12A & 80G Registration
The term “12A registration” likely refers to a specific provision under the Income Tax Act of India. Under this provision, charitable and religious organizations can apply for registration under section 12A of the Income Tax Act, 1961, to avail themselves of various tax welfare.
When a company is registered under section 12A, it becomes eligible for exemptions on income derived from its charitable or religious activities. This means that the income earned by the company through donations, contributions, or any other charitable activities would be exempt from income tax. As a result
Incorporation or Establishment: The organization seeking registration should be legally established. It should have its own Memorandum of Association or Trust Deed), and it should be operational
Required Documents for 12A Registration
The organization needs to collect the necessary documents, which may include:
- Memorandum of Association and Articles of Association of the organization.
- Registration certificate of the organization, such as the Trust Deed or Society Registration Certificate, depending on the type of organization.
- PAN of the organization.
- Address proof of the organization, such as electricity bill, lease agreement, or property tax receipt.
- Proof of activities carried out by the organization, which shows that it is genuinely engaged in humanitarian charitable or religious work.
- Financial statements, including income and spending statements, balance sheet, and audit reports for the last three years.
- List of contributor and their addresses along with the donation amounts for the last three years.
- List of governing body members or trustees along with their contact feature and addresses.
- A statement declaring that the organization’s revenue will be used only for charitable or religious purpose and not for the benefit of any individual.
Any other certificate as specified by the Income Tax Department during the 12A Registration procedures.
The benefit of 12A registration is that the charitable or religious trust becomes eligible for tax exemption. Once registered under Section 12A, the trust’s income is exempted from taxation, provided it is applied for charitable purposes. This can result in substantial savings in terms of income tax liabilities.
Donations suitable :
Donors often prefer to donation to registered charitable organizations as donations made to such formation are eligible for tax deductions under Section 80G of the Income Tax Act. Having 12A registration makes it easier for the trust to obtain 80G certification, allowing donors to avail tax welfare for their contributions.
12A registration come up with legal recognition to the trust or institution. It increase the credibility and responsible of the organization, making it more attractive to donors, beneficiaries, and other shareholders.
Progression and Perpetuity:
Registered trusts enjoy perpetual existence, meaning the company can continue to operate even if there are changes in its trustees or management. This ensures the continuity of the trust’s activities of the charitable trust.
No Set termination:
Unlike 80G certification, which requires renewal every few years, 12A registration does not have date of expiry. Once registered, the trust can enjoy the tax benefits and indefinitely the subject to adhering to the conditions laid down by the tax authorities.
For foreign donors or organizations looking to contribute to Indian charitable causes, 12A registration is often a prerequisite for receiving foreign contributions under the Foreign Contribution. Foreign contribution regulation act ie. FCRA registration allows the trust to receive donations legally from foreign.
It is essential to note that tax laws and regulations are subject to change, so it’s crucial to verify the current benefits and requirements of 12A registration with a qualified tax professional or consult the latest information from the Indian Income Tax Department.
However, BusinessRights can provide some major information about what a 12A registration might refer to. In some countries, “12A registration” could be related to tax exemptions for charitable or non-profit organizations. The term may also refer to a specific registration process or category for such organizations to gain tax benefits and privileges.
The term “80G registration” likely refers to a provision in the Income Tax Act of India. Under this facilities, donations made to determined charitable organizations are eligible for tax deductions. These deductions are request to individuals or entities who make donations to record charitable organizations.
When an organization registered 80G registration, it means that it has been certified by the Income Tax authorities, and contributor who contribute to that organization can claim a conclusion from their taxable income for the quantity donated. This deduction is subject to certain limitation and circumstances as specified in the Income Tax Act.
It’s very important to note that tax laws and regulations may exchange over time, so I recommend checking with a qualified tax professional or the latest official sources for the most up-to-date details on 80G registration and its suggestion.
Documents for 80G Registration
The organization should have a valid enrolment certificate issued by the suitable power (e.g., Trust Deed, Society Registration Certificate, Section 8 Company Certificate).
Memorandum and Articles of Association:
If the organization is registered as a company, you will need to provide a copy of the Memorandum and Articles of Association.
A copy of the Permanent Account Number card of the organization.
Any document serving as proof of the organization’s address (e.g., electricity bill, water bill, etc.).
Audited monetary Statements:
The audited financial statements of the organization for the last three years.
This is the application form for 80G registration. It needs to be filled and accurately.
Details of Activities:
A comprehensive description of the activities carried out by the organization, along with proof of the impact and benefits to the public.
Board Members’ Details:
The names and addresses of all the board members or trustees of the organization.
Original 80G Certificate:
If you are applying for renewal or softening of an existing 80G registration, you will need to submit the original 80G certificate.
“80G” refers to a specific provision in the Income Tax Act of India. It allows donors to claim tax deductions for donations made to specified charitable institutions or funds.
Here are some good of making donations under section 80G of the Income Tax Act.
Donors who donate to eligible beneficent organizations or funds covered under section 80G can claim a removal from their taxable income. The amount eligible for deduction varies based on the type of organization and the circumstances specified under the section.
Encouragement for Philanthropy: The provision inspire individuals and businesses to donate to charitable causes as they can get monetary relief through tax subtraction. This, in turn, promotes philanthropy and support for various social causes.
The donations made under section 80G are generally directed towards charitable institutions engaged in social welfare activities, such as education, healthcare, calmness to the poor, etc. By offering tax welfare, the government aims to support these organizations and their efforts to better society.
Reduction in Tax Liability:
The subtraction allowed under section 80G helps reduce the donor’s taxable income. Consequently, the tax liability decreases, authorize individuals to retain a larger piece of their income.
Incentive for Corporate Social Responsibility:
For companies, contributing to permitted charitable institutions can fulfill their CSR responsibility and, at the same time, collect tax benefits for their donation under section 80G.
Why BusinessRights for 12A & 80G Registration
BusinessRights refer to the legal rights and privileges that a business entity possesses. These rights may include the ability to conduct trading activities, enter into contracts, own belonging, protect intellectual belonging, hire employees, and engage in various business-related functioning. Business$ights are essential for any enterprise to operate legally and effectively in a given jurisdiction. We will give you absolute clarity on the process of services. You can track your Status of services live , which brings clarity and reliability in our system can be obliging for an organization seeking 12A & 80G registration.