12A and 80G Registration

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Obtain 12A registration effortlessly with Bookmycompliance to get tax-exemption for your charitable organization and get 80G registration for your charitable organization with Bookmycompliance and allow donors to claim tax deductions.

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Table of Content

Apply Online for 12A and 80G Registration
What is 12A and 80g Registration?
Who can apply for 12A and 80G registration?
Eligibility Criteria for 12A 80G Registration
Validity of 12A and 80G Registration

Apply Online for 12A and 80G Registration

In India, non-profit organisations can benefit significantly from two specific registrations provided by the Income Tax Department: 12A and 80G. The 12A registration grants non-profit organizations an exemption from paying income tax on their earned income, which can greatly aid in maximising the funds available for their charitable activities. Additionally, the 80G registration offers a substantial benefit to the donors of these organisations, allowing them to claim deductions on their taxable income for any donations made. So, the 12A and 80G registration process online must be done by the non-profit organisations to avail tax deduction benefits.

At Bookmycompliance, we understand the importance of obtaining Section 12A and 80G registrations for your non-profit organisation. We offer comprehensive assistance and guidance throughout the registration process to help you get the benefits and privileges provided under these sections of the Income Tax Act.

What is 12A and 80g Registration?

12A and 80G registrations are critical tax provisions for NGOs in India, enabling charitable institutions to avail themselves of specific tax exemptions and benefits. These exemptions are governed by Sections 12A/12AA and 80G of the Income Tax Act of 1961:

12A Registration

This certification is provided under the Income Tax Act 1961 to non-profit organisations in India. Once registered under Section 12A, an NGO becomes eligible for tax exemption on its income, meaning it doesn’t have to pay tax on surplus funds generated through grants, donations, or other revenue as long as these funds are used for charitable purposes. This registration is crucial for NGOs as it helps in maximising the funds available for their activities.

80G Registration

While 12A registration benefits the NGO, 80G registration is intended to incentivise donors. It allows individuals or entities who donate to a 12A-registered NGO to claim a deduction on their income tax. This deduction is a percentage of the amount donated and can significantly reduce the donor’s taxable income. The purpose of this provision is to encourage more donations by providing financial benefits to donors.

The key difference between 12A and 80G is that 12A registration provides tax exemption on an NGO’s income, while 80G registration allows donors to avail tax deductions on their donations. Both registrations enhance NGOs’ ability to attract contributions by offering fiscal advantages to both the organisations and their benefactors. So, it is useful to register and obtain the 12A 80G certificate.

Who can apply for 12A and 80G registration?

The following types of organisations are eligible to apply for 12A 80G registration,

Charitable Trusts: Organizations established for charitable purposes.
Registered Societies: Societies that are formally registered under the Societies Registration Act or similar state laws.
Section 8 Companies: Companies formed under Section 8 of the Companies Act 2013 specifically for promoting charitable activities.
Religious Organizations: Groups that primarily focus on religious activities and charitable work.
Educational Institutions: Non-profit schools, colleges, and educational foundations.
Medical Institutions: Non-profit hospitals and medical research organisations

Validity of 12A and 80G Registration

The validity of 12A and 80G registrations depends on the type of registration obtained. There is no annual renewal requirement; however, registrations must be renewed periodically. Provisional registration is granted for a period of 3 years, while the validity of regular registration is for 5 years. The renewal process must be initiated at least 6 months before the expiry of the current registration. For example, if the validity is up to 31st March 2025, the renewal application should be submitted on or before 30th September 2024 to ensure continuous compliance.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

Income Tax Return

Income Tax Advisory

Internation Taxation & NRI Return Filing

Audit & Assurance

Accounting & Virtual CFO

GST Return

GST ADVISORY

Other Compliances

Annual Compliance- Individual Business

Annual Compliance- Company

Annual Compliance- LLP

Compliance- NGO / Trust

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