Understanding 12A and 80G Registration for NGOs: Procedure, Advantage, and Eligibility
Whether you have a not-for-profit organization in India or are about to start one, it is imperative that you learn how to achieve 12A and 80G registration . Not only does it lead to vast tax relief, but it also makes your organization legally valid as per the donors and government departments. Today in this blog post, we are going to walk you through the process of achieving 12A registration, advantages, who are eligible to apply, and what documents are required. What is 12A Registration of NGOs? 12A registration of NGOs is a certificate issued by the Income Tax Department of India that exempts charitable trusts from taxation. Once an NGO has registered under Section 12A of the Income Tax Act, it does not have to pay income tax on its excess income if the income is utilized only for charity. What is 80G Registration? While 12A registration grants exemption to the NGO from tax, 80G registration grants tax deduction to donors who contribute their contribution to the NGO. Th...