Section 80G and 12AA Registration
What is Section 80G and 12A?
An NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The Income Tax Act 1961 has certain provisions which offer tax benefits to the "donors".
What is Section 12A of Income Tax Act?
Income of an organization is exempted if NGO has 12A registration of Income tax. This is one time registration.
What is section 80-G of Income Tax Act?
If an organization has obtained certification under section 80G registration of Income Tax Act then donors of that NGO can claim exemption from Income Tax. Earlier it was not one time registration and trust were required to get 80G Certificate renewed after validity period.
But As per Circular 7/2010 dated 27.10.2010 issued by the CBDT, all Trusts enjoying exemption u/s 80G as on 1.10.2009 and other Trusts obtaining 80G certificate after 1.10.2009 shall continue to hold and enjoy the same for perpetuity unless revoked by the Income Tax Authorities.
When an organization can apply for registration under section 12A and 80G of Income Tax Act?
Application for registration under section 12A and 80G can be applied just after registration of the NGO
Documents Required for Section 80G and 12AA Registration
Process Involved
Step 1
Documentation
Step 2
Submission of application
Step 3
Notice for clarifications from Income Tax Department in 2-3 months after Application
Step 4
Reply of notice along with desired documents.
Step 5
Personally visit the Income Tax Department
Step 6
Exemption Certificate
