A Complete Guide to 12A and 80G Registration for NGOs in Delhi
Establishment of an NGO is a cause of welfare with an aim to
return to society in a productive way. But, to carry on business and accept
donations, Indian NGOs must comply with some legal registrations — mostly 12A and 80G
registration. The registrations don't only give your NGO a legal
existence in the eyes of the Income Tax Department, but also render your NGO
attractive to donors by offering them tax refunds.
Here, within this blog, we are going to guide you through
everything that you would like to learn about 12A and 80G registration, especially if you are from Delhi or wish
to submit online. We will be talking about the benefits of
12A registration, eligibility, process to register under 12A and 80G,
and the application form for 12A
registration.
What is 12A
Registration?
12A registration is offered to NGOs, charitable trusts, and
Section 8 companies by the Income Tax Department of India. While registering
under 12A, an NGO's income will not come under the taxation slab according to
the Income Tax Act.
Key Points:
·
It becomes obligatory for NGOs who are seeking
relief in income tax payment.
·
It is a perpetual registration that never has to
be renewed (except when revoked by the IT Department).
·
12A registration is not carried out if donations
and grants received by the NGO can be taxed as income.
What is 80G
Registration?
80G registration enables donors to avail a deduction in tax
on the donated amount to an NGO. Having 80G certification, your NGO will be
more appealing to potential donors, individual as well as corporate sponsors.
Key Points:
·
The donor is entitled to a deduction of 50% or
100% (as per the specified limits) under Section 80G of the Income Tax Act.
·
Enables NGOs to generate extra revenues by
leveraging tax relief for contributors.
·
Must be refiled after a time gap of 5 years.
·
Benefits of 12A Registration
12A registration
offers a lot of benefits:
Tax Exemption:
The primary benefit is that the income of the NGO is not subject to taxation.
Eligibility under
Government Schemes: Government schemes and grants are given preference to
12A NGOs.
Increased Credibility:
It enhances the credibility of the company before donors and the regulatory
authority.
Increased Financial
Strength: There is increased money in the company, and it can undertake
additional projects.
Eligible Who can get
12A and 80G Registration?
·
Charitable Trusts
·
Societies registered under Societies
Registration Act
·
Non-profit Section 8 Companies
·
Religious or educational institutions (subject
to some restrictions)
How to Apply for 12A
Registration?
The procedure for 12A registration of NGOs is now conducted
online on the Income Tax Department official website. Procedure is as follows:
Step 1: Document
Preparation
·
NGO's Registration Certificate (Trust Deed / MOA
& AOA)
·
NGO's PAN Card
·
Proof of address of registered office
·
Member information (Aadhar & PAN)
·
Balance Sheets and Profit & Loss accounts
for the past 3 years (if any)
·
Activity Report
Step 2: Online
Submission
·
Visit Income Tax E-Filing Portal
·
Become registered taxpayer for your NGO
·
Upload Form 10A to register 12A
Step 3: Verification
& Scrutiny
·
The form is verified through DSC (Digital
Signature Certificate) or EVC (Electronic Verification Code).
·
The application is checked by the CIT
(Exemptions), who may request other documents.
Step 4: Issue of
Registration Certificate
Satisfied, the CIT issues the 12A certificate.
80G Registration
Process
Once your NGO is registered under 12A, you can apply for 80G
registration. Here's how to do it:
Step 1: Prepare
Required Documents
·
12A Registration Certificate
·
PAN of NGO
·
Governing document (Trust deed or MOA/AOA)
·
Bank account details
·
List of donors (if any)
Step 2: Apply through
Form 10AB
·
Log on to the e-filing portal
·
Submit Form 10AB in the "Income Tax
Exemptions" section
Step 3: Verification
and Approval
·
Upload supporting documents
·
The department may request further
clarifications
·
Upon correctly verified, you will be handed the
80G certificate
12A and 80G
Registration Process in Delhi
Delhi has no shortage of NGOs working in different areas
such as health, education, environment, and social justice. 12A and 80G
registration in Delhi stands no different to other Indian states with
the advantages of proximity to numerous professional advisors and lawyers.
If you are looking for 12A 80G registration
in Delhi, online portals like NGO Partners offer start-to-end services
like document preparation, online filing, follow-up, and advisory services.
12A 80G Registration
Online – The Convenient Option
12A and 80G filing is now being compulsorily done online by
the government, making NGO registration simpler across India. Here is why online registration
of 12A 80G is ideal:
·
Quicker processing
·
Paperless submission
·
Live tracking
·
National accessibility
Even NGOs operating in remote areas can submit without
visiting tax offices.
General Issues and
How to Handle Them
Although the online process has simplified things, there are
some typical problems:
·
Lack of Proper Documents: Your application would
be rejected if one document is missing. Always double-check.
·
Unclear Mission Objectives: Mission and
charitable objectives of your NGO must be clearly outlined in constituent
documents.
·
Delays in communications: Keep an eye on email
or portal notices for tax department inquiries.
Professional service will guarantee error-free and timely
enrollments.
If you're running or intend to run an NGO, 12A and 80G
registration is not just a regulatory necessity, but essential for your
viability on the financial front. With the online process, these registrations
are simpler to obtain than ever.
If you require 12A 80G registration
in Delhi or wish to obtain 12A 80G registration online, expert services
are one click away. At NGO Partners, we help NGOs with the whole process of
registration, documentation, and filing so that you can focus on the most
important aspect — making a difference.
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