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About 12A/ 80G
12A and 80G are essential for non-profit organizations in India. 12A allows NGOs and charitable trusts to be exempt from income tax, while 80G enables donors to claim tax deductions on their contributions. These enhance credibility, attract donations, and make organizations eligible for government grants and corporate CSR funding. Obtaining both is crucial for startups and NGOs involved in charitable activities, ensuring tax benefits and financial support.
Requirement for 12A / 80G
MoA in case of Section 8 Company and Society
Trust Deed in case of a Trust
List of donors along with their details
Form 10A for u/s 12AB & 80G
Regulations Under 12A/80G
Section 12A of the Income Tax Act (for 12A):
Purpose: Provides exemption from income tax to NGOs, charitable institutions, and religious trusts.
Key Regulations:
- Eligibility: All trusts, NGOs, societies, or other charitable and religious institutions are eligible for 12A.
- Tax Benefits: Organizations registered under 12A are exempt from paying income tax on their surplus income (donations, grants, etc.), as long as they utilize the income for charitable purposes.
- Application Process:
- Form 10A must be submitted.
- The application can be made within one year from the date of the establishment of the organization.
- Validity: Under 12A was earlier a one-time process, but after the amendment in 2020, it is now subject to renewal. The renewal needs to be done every five years.