12A 80G Reg.

12 A 80 G

12A & 80G Registration ensures that Income of an organization is exempted from Income Tax if an NGO has this registration. If an organization has obtained certification under section 80G of Income Tax Act, then donors of that NGO can claim exemption from Income Tax.

The charitable institutions are eligible for certain tax exemptions and benefits in India. The exemptions and benefits are dealt with under Sections 12A/12AA and 80G of the Income Tax Act, 1961.

Section 12A of the Income Tax Act, 1961

• Registration of trust or charitable institutions under section 12A/12AA certifies that the Income Tax authorities recognise the registered institution or trust as having been incorporated or established for a charitable purpose.
• The effect of such recognition is that the respective institutions are exempted from paying income tax, subject to the satisfaction of certain other compliance requirements as per law.
• Section 12A deals with institutions and trusts registered before 1996, and Section 12AA deals with institutions and trusts registered after 1996. The NGO’s have to obtain a 12A certification to avail tax benefits, regardless of whether they are constituted as a society, trust or not-for-profit company.

Document Required

• Copy of PAN of NGO.
• The organization's PAN card.
• Certificate of Incorporation.
• Aadhar Certificate.
• If your NGO is a trust, you'll need a trust deed.
• Memorandum of Association (MOA) .
• The Articles of Association (AOA).