12A and 80G Registration are crucial tax exemption registrations under the Indian Income Tax Act, 1961, specifically designed for Non-Profit Organizations (NGOs) such as Trusts, Societies, and Section 8 Companies.
They provide income tax benefits to NGOs and their donors and help organizations raise funds more easily.
Getting registered under Section 12A and Section 80G is almost mandatory for NGOs intending to seek grants, donations, and CSR (Corporate Social Responsibility) funds.
Eligibility for 12A & 80G Registration
- Must be a legally registered Trust, Society, or Section 8 Company.
- The organization’s objectives must be charitable or non-profit.
- The organization should not distribute profits among its members.
- Proper maintenance of books of accounts is necessary.
- Must have a valid PAN Card.
- NGOs should not promote any particular religion, caste, or community exclusively.
Documents Required for 12A & 80G Registration
- Certificate of Registration of Trust/Society/Section 8 Company.
- PAN Card of the NGO.
- Memorandum of Association (MOA) / Trust Deed / Articles of Association (AOA).
- Financial Statements for the last 3 years (if applicable).
- Details of Activities and Welfare Projects.
- List of Trustees/Directors/Management Committee Members with their PAN and Aadhaar.
- Bank account statements.
- Note on activities conducted so far.
- Digital Signature of authorized signatory.
Process of 12A & 80G Registration
- Application Filing:
Online filing through the Income Tax portal in Form 10A (for fresh registration) or Form 10AB (for renewal). - Verification:
The Income Tax Department scrutinizes documents and may seek additional clarification. - Approval or Rejection:
- On satisfaction, the department issues a 12A Certificate and an 80G Certificate valid for 5 years.
- The NGO must apply for renewal at least 6 months before expiry.
Compliance After Registration
Annual filing of Income Tax Returns in ITR-7.
Maintaining proper books of accounts and project reports.
No misuse of funds for non-charitable purposes.
Renewal applications to be filed before the expiry of certificates.