80G &12A Registration
12AB & 80G REGISTRATION
Get Exemption from Tax Rates on your NGO and provide Tax Exemption on Donations to your DONORS through 12AB & 80G Registration.
12AB & 80G Registration With BizzSeva
In the form of a Charitable Trust/Society/Section 8 Company, an NGO (Non-Governmental Organization) is established solely to serve non-profit humanitarian purposes, and once such entity is formally registered, it is eligible for tax exemptions, benefits, and reliefs, as well as the provision of tax deductions for donors.
Any income an NGO earns, such as service/production/donation, will be treated as normal taxable income without regard to the purpose of such income unless that NGO has obtained 12AB and 80G registrations online. With the help of 12AB registration, all the income earned by the NGO is exempted from tax.
Hence, such NGO can utilize all earnings in promoting it’s objectives. With the help of 80G registration, the tax on the donations offered by the donors for the upliftment of the society is exempted.
Only NGOs and Charitable Organizations that meet the following criteria are eligible for the 80G and 12AB registrations:
- An NGO must not earn money from a business.
- They must be registered as a society, charitable trust or a Section 8 NGO.
- Additionally, such Organisations must not use their assets or income for anything other than charitable purposes.
- They must also keep track of their receipts and expenses in a regular book of accounts.
- The trustees or any other governing body of the organisation should not be involved in any improper use of these funds.
- Such organizations must not work for the benefit of a specific caste or religion.
- In addition, if the organisation earns money from its business, it should keep a separate book of accounts. Donations to the NGO, on the other hand, must not be used for such ventures.
What is 12AB Registration ?
TAX EXEMPTION BENEFITS ON NGO'S INCOMEThe Income Tax Department grants Section-8 Companies, Trusts and Other Not-for-Profit Organisations 12AB Certificate, which is a provisional certificate valid for 3 years. Previously, the approval for 12A registration was a tedious and costly process.
But, with the introduction of new reforms under this act, a newly registered NGO can now apply for a provisional 12AB registration and can avail benefits such as Tax exemption on the income earned during that fiscal year.
Section 8 Companies, trusts, and non-governmental organisations (NGOs) that have obtained 12A registration are exempt from paying income tax on their surplus income. All non-profit organisations can use the 12AB registration service.
What is 80G Registration
TAX EXEMPTION BENEFITS TO DONORSThe Income Tax Department issues an 80G Certificate to a Section 8 Company, Charitable Trust, or a Non-Profit Organisation or Non-Governmental Organisation (NGO). The goal of the 80G certificate is to encourage more people to donate money to charities like these.
The donor benefits from donating to such an NGO in that he receives a tax exemption on 50% of his donation because donations can be deducted from their Gross Total Income.
To qualify for the tax exemption, the donor must attach a stamped receipt from the NGO to the donation – the receipt must include the organization’s name, date, PAN and the 80G Registration Number. The provisional 80G registration will be valid for 3 years.
More Fund to work
New sources of funds
Broadens the scope of NGO
FCRA Fundings
More Exposure
Validity
Documents required for 12AB & 80G registration
- Section 8 Company/ Society/ Trust registration documents.
- Directors or Trustee's PAN Card.
- Aadhar Card of the directors or trustees.
- Trust Deed (in the case of a Trust) or Memorandum of Understanding (MOA), Articles of Association (AOA) of the Company (in the case of a Society/Section 8 Company).
- Audit Reports of all years since incorporation of the Section 8 NGO/Trust/Society.
- A comprehensive list of welfare activities.
Fastest Registration Process in India With Bizzseva Consultancy Services! Enquire Now!
