Section 12 Registration
Section 12A registration is done by NGO to exempt the income of their organization. After doing 12A registration, all income of the organization will not be taxable. In case NGO does not get registration under section 12A, income tax is payable on surplus during the year. The application for the registration should be filed with the commissioner of income tax.
What Is Included In Our Package?
Benefits of Section 12 Registration
The benefits of section 12A registration are as follows –
- The first and the most important benefit of section 12A registration is that your income will be exempted from tax.
- Benefits of FCRA registration
- Availing grants from the government, abroad & other agencies.
Eligibility for Section 12 Registration
Not Applicable for Section 12A Registration
Section 12A registration is not applicable on the private or family trust.
Documents Needed For Section 12A Registration
Procedure For 12A Registration
- Duly filled in application form 10-A will be submitted to the exemption section of the income tax department.
- After applying, income tax department will send notice to the NGO in 2-3 months for clarifications
- In response to the notice, consultant will submit the reply of the notice along with all the required documents to the income tax department.
- In the fourth step, consultant will personally visit the income tax department to follow up the case on behalf of NGO.
- If everything goes well exemption certificate will be issued by the income tax department but in case income tax commissioner is non-satisfied with the application, he/she may reject the application of an NGO.
- The registration done once is valid for lifetime.
As per section 80G of the income tax act, 80G registration provides benefits to the donor of an NGO. The donor gets financial benefits in his taxable amount of their income.
Benefits of Section 80G Registration
The benefits of section 80G registration are as follows –
Eligibility for Section 80G Registration
To become eligible to apply for registration under section 80G, you have to comply with the following conditions –
- The NGO shall be duly registered under the act
- Donations made should lie in the category of charities prescribed under section 80G.
Not Applicable for Section 80G Registration
- The charities with religious or business angle
- Non-separation of business and charity account in case charity is involved in business which does not deal in donations alone
- Donor donating to the NGO which is not registered under section 80G, NGO doing funding for a political party, gifts made to trusts operating outside India.
Documents Needed For Section 80G Registration
Procedure For 80G Registration
Note - The applications to get 12A & 80G certificate can be filed together or can file separately as well.