In India, non-governmental organizations (NGOs) and non-profit entities can benefit from certain tax exemptions by obtaining 12A and 80G registration. These registrations not only offer tax relief to the NGOs but also make them eligible to receive donations that are tax-deductible for the donors. This article provides a comprehensive guide on how to file 12A 80G registration online, detailing the benefits, requirements, and step-by-step process involved.
What is 12A and 80G Registration?
12A Registration
12A registration is a one-time process that allows NGOs, trusts, and non-profit organizations to be exempted from paying income tax on the surplus income they generate. This exemption helps in utilizing the entire income for charitable purposes without any tax burden.
80G Registration
80G registration is a provision under the Income Tax Act that allows donors to claim tax deductions on the donations they make to registered NGOs. An organization with 80G registration can attract more donations as it provides tax benefits to the donors, thus encouraging philanthropy.
Benefits of 12A 80G Registration
Tax Exemption for NGOs
The primary benefit of 12A 80G registration is the tax exemption granted to the non-profit entity, allowing them to utilize their funds solely for their charitable objectives.
Increased Donor Confidence
With 80G registration, NGOs can instill confidence in potential donors, as contributions to registered entities are eligible for tax deductions, making the NGO more attractive for donations.
Legal Recognition
Obtaining 12A 80G registration gives NGOs legal recognition and credibility, enhancing their reputation and standing in the community.
Requirements for 12A 80G Registration
Eligibility
To be eligible for 12A 80G registration, an NGO must be established as a trust, society, or non-profit company, and should be involved in charitable activities such as education, relief of the poor, medical relief, or advancement of any other object of general public utility.
Documentation
The following documents are required for 12A 80G registration:
- Trust Deed or Memorandum of Association (MOA) and Articles of Association (AOA)
- Registration Certificate of the NGO
- PAN Card of the NGO
- Financial Statements and Accounts of the NGO
- List of Donors and their details
- Details of activities and progress reports of the NGO
How to File 12A 80G Registration Online
Step 1: Visit the Income Tax E-filing Portal
Begin the process by visiting the official Income Tax Department’s e-filing portal (https://www.incometaxindiaefiling.gov.in). Ensure you have a registered user ID and password to log in to the portal.
Step 2: Register Your NGO
If your NGO is not already registered on the e-filing portal, you need to complete the registration process. Provide the necessary details, including the organization’s PAN, name, address, and contact information. Once registered, log in using the credentials.
Step 3: Navigate to the “Income Tax Forms” Section
After logging in, navigate to the “Income Tax Forms” section available under the “e-File” tab. Select “Prepare and Submit Online Form (other than ITR)” from the dropdown menu.
Step 4: Select Form 10A and Form 10G
To file for 12A registration, select Form 10A. For 80G registration, select Form 10G. These forms are used to apply for the respective registrations.
Step 5: Fill in the Required Details
Fill in all the required details in Form 10A and Form 10G. Ensure that you provide accurate information regarding the NGO’s activities, financials, and governance structure. Attach the necessary documents, such as the trust deed, registration certificate, PAN card, financial statements, and details of donors.
Step 6: Upload Supporting Documents
Upload all the supporting documents as specified. Make sure the documents are in the prescribed format and size. This includes:
- Trust Deed or MOA and AOA
- Registration Certificate
- PAN Card
- Financial Statements
- Donor List and Details
- Progress Reports
Step 7: Verify and Submit the Form
Review all the entered information and attached documents carefully. Ensure there are no errors or omissions. After verification, submit the forms electronically. An acknowledgment receipt will be generated upon successful submission.
Step 8: Follow Up and Respond to Queries
The Income Tax Department may raise queries or request additional information during the processing of your application. Promptly respond to any such requests to avoid delays in the registration process.
Step 9: Approval and Certification
Upon satisfactory verification of the submitted documents and information, the Income Tax Department will grant the 12A and 80G registration. The approval certificates will be sent to the registered email address of the NGO.
Conclusion
Filing 12A 80G registration online is a crucial step for NGOs and non-profit organizations seeking tax exemptions and the ability to attract more donations. The process, while detailed, is straightforward when approached systematically. By following the outlined steps and ensuring all necessary documentation is in place, NGOs can successfully obtain 12A 80G registration and enhance their operational and financial standing.
