12A and 80G Registration
12A and 80G are registrations available under the IT Act 2000, allowing NGOs and donors to ensure tax savings on their income, respectively. Whereas 12 A registration serves non-profit entities (NGOs), 80G registration essentially caters to donors who make funds available to charitable entities. Either registration ensures the non-deduction of taxes from taxable income.
Who Can Have Access to 12A and 80G Registration?
As per the Income Tax Act 2000, 12 A and 80G registration are available to charitable entities registered under one of the following legislations:
- The Trust Act 1882
- Section 8 under the Companies Act 2013
- Societies Registration Act 1860
An Outlook on Benefits Available Under 12A and 80G Registration
Registering under 12A and 80G of the IT Act 2000 can lend several to taxpayers. These include:
Tax exemption
12A registered entities are not exposed to any taxes on their income provided their object involves serving charitable goals such as but not limited to:
- Serving unpreveliaged
- Upholding societies
- Providing education and medical aid
- Preserving monuments
Donor benefits
Donors making funds available to NGOs with charitable intentions are not required to pay taxes on their taxable income. This encourages donors to continue serving their philanthropic endeavors, making significant contributions toward societies.
Credibility
12A and 80G registration aren’t available to unregistered entities or illicit donors, reinforcing the credibility of the certificates. Those with these certificates can garner improved trust and reputation among peers.
Paperwork Consideration for 12A and 80G Registration
The following documents are required for 12A and 80G registration:
- PAN card of the organization
- Trust deed, society registration certificate, or Section 8 company certificate
- Memorandum of Association and Articles of Association (for Section 8 companies only)
- Bank account statement of the organization
- Audited financial statements for the last three years
- List of trustees, members, or directors
- Summary of activities carried out by the organization
Key Enclosures For 12A and 80G Registration
The following details are required for 12A and 80G registration:
- Organization’s name
- Location and address
- Contact information
- Type of organization (Trust, Society, or Section 8 Company)
- Mission and objectives
- Key activities and initiatives
- Funding sources
- Details reflecting how funds are utilized
Steps to Secure 12A & 80G Registration
Steps to obtain 12A and 80G Registration are mentioned below:
- Head to the Income Tax portal and explore the e-form section
- Select the 12A or 80G Registration form based on your requirement
- Fill out the form with legitimate details as cited. Do not enter misleading or additional information.
- Once you are done form filling, attach the relevant paperwork in the prescribed format.
- The IT department shall vet the application as well as the paperwork to validate the details you have provided. Note: The department asked you to render additional information or documents if required.
- The department shall approve your request for a 12A and 80G certificate only after vetting the documents successfully.
Note: The grant of 12 A and 80G certificates shall not be instantaneous since the documents undergo an extensive inspection process. Thus, the timeline concerning the grant of these registrations shall vary depending on the number of paperwork to be scrutinized.
Points to Ponder Regarding 12A and 80G Registration
Before you apply for 12A and 80G registration, be sure to keep the following pointers in mind:
- Ensure 100% adherence to eligibility criteria formulated by the Income tax department.
- Be watchful of the format while uploading the paperwork for these registrations. The portal may refuse to upload documents that do not align with the prescribed format.
- Timely submission of the form is paramount for hassle-free application processing. Any delay or error could lead to the application rejection.
- While applying for 12A, ensure to reveal every funding source and amount being fetched. The same goes for 80G registration.
- Avoid incurring delays when it comes to responding department’s queries. The timely response shall lead to seamless application processing, leading to a swift registration grant.
Conclusion
12A and 80G registration can ensure significant tax savings for charitable entities and donors, respectively. Besides, these registrations elevate the credibility of the taxpayers and provide them with several benefits. The IT department rolled out these registrations to promote charitable activities, allowing the underprivileged to have access to what’s necessary. In short 12A & 80G registrations are a boon for those who wish to serve societies at best while staying financially boosted and transparent.
If you wish to secure these registrations seamlessly, you can lodge your request at Advisor’s helpdesk. We help clients secure necessary approvals and certificates in record turnaround time without compromising what’s mandatory.
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