80G and 12A Registration

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    80G and 12A registrations provide tax exemptions under the Income Tax Act, 1961, for non-profit entities. Section 80G allows donors to claim deductions on their contributions, while Section 12A exempts the organization from income tax.

    • Tax Exemptions: Section 12A exempts the organization from paying income tax on its surplus funds.
    • Donor Benefits: Section 80G provides tax deductions for donors, encouraging donations.
    • Enhanced Credibility: Improves trust and transparency among donors and stakeholders.
    • The organization must be a trust, society, or Section 8 company.
    • It should be engaged in charitable, religious, or philanthropic activities.
    • The organization’s objectives must align with the provisions of the Income Tax Act.
    • Section 12A: Governs income tax exemption for non-profits.
    • Section 80G: Regulates tax deductions for donations to charitable entities.
    • Organizations must maintain proper financial records and utilize funds exclusively for charitable purposes.
    • Ensure the organization’s objectives align with charitable purposes.
    • Maintain proper financial records, including audited statements.
    • Establish a clear utilization plan for donations and funds.
    • Step 1: Submit Form 10A for both 12A and 80G registration.
    • Step 2: Provide supporting documents such as financial statements and governing documents.
    • Step 3: Respond to queries or additional requirements raised by the Income Tax Department.
    • Step 4: Receive the Registration Certificate upon approval.
    • Delays due to incomplete documentation.
    • Rejections due to non-compliance with charitable objectives.
    • Inadequate financial records or improper utilization of funds.
    • Trust deed, MOA, or Articles of Association.
    • PAN card of the organization.
    • Audited financial statements for the last three years.
    • Activity report detailing charitable activities.
    • Submit the application via the Income Tax Department’s online portal.
    • Processing time is typically 3-6 months, subject to approval.
    • Application Fee: None (government filing fees are not applicable).
    • Professional Fees: For drafting documents, filings, and advisory services.
    • Estimated Total Cost: Rs. 10,000 to Rs. 25,000, depending on professional assistance.

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