What is 12A & 80G Registration ?
In India, 12A and 80G registrations are related to tax exemptions for charitable and religious institutions under the Income Tax Act, 1961. Here's a brief explanation of each:
12A Registration : Section 12A of the Income Tax Act provides for the registration of charitable or religious trusts/institutions to avail of tax exemptions on their income. Once registered under Section 12A, the income of the trust or institution is exempt from taxation, subject to certain conditions. This registration is essential for organizations seeking tax benefits for their charitable or religious activities.
80G Registration : Section 80G of the Income Tax Act allows donors to claim tax deductions for donations made to eligible charitable or religious institutions. Organizations that have obtained 80G registration can issue tax exemption certificates to donors, enabling them to claim deductions on their taxable income for the amount donated. This registration is crucial for attracting donations and support for the activities of the trust or institution.
Benefits of 12A Registration
- Tax Exemption :The income of the trust or institution is exempt from taxation.
- Credibility : Enhances the credibility of the organization.
- Attracts Donations : Donors prefer to contribute to organizations that have 12A registration.
Benefits of 80G Registration
- Tax Deductions for Donors : Donors can claim tax deductions on their taxable income for the amount donated.
- Increased Donations : Attracts more donations due to the tax benefits provided to donors.
- Credibility : Enhances the trustworthiness of the organization in the eyes of donors.
12A Registration Process / Steps
Preparation of Documents
Gather all the necessary documents required for registration. This may include the trust deed or memorandum of association, articles of association, registration certificate (if applicable), audited financial statements, PAN card, address proof, and other relevant documents.
Application Submission
Prepare the application for 12A registration in Form 10A as per the Income Tax Rules, 1962. The application should be submitted online through the Income Tax Department's e-filing portal.
Submission of Documents
Upload all the required documents along with the application form. Ensure that the documents are properly scanned and uploaded in the specified format prescribed
Verification and Processing
The Income Tax Department will verify the application and documents submitted. They may request additional information or clarification if needed.
Issuance of Registration Certificate
If the application is found to be in order and meets all the requirements, the Income Tax Department will issue the registration certificate under Section 12A of the Income Tax Act. This certificate will be valid unless it is cancelled or withdrawn by the department.
80G Registration Process / Steps
Eligibility Check
Ensure that the organization meets the eligibility criteria for 80G registration. The organization must be engaged in charitable or religious activities and must not be operating for the benefit of any particular religious community or caste.
Preparation of Documents
Gather the necessary documents required for 80G registration. This may include the registration certificate under Section 12A, audited financial statements, PAN card, address proof, details of activities undertaken, and other relevant documents.
Application Submission
Prepare the application for 80G registration in Form 10G as per the Income Tax Rules, 1962. The application should be submitted online through the Income Tax Department's e-filing portal.
Submission of Documents
Upload all the required documents along with the application form. Ensure that the documents are properly scanned and uploaded in the specified format.
Verification and Processing
The Income Tax Department will verify the application and documents submitted. They may request additional information or clarification if needed.
Issuance of Registration Certificate
If the application is found to be in order and meets all the requirements, Finally the Income Tax Department will issue the registration certificate under Section 80G of the Income Tax Act. This certificate will enable the organization to issue tax exemption certificates to donors.
The application for registration is filed within 5-10 days. Total time for approval by the Jurisdictional Principal Commissioner is 20-30 days.
Documents required
- Trust deed/society registration certificate/section 8 company certificate
- Memorandum of Association (MOA) and Articles of Association (AOA) (for section 8 companies only)
- PAN Card of the organization
- Bank Account Statement of the organization
- Audited accounts of the organization for the last three years
- List of Details of trustees/members/directors of the organization
- List of Business activities carried out by the organization
Our Support?
Choosing SS Auditors for 12A and 80G registration offers several advantages. The experienced professionals at SS Auditors provide expert guidance through the complex registration process, ensuring that each step is handled with precision and care. They assist in the preparation and organization of all necessary documents, making sure that everything is in order for a successful application.
Frequently Asked Questions
No, an organization must first obtain 12A registration before applying for 80G registration. 12A registration is a prerequisite for 80G registration.
If the application is rejected, the organization can address the deficiencies mentioned by the Income Tax Department and reapply. It is advisable to seek professional assistance to ensure that the application meets all the necessary criteria and documentation requirements.
To be eligible for 12A registration, the organization must be a registered charitable or religious trust/institution. It must engage in activities that are genuinely charitable or religious in nature, and it must not operate for the benefit of any particular religious community or caste..
The organization must be engaged in charitable or religious activities and must not be operating for the benefit of any particular religious community or caste. It must also have obtained 12A registration before applying for 80G registration.