80G and 12A Registration
NGOs must apply for 80G and 12A 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 is just a phone call behind to help and guide you!
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.
- Not all NGOs or trusts are eligible for 80G registration. There are certain rules that require to be followed to get it. These have been listed below:
- Donation made to charities that have been prescribed u/s 80G,
- The NGO has been duly constituted as a Public Charitable Trust or registered under section 25 of the Companies Act, 1956. It may be a registered society or a neighborhood 8 Company under the businesses Act’2013 or maybe a University established by law Or is the other institution recognized by the govt or by a University established by law. An affiliation to any University established by law. An institution financed wholly or partially by the govt or agency.
- Following are the small print under which the govt can reject your claim for an 80G certification:
- No Religious Activity: The charities involve religious preaching, or are done towards a specific caste or creed,
- Separation of Business and Charity: If the entity is involved in any business/financial transactions that don't account for donations alone, you'd need to keep both separate. Else, your business might not qualify for 80G registration.
- No Misuse: The donations received towards the cause must not be used for the other purpose, even within the organization. Strict accounting is mandatory.
- Diversion of funds: If the NGO is found funding a party or gifts are made to trusts operating outside India, your 80G certification request will get rejected.
- The registered trust/institution/Section 8 Company should not hold any Non-Exempt.
Process for 80G registration
- The most important requirement for getting 80G registration is to urge registered under Section 12A. After that:
- The application is Form 10G to the Tax Commissioner,
- The application is to be enclosed with the subsequent documents:
- Registration Certificate and MOA/Trust Deed
- No Objection Certificate (NOC) from the owner (where the registered office is situated),
- Copy of PAN card of the NGO,
- Address Proof, as within the copy of Electricity Bill/House tax Receipt/Water Bill,
- Proof of the welfare activities carried out & Progress Report since incorporation or else, last 3 years,
- List of the administration board of trustees members with their contact details
- The Statement of Accounts, record, tax Return documents since incorporation alternatively, last 3 years,
- List and details of donors, like their address and PAN,
- Copy of Registration u/s 12A or copy of notification issued under section 10(23)or section 10(23C).