Understanding 12A and 80G Registration: A Comprehensive Guide for NGOs
Non-Governmental Organizations (NGOs) play a crucial role in addressing social, environmental, and economic challenges. To effectively carry out their mission, NGOs in India must comply with various regulatory requirements. Among these, obtaining 12A and 80G registration is critical for establishing credibility, raising funds, and enjoying tax benefits. This blog delves into the significance of 12A and 80G registration, the application process, and the benefits they offer to NGOs. What is 12A Registration? 12A registration is issued by the Income Tax Department of India under the Income Tax Act of 1961. It grants NGOs the status of a charitable organization, exempting their income from taxation. This exemption ensures that funds intended for social welfare are not diminished by tax liabilities. Benefits of 12A Registration: Tax Exemption : Income generated through donations, grants, or other sources is exempt from income tax, provided it is used for char...