12A & 80G Registration is a registration under the Income Tax Act 1961 for Section 8 Companies, NGOs, trusts, and societies for availing exemption in Income Tax. For claiming exemption under section 11 & 12 of the Income Tax Act, one must obtain 12A registration, which must be issued by the Income Tax Department to the NGO, trust, Section 8 companies, and society. Section 12A allows one-time exemption from paying taxes on surplus income. If an NGO doesn’t obtain 12A, then it must pay income tax on surplus. 12A registration is a one-time registration and hence can be used for a lifetime if not cancelled. 80G is issued to give benefits to the donor, allowing the donor to get 50% exemption if they donate for any of the charitable activities applicable to such NGOs, thus encouraging people to provide more donations. At firststartup, we provide a facility to get 12A & 80G registration with complete compliance in 25 days.

Advantages of Registration

• Expenditure incurred will be allowed as a deduction while computing Income
• Accumulated income is allowed up to 15%
• Eligible for various grants from government and other agencies
• 50% exemption from taxes to Donor
• Benefits in FCRA Registration
• One-time Registration
• Enhances the confidence associated with the NGOs
• Eligible for availing government funding

Eligibility Criteria

• NGOs must be formed for Charitable purposes
• NGOs should maintain proper books of accounts
• NGOs should not be formed for a specific benefit of community, religion, or caste
• NGO should not have any income which is exempted from tax such as company income
• Laws and objectives of NGO should contain charitable activities
• Food safety management plan
• Address Proof of business operator (Passport / Voter ID / Driving License)

Documents Needed

• Registration COI
• Identity Proof of Members/Directors (i.e. PAN)
• Address Proof of Members/Directors
• DSC of Directors
• AOA & MOA Copies
• Details of activity conducted
• Audit Reports
• Financial Statements
• Latest Electricity bill, telephone bill & Bank statement of Members/Directors
• Passport size photo of Members/Directors

Reasons for Cancellation

• If used against the objectives of the organisation
• Not Genuine
• Harming certain religion or caste
• Funds have been used inappropriately
• Profit is used for personal benefits

Steps to Register for 12A & 80G

1. Fill our 12A & 80G registration form online
2. File an application in Form 10 (Mandatory requirements should also be complied before papers & forms submission)
3. Filing of legal papers & forms with the Commissioner of Income Tax
4. Commissioner will scrutinise the genuineness of the forms and respond to any queries
5. Commissioner of Income Tax will grant registration if all the forms are complied with.