Updated on June 19, 2025 02:53:19 PM
Non-profit organizations in India, including Societies, Trusts, NGOs, and Section 8 Companies, play a critical role in solving social, educational, and environmental issues. In order to sustain their operations and attract more donors, these organizations often look for 12A and 80G registration under the Income Tax Act, of 1961. 12A and 80G registrations are a must for Societies, Trusts, NGOs, and Section 8 Companies to avail tax exemption and attract donations.
12A Registration: This allows the organization to be exempted from paying income tax on surplus income used for charitable or religious purposes. It is critical for entities aiming to retain more funds for their activities rather than tax liabilities.
80G Registration: This facilitates tax exemption on donations. More and more people are inspired to contribute to the organization because it has credibility.
Section 8 Companies: It is a type of company, under the Companies Act, 2013, registered with the purpose of promoting arts, education, charity, environment, sports, or social welfare. The advantages of these entities are the same as those of trust or society, but these are structured and regulated more than others. Together, these registrations boost the financial sustainability and compliance of non-profits, thus making them effective in achieving their missions.
12A & 80G Sample Documents
Table of Content
12A and 80G registrations are important for Societies, Trusts, and other NGOs in India for tax benefits and for soliciting donations.
12A Registration It is given under the Income Tax Act, of 1961, and exempts the income of the organization from tax if it is used for charitable or religious purposes. This registration is a must for organizations to seek long-term sustainability and reduced tax burdens.
80G Registration This is a registration that allows donors to get tax deductions for their contributions, thus encouraging more donations. It makes the organization more attractive to potential donors since they can claim 50% of the donation amount deducted from their taxable income.
Both registrations enhance credibility. Thus, it is easy for organizations to raise funds and channel resources toward objectives. These provisions are significant for ensuring financial efficiency and compliance, which enables non-profits to focus on the mission of creating social impact.
In India, registration under the provisions of 12A and 80G is an important certification for non-profit organizations like societies and trusts that allow such organizations to work much more efficiently in fulfilling their objectives. Here are ways in which these registrations aid such organizations:
To apply for 12A and 80G registration in NGOs, Trusts, Societies, and Section 8 Companies must provide specific documents to establish their eligibility and compliance. Below is a comprehensive list:
Applying for 12A and 80G registration for Societies, and Trusts involves a streamlined online process through the Income Tax Department’s e-filing portal. Here is a step-by-step guide:
There are no fees levied by the Income Tax Department for the 12A and 80G registration process for Societies, trusts, and NGOs.
Minor expenses may be incurred, though, in the course of doing so, including:
Note: Although the fee is variable, the entire cost will depend upon the level of applicability and the requirement for professional aid.
State of 12A and 80G Registration for Societies and Trusts Have Disqualified in Several Changes in the Finance Act 2020.
The validity enjoyed by 12A and 80G registration for societies and trusts underwent colossal changes following amendments brought by the Finance Act of 2020. Following is the overview of these ever-dwindling periods of validity:
Conclusion
12A and 80G registrations are a must for non-profit organizations in India to maximize their impact and financial sustainability. These certifications benefit not only the organization and its donors but also give credibility to the organization. In understanding the procedure, fees, and documentation requirements, one can navigate the registration process better.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions (FAQs)
12A registration allows charitable organizations to be exempt from paying income tax on funds used for charitable purposes. It establishes the organization's 2019s eligibility to receive tax-exempt donations and apply for government grants.
With 80G registration, donors can avail of a tax deduction of their contribution made to the entity which makes it an attractive proposition for donors to support the entity.
Yes, newly formed organizations can apply for both registrations as long as they meet the eligibility criteria and provide the required documentation.
12A Registration: Valid indefinitely unless revoked on grounds of non-compliance.
80G Registration: Initially valid for 5 years and requires renewal thereafter.
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