{"id":18831,"date":"2023-08-21T15:20:12","date_gmt":"2023-08-21T09:50:12","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/new-learn?p=18831"},"modified":"2025-07-28T10:29:59","modified_gmt":"2025-07-28T04:59:59","slug":"benefits-of-12a-and-80g-registration","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/benefits-of-12a-and-80g-registration\/","title":{"rendered":"Benefits of 12A and 80G Registration"},"content":{"rendered":"

The 80G and 12A Registration certificate helps an NGO to get income tax exemption. This exemption is granted to both the NGO and its donors. It is essential to obtain certification immediately after the NGO\u2019s incorporation. The\u00a0primary objective of\u00a080G & 12A registration<\/strong><\/a> is to encourage donors to contribute to social work and donate to organisations with these certifications without incurring<\/span>\u00a0additional costs.<\/span><\/p>\n

The Income Tax Department issues an 80G Certificate to a non-governmental organisation (NGO) such as a charitable trust or a Section 8 Company. The 80G Certificate is granted to encourage donors to donate funds to such non-profit organisations.<\/span><\/p>\n

Only 12A and 80G registered NGOs in India can accept international funding with an exemption available under FCRA, 2010.<\/span><\/p>\n

Grants and funds are permitted from recognised Agencies, Governments, and International Sources.<\/span><\/p>\n

This registration allows more capital for charitable activities through tax exemption on NGO income.<\/span><\/p>\n

If an applicant in India wants to establish an NGO, they must first obtain a 12A Registration Certificate. After that, the applicant can apply for 80G Registration.<\/p>\n

Let\u2019s discuss the registration processes for Section 12AA and Section 80G under the Income Tax Act in India. As of my last knowledge update in September 2021, here\u2019s an overview of these two sections:<\/span><\/p>\n

Section 12AA Registration Process:<\/h3>\n

Application<\/b>: To obtain registration under Section 12AA, an organisation needs to apply to the Commissioner of Income Tax (Exemptions) using Form 10A. This form is typically available on the official website of the Income Tax Department.<\/span><\/p>\n

Documents Required<\/b>: Along with the application form, you\u2019ll need to submit a variety of documents, including:<\/span><\/p>\n

    \n
  • Copy the organisation\u2019s trust deed or memorandum of association, including any amendments.<\/span><\/li>\n
  • Details of the organisation\u2019s activities and how they are aligned with charitable purposes.<\/span><\/li>\n
  • Copies of financial statements and balance sheets for the past three years.<\/span><\/li>\n
  • KYC of Members\/Trustees<\/span><\/li>\n
  • Contact details of Members\/Trustees<\/span><\/li>\n<\/ul>\n

    Verification<\/b>: The Income Tax Department will review the application and the provided documents to assess whether the organisation\u2019s activities are genuinely charitable and meet the criteria for tax exemption. This involves ensuring that the organisation\u2019s activities are carried out for the public benefit and are within the scope of the law.<\/span><\/p>\n

    Grant of Registration<\/b>: If the Commissioner is satisfied with the application and documents, they will grant registration under Section 12AA. This registration is necessary to establish the organisation\u2019s eligibility for income tax exemption on its income.<\/span><\/p>\n

    Section 80G Registration Process:<\/h3>\n

    Post 12AA Registration: Generally, organisations must first obtain registration under Section 12AA before applying for registration under Section 80G.<\/span><\/p>\n

    Application<\/b>: To obtain registration under Section 80G, the organisation needs to apply to the Commissioner of Income Tax (Exemptions) using Form 10G. This form is also on the Income Tax Department\u2019s official website.<\/p>\n

    Documents Required<\/b>: Along with the application form, you\u2019ll need to submit documents including:<\/span><\/p>\n

      \n
    • Copy of the organisation\u2019s registration certificate under Section 12AA.<\/span><\/li>\n
    • Details of the organisation\u2019s activities and how they fulfil the conditions of Section 80G.<\/span><\/li>\n
    • Copies of financial statements and balance sheets for the past three years.<\/span><\/li>\n
    • KYC of Members\/Trustees<\/span><\/li>\n
    • Contact details of Members\/Trustees<\/span><\/li>\n<\/ul>\n

      Verification<\/b>: Similar to the 12AA registration process, the Income Tax Department will review the application and documents to ensure that the organisation\u2019s activities meet the criteria for tax-deductible donations under Section 80G.<\/span><\/p>\n

      Grant of Registration<\/b>: If the Commissioner is satisfied with the application and documents, they will grant registration under Section 80G. This registration allows donors to claim deductions on donations made to the organisation.<\/span><\/p>\n

      Conclusion:<\/h2>\n

      Obtaining 12A and 80G registrations under the Income Tax Act provides numerous benefits for non-profit organisations. The 12A registration provides exemption from income tax, allowing organisations to utilise their funds more effectively for their social and charitable objectives. Meanwhile, the 80G registration enables donors to claim tax deductions on their contributions, thereby incentivising greater philanthropic support. These registrations not only enhance an organisation\u2019s credibility and transparency but also foster a culture of giving and sustainable growth in the non-profit sector, ultimately leading to positive social impact and a stronger sense of community engagement.<\/p>\n","protected":false},"excerpt":{"rendered":"

      The 80G and 12A Registration certificate helps an NGO to get income tax exemption. This exemption is granted to both the NGO…<\/p>\n","protected":false},"author":1,"featured_media":18334,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[16],"tags":[],"class_list":{"0":"post-18831","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-taxation"},"yoast_head":"\nBenefits of 12A and 80G Registration<\/title>\n<meta name=\"description\" content=\"Benefits of 12A and 80G Registration - 80G and 12A Registration certificate helps an NGO to get income tax exemption\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kanakkupillai.com\/learn\/benefits-of-12a-and-80g-registration\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Benefits of 12A and 80G Registration\" \/>\n<meta property=\"og:description\" content=\"Benefits of 12A and 80G Registration - 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