Fastzeal?

Fastzeal has a strong PAN India network of professionals, including business consultants, CAs, lawyers, and CS, dedicated to assisting NGOs. Our key strengths:

• Assisted 800+ NGOs with successful 80G and 12A registration.

• 70% market share in NGO compliance services.

• End-to-end assistance for 80G and 12A registration.

• 99% client retention rate—trusted by NGOs nationwide.

• Network of 200+ NGO registration experts.

• Post-registration compliance support.

• Saved over 25 lakh+ hours for social entrepreneurs in India.

• Expert guidance on fundraising and compliance management.