How NGOs Can Reap Benefits Of Tax Exemption Through 80g & 12 A Registration?

The NGO, Non-Profit Organization plays playing extremely eminent of the role in economic as well as social development. But, the main reason is they lack any stable source of income for the generation of revenue. So, they will be majorly dependent upon grants, donations along with several other types of contributions that are unconditional. So, such contributions will assist in sustaining the operations along with achieving the goals in a prompt manner. Thus, 80G 12A registration serves as the means through which the Governmental authorities will be seeking ways of encouraging contributions towards the non-profit organizations.

How 80G 12A registration benefits NGO?

The NGOs will be primarily relying upon donations to support their day-to-day activities along with their functioning. Thus, for claiming such tax exemptions, which are available, to the donors as well as the recipients, the NGO will be registering under section 80G & section 12A, income tax. This procedure is quite complicated along with time-consuming and thus, you may require the assistance of professionals to accomplish the same.

Read Also This – Latest & Most Important Updates Regarding 80G/12A Registration

What is 12A registration?

12A certification is granted to the NGO as per the provision of section 12A, Income Tax Act, year 1961. So, it will be extending the tax exemptions to all the entities on all the income that they are earning from grants, donations along other types of unconditional of contributions. So, such types of certifications are compulsory for all the NGS who are willing to seek such benefits.

What is 80G registration?

The 80 G licensing is taken by the NGOs to facilitate the donors for claiming the tax deductions on all the contributions they are making to such entities. This type of registration is compulsory & can be taken only once the NGO has already taken 12A certification.

Which authority is issuing 12 A & 80G certificate?

The 80G 12A registration will be issued by the income tax authorities to the NGO for example charitable trust, section 8 of the company. So, the 80G licensing will be granted to encourage the donors to donate the funding to the non-profit organizations. Through the virtue of the 12 A registration, trusts, non-governmental organizations as well as section 8 companies will be enjoying exemptions from the payment of the income tax. The NGOs will be serving as the organizations that will be meant for the charitable as well as all the non-profits of the activities. But they have income and need to make the payment of the taxes according to the normal rates when the registration is not done under section 12A, income tax. Section 12, IT Act doesn’t have a clause of differentiating between the charitable as well as the religious of the trust.

What all perks 12A & 80 G registration extend?

  • Only 12 A & 80G registered non Governmental organizations in the country will be accepting international funding with the exemption availability as per FCRA, 2010
  • Grants as well as funding will be permitted from the recognized of agencies, Governmental sources as well as international sources
  • Through 80G/12A registration, greater of the capital will be facilitated for the charitable activities and this is through the exemption of the taxation with respect to the income of the non-governmental organization.
  • So, under the condition that any of the applicants intent to set up an NGO in the country, he/she must be capable of seeking 12A registration certification initially. Then only the applicant will be in the position of applying for the 80G certificate.

    • What is the procedure for seeking 80G 12A Registration?

  • Filing application

    • First of all the specialists will be filling applications according to the guidelines which have been laid down by the Principal Commissioner of income tax.

  • Verification

    • The specialists will be submitting the application form along with the paperwork for the purpose of verification as well as the activities of the entity by the commissioner.

  • Issuing

    • After accomplishing all the steps, there will be issuing of the 80G/12A registration process.

    Read Also This – Can i apply for 80G/12A Registration online for my NGO

    Why take assistance of 12A 80G Registration providers?

    The specialists will ensure that the application will pass the official security along with all the formal checkpoints and everything in place. Also, the assistance for 80 G/12A won’t end here and you will be provided with thorough and end-to-end assistance all throughout your registration journey.

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