80G & 12A Registration Rules in India

Introduction

In India, non-profit organisations can register under 12A to get income tax exemption on their earnings. They can also apply for 80G, which lets donors claim tax deductions on donations made to them. Both registrations help NGOs save money and attract more donations.

What is 12A registration? 

12A registration is a certificate that gives tax exemption to NGOs in India. It allows them to save tax on donations and grants used for charitable work. This helps NGOs keep more funds for their social activity. It is an important step for them to grow and do more good.

 What is 80G Registration? 

80G registration gives tax benefits to people or companies who donate to NGOs. It lets them reduce part of the donation from their taxable income. This helps donors save money on taxes. The goal is to encourage more people to support NGOs through donations.  

What Has Changed in the New Rules?   

Recent amendments under the Income Tax Act (especially post-2020) brought several compliance updates:

1. Re-registration is Mandatory  

• All existing NGOs with 12A and 80G registrations must re-register under the new scheme.

• This ensures uniformity and better regulation of charitable institutions.

2. Validity Period Introduced  

• New and re-registered 80G/12A certificates are valid for 5 years.

• NGOs must renew them before expiry to maintain tax benefits.

3. Form 10A and 10AB Filing  

• Form 10A is used for initial or fresh registration.

• Form 10AB is used for renewal after 5 years or for conversions.

4. Increased Scrutiny  

• Authorities now closely review the activities, financials, and compliance of NGOs.

• Only genuine charitable institutions qualify for approval.

5. Mandatory Filing of Statements  

• NGOs must file annual statements of donations (via Form 10BD) and issue donation certificates (Form 10BE) to donors.

 What NGOs Must Do ?

• Check your registration status: If registered before April 2021, you must have applied for re-registration.

• Track validity: Stay alert to your registration’s expiry and apply for renewal via Form 10AB in time.

• File donation reports: Submit Form 10BD annually and issue Form 10BE to all donors.

• Stay compliant: Keep accurate records, ensure genuine activities, and follow reporting obligations.

 Online Registration Process of 12A and 80G  

Under the Finance Acts of 2020 and 2021, Form 10A is now mandated for registrations under Sections 12A and 80G of the Income Tax Act. We have outlined the revised 12A and 80G registration process online in a detailed.

• Step 1: NGO Formation and Registration: Choose your NGO type and get it officially registered.

• Step 2: Document Preparation: Collect all important documents like registration certificate, trust deeds, financial and ID proofs

• Step 3: Application Preparation: Fill out form 10A with accurate details about your NGO and its activities

• Step 4: Application Submission: Submit form 10A and documents online through the Income Tax Departments portal

• Step 5: Review and Inspection: The Income Tax Department will check your documents and may review your NGO’s work

• Step 6: Registration Confirmation: If approved, you will receive a registration certificate; otherwise, you may be asked to provide additional clarification or documents.

• Step 7: 12A and 80G Registration Certificate: Once approved, you will receive a certificate confirming your NGO’s tax exempt status

 Documents Required for 12A and 80G Registration Process 

• Trust deed/Society Registration certificate/Section 8 Company Certificate

• Memorandum of Association and Articles of Association(for section 8 companies only)

• PAN Card of Organisation

• Bank Account Statement of Organisation

• Audited Accounts of the Organisation for the last three years

• List of trustees or members or directors of the organisation

• List of Activities carried out by the Organisation

Conclusion 

12A and 80G registrations through Form 10A help NGOs save on tax and collect more donations. It also helps the donors as tax exemption, which encourages them to provide more. As it is an online process, proper documents and approvals are needed. Once it is approved, NGOs can use it more directly for charitable work.

 FAQs 

1. What is 12A registration?

12A registration lets non profit organisations avoid paying tax on their income so they can use more money for charity.

2. What is 80G registration?

80G registration gives tax benefits to people who donate to NGOs, encouraging them to give more.

3. Can an NGO avail both registrations simultaneously?

No, an NGO must first obtain 12A registration before applying for 80G.

4. What are the key benefits of 80G registration for donors?

Donors can avail tax deductions on their taxable income when contributing to NGOs with 80G registration, which makes it an attractive incentive for supporting charitable work.

5. What are the 12A and 80g registration fees?

No government fees are charged for both except you pay for professional fees.

6. What is the renewal of 12A and 80G registration last date?

Renewal must be applied for at least six months before expiry or within one year prior, whichever is earlier.

7. How often do 12A and 80G registration needs to be renewed?

After the initial 3 year provisional period, the registrations are renewed for 5 years at a time.

8. How can I apply for 12A and 80G online?

You can apply by filing form 10A on the Income Tax Department’s website and submitting the required documents.

9. Can any specific sectors or activities benefit from section 12A and 80G registrations?

These registrations help NGO’s doing work like education, healthcare, or poverty relief, but they must meet certain rules to apply.

10. Can Organizations generating revenue apply for 12A and 80G?

Yes, an NGO with revenue can apply, provided the income from business is incidental and separate books are maintained.