Updated on June 09, 2025 06:06:28 PM
Bihar is a place of historical importance and cultural richness, with many organizations working for social and economic development. NGOs, trusts, societies, and Section 8 Companies are crucial for the state in solving education, health, and poverty-related issues. For strengthening their financial sustainability and gaining donor support, 12A and 80G registration under Income Tax Act, of 1961 would greatly benefit these organizations.
12A Registration provides income tax exemptions to non-profits, meaning that the money they raise through donations, grants, or other means is not taxed. Organizations can use all their income for charitable purposes, thus maximizing their impact in communities across Bihar.
80G Registration gives the donors tax benefits. It makes donations to registered organizations eligible for tax deductions. Therefore, individuals and corporations can contribute generously to these organizations, and this helps to increase the fundraising abilities of non-profits and promote a culture of philanthropy.
The online application procedure under the Income Tax Department's e-filing portal has streamlined the process, thus being available to all organizations across Bihar. The 12A and 80G certification not only add credibility but also help in strengthening financial management. The same enables non-profits to focus on their mission to create social change in the state.
12A & 80G Sample Documents
Table of Content
12A and 80G registration are critical compliance under the Income Tax Act, 1961, for NGOs, Trusts, Societies, and Section 8 Companies in Bihar involved in charitable, educational, or religious activities. Both the organization and donors are entitled to tax exemptions with these registration, making philanthropy more sustainable.
12A Registration Exemption income of charitable organizations from income tax. So, NGOs and Non-profits in Bihar could use all their income to carry out their charitable work without having to pay a single penny as tax - whether donation, grants, or otherwise.
80G Registration grants tax relief to donors as they can deduct their donations from the list of Section 80G of the Income Tax Act. This encourages people as well as companies to give to the registered organizations thereby increasing funds and encouraging generosity.
The 12A and 80G Registration for Non-profits of Bihar plays a crucial role for them as it increases credibility and financial stability.
The benefits of having 80G and 12A registration for charitable organizations and NGOs are many and far-reaching in day-to-day operational features:
To apply for 12A and 80G registration in Bihar, 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 in Bihar 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. The procedure is free for those eligible organizations that apply.
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.
Surely, the validity of Sections 12A and 80G registration starts from provisional registration which is for three years. To maintain the status of the provisional registration, an application can be initiated either six months before its expiration or six months from the inception of operations, whichever is earlier, for renewal purposes. Upon renewal, such registration get another five years. The same process will go on every succeeding five years to remain covered.
Conclusion
12A and 80G registration are very important to NGOs, Trusts, Societies, and Section 8 Companies in Bihar to reach out to the maximum possible donors and ensure financial sustainability. These registration help in offering tax exemptions to organizations as well as tax benefits to donors, thus providing a win-win situation for boosting philanthropy and optimum usage of resources.
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.
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Frequently Asked Questions (FAQs)
12A Registration grants NGOs, Trusts, Societies, and Section 8 Companies income tax exemption based on charitable, religious, or educational activities.
80G Registration offers donors tax deduction benefits from donations to the organization. This builds people's confidence in contributing more and thereby adds to the organization's credibility.
These are charitable, religious, or educational trusts and societies and section 8 companies.
There is no fee from the Income Tax Department for an application. Incidental costs will be paid to prepare documents, obtain legal assistance, and for administrative overheads.
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