80G/12A Certificate

The Income Tax Act, which was enacted in 1961, is the statute that governs everything relating to taxation. This comprises income tax levy, collection, administration, and recovery. The act's primary goal is to consolidate and alter the country's taxes rules. 

The Income Tax Act is divided into several sections, each of which deals with a particular component of the country's taxation. Every year in February, the Indian government releases its fiscal budget. The budget proposes a number of changes to the Income Tax Act.

Section 80G of the Income Tax Act

Giving to charity is a good endeavor, donating your earnings to charitable organizations brings you more benefits than just good karma. Under the Income Tax Act of 1961, contributions to selected charitable organizations mentioned in Section 80G of the Income Tax Act are eligible for tax deduction. The Income Tax Act's Section 80G registration largely deals with charitable donations, whilst Section 80G registration deals with the limitations on tax exemption on gifts made under Section 80G.

NGOs can benefit from registration under section 80G of the Income Tax Act. If the NGO possesses an 80G certificate, the donor receives a financial benefit in his or her taxable income. If an NGO is registered under section 80G, a person or organization making a donation to the NGO will be eligible to deduct 50% of his or her taxable income. NGO can attract more contributors by obtaining an 80G Certificate.

If an NGO is registered under section 80G, a person or organization who makes a donation to the NGO will be allowed to deduct 50% of his or her taxable income.

Section 12AA of the Income Tax Act

The purpose of registering for 12AA is to receive an income tax exemption. Once this registration is completed, the organization's entire income is exempt from taxation. Form 10A is used to complete the 12AA registration application. The Commissioner of the Income Tax Department, who has jurisdiction over the institution, will process your application for registration under section 12AA. All NGOs are eligible for income tax exemption, but only those that are aware of it and can take advantage of it are eligible. As a result, all NGOs, Trusts, and other Not-for-Profit organizations must be aware of Section 12AA of the Income Tax Act in order to enjoy the benefit of the exemption limit.

Section 12AB of the Income Tax Act

Previously, an NGO's registration to have its income exempted from tax was done under Section 12AA. After Section 12A Registration, all income is exempt from taxation. If a non-profit organization does not obtain 12A registration, income tax is due on any surplus throughout the year.

According to the revised compliance with regard to sections 12A and 12AA of the IT Act, all NGOs that now hold exemption u/s 12AA of the IT Act must reapply by March 31, 2022. (As extended) and will be required to apply for a new registration under Section 12AB.

• The fund that you want to use for charitable or religious purposes is considered an income application. In layman's terms, an income application is an expense incurred by a trust for charitable or religious purposes.
• The total amount of money received will be tax-free.
• A charitable or religious organization or person that is registered under this section can benefit from an accumulation of income that cannot exceed 15% for charitable or religious purposes.
• Because accumulation of revenue is considered an application of income under Section 11(2), it is not included in total income.
• NGOs are entitled to several permits from the government and other agencies. There are organisations that help NGOs with funding, and these organisations prefer to distribute funds to 12AA-registered organisations.
• Section 12AA registration is a one-time procedure. Once you've completed the registration, it'll be valid until you cancel it. Because 12AA registration does not need to be renewed, it might be regarded a benefit that NGOs can take use of.

The applicant must submit the following documents:

• A self-certified copy of the instrument that was used in the process of establishing trust or establishing the institution must be submitted.
• The foundation or trust could have been established in any way other than through the traditional technique of writing and registering an instrument. In such circumstances, the Income Tax Department should receive a self-attested copy of the document establishing the founding of the trust or the institution's foundation.
• Provide a copy of the registration that has been self-attested and filed with the appropriate organization. The Registrar of Companies, the Registrar of Firms and Societies, or the Registrar of Public Trusts may be the appropriate body.
• A self-certified copy of the document that acts as evidence at the time of adoption or when the entity's goal is changed must be submitted.
• The trust/financial institution's report for the three most recent financial years is required.
• Make a list of the actions that each entity performs.
• There are a few circumstances under which the Income Tax Department may be forced to rescind a registration obtained under this section. The assessee, however, can file for the subsequent application once the problem has been remedied. The applicant must present a self-certified copy of the existing order issuing registration in this situation.
• In the event that the assessee's application is denied, he must include a self-certified copy of the order of denial with his application.

• Start with the Registration of Trust/NGO/Section 8 Company on Income Tax Portal and create the password.
• After creating Login ID and Password, Login on the Income tax Portal for filing the form 10A.
• Select Form 10A from the menu and fill out the relevant information of the Trust/NGO/Section 8 Company.
• Submit the Form 10A after entering the OTP sent on Aadhar linked mobile number.     
• Download the Acknowledgement for the tracking purpose.

Issuance of 80G/12A Certificate Of Registration

The department will issue the Certificate of Registration under section 80G/12A within the government timeline. The certificate issued will the provisional certificate which will be valid for three years. After three years of receiving the provisional certificate, the applicant will have to reapply for Original Certificate in which the applicant will have to make an application for 80G/12A.

Corpseed being a one-stop solution service facilitate and ensures hassle-free registration for 80G/12A. We at Corpseed facilitate end-to-end solutions for all the Indian Regulatory Compliance. Corpseed will provide the timely compliance and timely delivery of the Certificate of 80G/12A.

• Consultation regarding the filing of applications and eligible deductions
• Documents Collection and preparation of Financial Statements
• Application Filing
• Coordination with the department authorities 
• Timely filing of the application
• Cost-Effective Services