Section 12 A and 80G Registration
Income Tax Act 1961

All That You Need To Know About Section 12 A and 80G Registration

 Benefits to Donors

A donor to a charitable trust or non-profit NGO can get income tax benefits. A donor can be an individual or an organization that pays income tax. If the donations were made to a trust that holds registrations under sections 12A and 80G of the income tax act, the donated amount will be reduced from the gross total income.

How To find Out If a Non-Profit NGO has 12A and 80G Registration?

It is public information. Most trusts announce their certifications including 12A and 80G on their websites and other stationery. Before making a donation you can ask the representatives for clarification.

Is It Mandatory For a Charitable Trust To Have 12A And 80G Registrations?

Trusts or NGOs that are not having these registrations will have to pay income tax for all the donations that they receive.

Can a Trust Have Only 80G and Avail Benefits

A document that should be submitted along with the application for 80G is 12A. So a trust or an NGO cannot even apply for 80G without first getting enlisted under 12A.

At the same time, the income tax laws permit applying for both 12A and 80G together.

There are expert organizations that deal in getting 12A and 80G approvals for trusts and other eligible organizations. It is best to consult a good company that will guide you to get all the necessary certifications. 

Applying for 12A

Rule 17A of the income tax act 1962 deals with this. The application should be made on form 10A. 

Documents to Accompany Form 10A

a) Self attested copy of trust deed.

b) Self attested copy of registration certificate issued by the registering authority.

c) Self attested copy of amendments approved by the board of trustees.

d) Self attested copies of financial statements for the previous years. (Not applicable if the trust or NGO did not exist during that period)

e) Short note on the activities of the NGO.

f) Self attested copy of negative results of previous applications if any for 12A or 12AA.

In spite of compiling all the required documents, an application on the relevant form to get 12A can get rejected. There are many reasons.

How to Avoid Rejection By The Income Tax Commissioner?

First find a trustworthy company that specializes in income tax affairs and registration for 12A. An experienced organization will lead your NGO or trust to get the 12A registration without any hassle in a very short time. 

For Online Submission of Form 10A

i) Digital signature has to be obtained by the applicant.

ii) A verification code is required in the absence of the above.

iii) Verification of the application will be conducted by the same authority who will be scrutinizing the returns under section 140. 

Requirements for Getting 80G Approval

All the conditions are contained in section 80G (5.)

i) The charitable trust should not engage in any profit making activities.

ii) The trust or nonprofit NGO should not include any incomes under the provisions of clause 23AA or clause 23C of section 10 or sections 11and 12 of the income tax act.

iii) The trust deed should not have a provision to receive any assets or have any income to accomplish a purpose that does not come under the purview of charity.

iv) The NGO or trust applying for 80G should maintain and update all income and expenses in a transparent way.

What Types of Entities Can Apply for 80G registration?

a) Company registered under section 8 of the companies act 2013. 

b) Public charitable trust.

c) Society

d) University established under the prevailing laws or affiliated with an existing university.

e) An organization running partly or fully on government aid. 

Registration Procedure for 80G

It was advised by a reputed company specialized in NGO and charitable trust related registrations that the procedure should be according to rule 11AA of the income tax. 

1. Application should be made in form 10G.

2. Form 10G should be submitted online.

3. The authority who will take care of the proceedings shall be either the Director General or the Principal Director General of income taxes. 

4. The applicant can be asked to submit more documents if the verification process may require so.

5. If the verifying authority is satisfied with the scrutiny as laid out in section 80G(5), he or she will approve the application.

6. In case the verifying authority was not satisfied, the application will be rejected.

What should be Done If An Application By a Charitable Trust or Nonprofit NGO For 80G Is Rejected?

The concerned authorities will first inform the applicant all the reasons that led them to take the decision for rejection. Then the applicant will be given a chance to present their views

Instead of going through all the lengthy procedures and paperwork to apply for 12A and 80G registrations, a wise individual will always seek the help of professional institutions that specialize in income tax.

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

Section 12 A and 80G Registration
Maniraj Anantham 1 March, 2024
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