80G and 12A Registration

NGOs must apply for 12A & 80G Registration online in India to provide income tax exemption to the bestowers! It also helps NGOs in helping government sponsorship and funds. The expert team at Kanakkupillai are just a phone call behind to help and guide you!

The registrations of 80G and 12A apply only for entities like NGOs and Charitable Organizations if they satisfy the following conditions:

  • The entity must not have any financial gain generated from a business
  • The entity should either be a registered society or a charitable trust 
  • Additionally, such entities should not be using their properties or income for any other intention apart from using charity-related activities
  • Moreover, the entity must keep a regular book or report of accounts in favour of their financial dealings or receipts and expenses.
  • The trustees of any other body that manages the organization must not be involved in gaining any undue benefits from the contributions or funds
  • The entity should not be operating for the benefit of any particular community or caste or religion
  • Also, for any business-related income, such entities should maintain a separate book or report of accounts and financial dealings. However, the contributions and donations
  • Received by the NGO should not be used for any other business other than charity purpose.
  • It is a must that an NGO should apply for 12A And 80G Registration soon after its registration

 

What is an 80G Certificate?

An 80G Certificate is a legal document granted by the Income Tax Department to an NGO or non-governmental organization such as a Section 8 Company or a charitable trust. The 80G Certificate is issued to encourage and promote the donors to contribute funds to such NGOs or non-profit organizations. Moreover, when the donor makes donations to such an organization, they will get a tax exemption of 50%  and also they become qualified to deduct such sum from their Gross Total Income. Furthermore, in order to obtain the tax exemption, the donor has to file the stamped receipt or document as evidence of the donation made. Such a receipt or document should have the name of the donor, date of contribution or donation made, and PAN number of the organization.