80G / 12A Registration & Certificate
Tax Exemptions for Non-Profit Organisations
12A registration exempts trusts and NGOs from income tax. 80G enables donors to claim tax deduction on contributions. Both are essential for non-profit organisations.
What is 12A Registration?
12A registration is a one-time registration granted by the Income Tax Department to trusts and other not-for-profit organisations. The purpose is to be exempted from the payment of income tax. Section 8 Companies, Trusts and NGOs which have obtained 12A registration enjoy exemption from paying income tax on their surplus income.
Eligibility for 12A
- • Charitable purpose: relief to poor, education, medical relief, environment preservation
- • No profit motive in activities
- • Trade/commerce receipts less than 20% of total receipts
- • Not applicable for Private or Family Trusts
12A Benefits
- • Income free from Income Tax
- • Accumulation benefits (up to 15%)
- • One-time registration, no renewal needed
- • Eligibility for domestic and international grants
What is 80G?
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G. This deduction can be claimed by any taxpayer – individuals, company, firm or any other person. Donors can reduce tax liability by up to 10% for 50% of the amount donated.
80G Eligibility Criteria
- • Separation of Business & Charity
- • No misuse of donations
- • No religious activity for particular caste/creed
- • Proper accounting maintained
- • Registered under Societies Act 1860 or Section 25 Companies Act
Documents for 80G (Form 10G)
- • Registration Certificate, MOA/Trust Deed
- • NOC from proprietor of registered office
- • PAN Card, utility bills
- • Proof of welfare activities, Progress Report
- • Statement of accounts, List of contributors
- • 12A registration copy
Note: From FY 2017-18, cash donations exceeding Rs 2,000 are not allowed as deduction. Donations above Rs 2,000 must be made via cheque/draft.
Documents for 12A Registration
- • Self-certified copy of trust deed or establishment document
- • Registration copy from ROC/Registrar of Societies/Public Trusts
- • Documents for adoption/modification of objectives
- • Annual financial statements for 3 preceding years
- • Note on activities conducted
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