12A 80G Registration - Introduction

12A registration is a crucial step for non-profit entities such as NGOs and charitable trusts in India. It allows these organizations to obtain exemption from paying income tax on their surplus income. Granted by the Income Tax Department, 12A registration helps recognized charitable institutions focus their resources on their core mission without the burden of tax liabilities.80G registration is a provision under the Indian Income Tax Act that enables donors to claim tax deductions on donations made to eligible charitable institutions. By obtaining 80G registration, an NGO or trust can enhance its credibility and attract more contributions, as donors are incentivized through tax benefits for supporting a registered cause.

Benefits of 12A Registration and 80G Registration

1. Income Tax Exemption:
   The NGO’s income is exempt from income tax, provided it is used for charitable purposes.

2. Carry Forward of Surplus Income:
   Any surplus can be carried forward and used in the subsequent year without tax liability (subject to conditions).

3. Eligibility for Government Grants:
   Many government departments require 12A registration for grant eligibility.

4. Credibility and Recognition:
   Registered NGOs enjoy higher credibility with donors, government bodies, and other institutions.

5. Tax Deduction for Donors:
   Donors can claim tax deductions (up to 50% or 100%) on donations made, encouraging more contributions.

6. Attracts More Donations:
   NGOs with 80G are more likely to receive donations due to the tax-saving benefit offered to donors.

7. Enhances NGO Reputation:
   Having 80G approval boosts trustworthiness among corporates and philanthropists.

8. Corporate CSR Eligibility:
   Many companies prefer donating to NGOs with 80G for CSR compliance and tax planning.

Eligibility for 12A and 80G Registration

Eligibility for 12A Registration:

• The applicant must be a Non-Profit Organization such as a Trust, Society, or Section 8 Company.

• The organization must be legally registered under relevant laws:

  • Trust Act (for Trusts)

  • Societies Registration Act (for Societies)

  • Companies Act, 2013 (for Section 8 Companies)

• The organization must be formed with a charitable purpose (e.g., education, relief of poor, medical relief, preservation of environment, etc.).

• No part of the income or assets should be distributed to trustees or members.

• The entity should not engage in profit-making activities.

Eligibility for 80G Registration:

• The entity must be registered under 12A of the Income Tax Act.

• The organization should not have any income benefiting a specific religious community or caste.

• It must maintain regular accounts of its receipts and expenditures.

• The organization should not use its income or assets for any purpose other than charitable objectives.

• Proper books of accounts and audit reports (if applicable) must be maintained.

Process of 12A and 80G Registration

The process of registering for 12A and 80G is an important step for organizations looking to avail tax benefits for their charitable activities. It can, however, be a complex and lengthy process, and requires a thorough understanding of the regulations and guidelines involved. Follow us and get yourself registered successfully.

Steps for 12A Registration Process

Step 1. Before commencing registration for 12A, ensure that you have compiled all the necessary documents required by the authorities (discussed below).

Step 2. Prepare and file the Form 10A application with relevant documents such as trust deed, memorandum of association, and audited accounts.

Step 3. Submit your application form to the Income Tax Commissioner along with the necessary fees.

Step 4. As all the documents are verified & reviewed, a certificate of registration under section 12A will be issued to the organization.

Steps for 80G Registration Process

Step 1. Once you receive your 12A registration certificate, prepare Form 10G, which is a declaration for 80G registration. Fill in the required details & attach the necessary documents.

Step 2. Submit the completed Form 10G with the necessary documents to the Income Tax Department.

Step 3. It can take anywhere around 1 month for the Income Tax Department to approve your application for 80G registration. Be patient & follow up with the concerned authorities to know the status of your application.

Step 4. Once your application is approved, you will receive your 80G certificate. This certificate needs to be renewed every few years to maintain the status of a charitable organization

Documents Required for 12A and 80G Registration

Documents Required for 12A Registration

1. PAN Card of the organization

2. Certificate of Registration under the Societies Act / Trust Deed / NGO Incorporation Certificate

3. Memorandum of Association (MOA) or Trust Deed

4. NOC from the Landlord (if office premises is rented)

5. Copy of Utility Bill (electricity, water, or property tax receipt – as address proof)

6. Details of Trustees / Members – Name, Address, PAN, Contact details

7. Bank Account Statement of the organization

8. Annual Financial Statements – Last 3 years (if applicable)

9. Details of Activities – Brief note on past and proposed charitable activities

10. Form 10A duly filled and signed

Documents Required for 80G Registration

1. Registration Certificate under Section 12A

2. PAN Card of the organization

3. Trust Deed / MOA & Rules and Regulations

4. NOC from Landlord (if office is on rented premises)

5. List of Donors and their PAN (if donations have already been received)

6. Details of Welfare Activities – Evidence of activities and achievements

7. Bank Account Details and Statements

8. Financial Statements – Past 3 years audited reports (if applicable)

9. Form 10G duly filled and signed

10. Board Resolution authorizing the application

YKGGLOBAL: Your Trusted Partner for 12A & 80G Registration

At YKGGLOBAL, we understand that securing 12A and 80G registration is a crucial step for charitable organizations to unlock tax benefits and build donor trust. Our expert team simplifies the entire process — from documentation to timely submission and follow-up — ensuring your organization gets registered smoothly and swiftly.

Why Choose YKGGLOBAL?

• In-depth knowledge of Income Tax regulations

• End-to-end support for documentation and application

• Timely follow-ups and status updates

• Assistance with renewals and compliance management

• Personalized solutions tailored to your organization’s needs

Join thousands of NGOs and trusts who have trusted YKGGLOBAL for hassle-free 12A and 80G registration.

Contact us today to get started and secure your organization’s tax benefits with confidence!