What are important updates about 80G/12A Registration for NGO?

In earlier times, the Government of India came up with the most flexible as well as lenient approach to the NGOs. But things have changed over the years, and now the Governmental authorities have transformed the position by opting for a more stringent as well as a streamlined system for exerting stringent control. Most of the charitable institutions as well as the nongovernmental organization will be completing 80G & 12 A certifications after its setting up for claiming exemptions.

Also, according to the Finance Act, which was brought forward in the year 2020, there has been a significant transformation that has been brought in place through the introduction of the significant of transformation in the procedure through the introduction as per section 12 AB, despite section 12AA.

Let’s have a look at the most crucial of the updates with regard to the 80G & 12A Registration and why it is eminent to register as a non-governmental organization.

Why NGOs should avail 80G/12A Registration?

  • The Non-Governmental Organizations are being set up to serve a nonprofit humanitarian goal and come under the category of the charitable trust/ society/ section.
  • Such type of entities will get registered formally and need to seek the approval of the bunch of the exemptions from the taxation, benefits, reliefs along with provisions of the deductions of taxation from donors.
  • For such purposes, the 12A as well as the 80 G certificate are compulsory. Otherwise, any sort of income which is earned by the NGO for example service/ any form of donation will be considered just like the normal taxable income and this is without the consideration of the income goal.

    • The NGOs who have already taken 80G/12A Registration will be seeking upgrades of the commercial value in comparison to the counterparts without such approvals.

    What is an 80G certificate?

    The 80G registration, according to section 80G, income tax will be facilitating the donors, for claiming tax deductions, on respective of the donors, rendered to the charitable institutions. So, this is going to encourage the people as well as the organizations to contribute towards the charitable cause by rendering them taxation advantages. For the businesses to hold eligibility for seeking 80 G certificate, they must initially acquire 12A registration.

    How much 12A & 80 G registration cost?

    For getting 12 A registration, submission of application is must to the concerned authorities and this is with respect to all the paperwork as well as the prescribed fees. Also, the fees vary & this is dependent upon type of entity. So, generally the cost if it is a charitable institution is INR 500 and the fee for non profit business/ society is INR 2000. However this fee structure is not fixed and changes. Thus, make sure to refer to all the latest guidelines as wella s the regulations for consulting professional assistance.

    For seeking 12 A registration, the applicant needs to submit the documentation to the income tax authorities as well along with the prescribed fee. The fee structure for the 12 licensing is dependent upon the nature of the business. When the fee is to be charged for the charitable trust/ institution, then it is INR 500. But for non profit company, it will be RS 2000. So, the fee structure is subject to change and it is essential to know the latest of regulations or to make sure to consult a professional to seek accurate information.

    Read Also This – What Is Checklist & Procedure For 80G/12A Registration

    Take help of 80G/12A certification specialists and relieve yourself from burden

    The team of expert professionals will be assisting the clients in seeking registration of their NGOs seamlessly and this is without any worry about the documentation as well as the registration procedure. The experts will be serving as the single-stop solution for facilitating as well as ensuring a hassle-free process about the Indian compliance requirements. The legal consultants will be taking care of all the aspects of 80G/12A certification in a distinct manner. Then, they will be filing for the 12A registration initially. So, looking for 12 AM licensing is mandatory in order to apply for certification according to 80G, Income Tax Act, 1961.

    So, get your charitable organization/ NGO acknowledged as well as benefitted from the Income tax authorities of a country.

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