Darshan Corporate Pvt Ltd is your guide to 12A and 80G Registration. Are you a charitable or religious organization that wants to assure your donors that their contribution makes a difference and is eligible for tax deductions? We help you to enjoy the benefits of income tax exemption for your charitable and religious organizations. The tax law provides special rebates to charitable, welfare societies, non-profit organizations, and religious institutions under sections 12A and 80G.
What is 12A registration?
12A registration helps you to receive income tax exemptions on the funds you raise. This registration provides the organization with tax exemptions on their income. They are required to maintain proper accounts and adhere to certain guidelines and regulations.
Explain 80G registration:
Section 80G of the Income Tax Act helps charitable and welfare societies build credibility and transparency to donors as their contribution is tax-deductible. It helps to attract donors and improve the credibility of your charitable, trust, and social causes.
The distinction between 12A and 80G registration:-
The primary difference is Section 12A offers tax exemptions to charitable institutions, whereas Section 80G provides deductions to donors on donations made by them.
According to the Finance Bill, 2020, some major amendments have been made to the registration:
- Section 12AB, replaced the existing section, 12AA.
- The registration and approval process for NGOs is completely online.
- Due to this scheme, registration would be granted for 5 years only. This ought to be renewed after every 5 years.
- Provisional registration would be granted for 3 years to begin their activities.
Some more forms introduced for charitable institutions:-
According to sections 11 & 12, the person has to make the application in the prescribed conditions including 10A, and 10AB to the principal commissioner.
- When to use the form 10A or 10AB?
- Conversion of provisional registration to regular registration.
- Renewal of registration after every 5 years.
- Re-registration for objects alteration of entities registered u/s 12AB.
The documents for 80G & 12A registration:
- Income tax portal login ID and password of the applicant.
- PAN card copy of the applicant..
- Contact information of the applicant..
- MOA and trust deed..
- The details of Darpan registration, if the applicant is registered on the Darpan Portal..
- The details of registration under FCRA (Foreign Contribution Regulation Act), if the applicant is registered under this Act..
- Details of settlor/ members of the trust/ institution including their PAN, Aadhar card, address, mobile, and email ID..
- Financial statement of 3 years.
- Self-certified copy of registration u/s 80G, if any..
- Self-certified copy of existing registration u/s 12A, 12AA, or 12AB, if any..
The process for registration under sections 12A and 80G can be categorized into 3 sections: Re-registration
Re-registration process is liable for all the institutions registered under sections 12A, and 12AA, or are approved under sections 80G, 10(23C), or 35AC of the Income Tax Act, 1961. Form 10A should be filed through the e-filing portal of the Income Tax Department for acquiring re-registration. The validity period for re-registration is 5 years. The same application can be filed twice to get registered under various sections.
The charitable/ trust can apply for provisional registration through Form 10A. They can get provision approval for 3 years. The application can be filed 1 month before the commencement of the previous year in which the activities have to be started. The validity period for new registration is 3 years.
Renewal of the existing registration
The renewal of existing registration is valid for NGOs registered under 12AB or approved under section 80G, or section 10 (23C). NGOs or trusts can file a new application for renewal within 6 months before the expiry of 5 years from NGO registration. The commissioner will make mandatory inquiries about the genuineness of the NGO activities and its compliance. If he finds the NGO is fraudulent or involved in any kind of scam, the application will be rejected soon.
How do we help?
We at Darshan Corporate offer the finest consultation services on 12A & 80G Registration in Delhi. We are committed to providing hassle-free services including registration approval. Our professional squad is well-versed in 12A & 80G approval matters.
You need to know before begin everything.
Only the form 10A/ 10AB has to be filed under registration under sections 12AB and 80G. The form has to be filed separately for registration under each section..
The form 10A/ 10AB shall be signed digitally. In other cases, the form is submitted with an Electronic Verification Code (EVC) only.
Even if the LLP is not doing any business, it is mandatory to file annual compliance and financial statements with the Ministry of Corporate Affairs. If the trust or institution is found fraudulent or not being carried out according to the guidelines and compliance of NGO registration. The chance of order cancellation is higher.
Form 10A/ 10AB shall be verified by the authorized person of the institution or NGO.