80G and 12A Registration
If you are running a non-governmental organization (NGO) or a charitable trust in India, securing80G and 12A Registration is crucial to ensure tax exemptions for your organization and its donors. We at Vedkee Associates provide expert assistance in obtaining these certifications.
What is 80G and 12A Registration?
The80G and 12A Registration are certifications granted by the Income Tax Department to NGOs, charitable trusts, and religious institutions. These certifications enable organizations to:
- Claim tax exemptions on their income.
- Provide tax deductions to donors under Section 80G of the Income Tax Act.
With80G and 12A registration, NGOs can establish trust with donors while reducing their tax liabilities. Vedkee Associates simplifies this process for you, ensuring timely and hassle-free Registration.
Benefits of 80G and 12A Registration
- Tax Exemptions: Organizations with80G and 12A Registration are exempted from paying income tax on funds received for charitable purposes.
- Increased Donations: Donors contributing to an organization with an 80G certificate can claim tax deductions, motivating more individuals and corporations to donate.
- Credibility: Registration under these sections enhances the trustworthiness and legitimacy of your organization.
At Vedkee Associates, we ensure you leverage these benefits effectively for your organization’s growth.
80G and 12A Registration Fees
The80G and 12A registration fees vary depending on the legal consultant or intermediary assisting with the application. Typically, the government charges are minimal, but the service fees for professional assistance can range betweenINR 5,000 to INR 20,000, depending on the complexity of your organization’s structure and documents. Vedkee Associates offers transparent and competitive pricing to suit your needs.
Documents Required for 80G and 12A Registration
To apply for80G and 12A Registration, you must prepare the following documents:
- Incorporation Documents:
- Trust Deed (for trusts) or Memorandum of Association (for societies or Section 8 companies).
- Financial Statements:
- Audited financial statements for the last three years.
- Bank Account Details:
- Bank statements for the previous six months.
- Activity Report:
- Detailed report of activities conducted by the organization in the last year.
- PAN Card:
- Copy of the organization’s PAN card.
- Other Details:
- List of governing body members with their contact details and identity proofs.
Vedkee Associates ensures that all yourdocuments required for 80G and 12A registration are prepared and verified accurately to avoid delays in the process.
Process for 80G and 12A Registration
- Preparation of Documents: Gather all thedocuments required for 80G and 12A registration.
- Filing the Application: Submit the application form (Form 10A for 12A and Form 10G for 80G) to the Income Tax Department.
- Verification: The Income Tax Officer may call for additional documents or inspect to verify the organization’s activities.
- Approval: Once satisfied, the department will issue the80G and 12A Registration certificates.
With Vedkee Associates, this process becomes seamless as our experts guide you through every step.
Tips to Ensure Successful Registration
- Double-check all thedocuments required for 80G and 12A registration to ensure accuracy.
- Seek professional assistance from Vedkee Associates to streamline the process and minimize errors.
- Maintain transparency in your organization’s operations and financials.
Obtaining 80G and 12A Registration is a vital step for any NGO or charitable trust aiming to expand its reach and impact. Vedkee Associates specializes in providing expert guidance and support to ensure a smooth registration process. By understanding the 80G and 12A registration fees and ensuring the submission of all required documents, you can secure these certifications effortlessly. Contact Vedkee Associates today to get started on your registration journey and unlock a world of opportunities for your organization and its donors.
80G and 12A are both provisions under the Income Tax Act that benefit non-profit organizations. The key difference is:
- 80G Registration allows donors to claim tax deductions on donations made to the organization, making it easier to encourage donations.
- 12A Registration provides tax exemptions to the non-profit organization itself, allowing it to be exempt from income tax on its income, as long as it is used for charitable or religious purposes.
Both registrations help strengthen the credibility of the organization and promote financial transparency.
To apply for 80G and 12A registrations, an NGO must:
- First, apply for 12A registration with the Income Tax Department, which grants it tax-exempt status.
- Once the NGO has 12A registration, it can then apply for 80G registration to enable donors to receive tax deductions. The application process involves submitting relevant documents, including the organization’s memorandum, by-laws, and financial statements, among others, to the Income Tax authorities.
The primary benefits of 80G and 12A registration for NGOs include:
- Tax Exemption: 12A registration provides income tax exemption on funds used for charitable purposes.
- Encouraging Donations: 80G registration allows donors to claim tax deductions, thus encouraging them to contribute more to the NGO.
- Credibility: Both registrations improve the organization’s credibility and transparency, which can attract more funding from individuals, foundations, and government agencies.