Procedure for registration under section 80G, 12A and 12AA.

The Procedure for 80G/ 12A registration of NGO/ Charitable Trust/ Institution under section 12A, section 12AA and Section 80G which will facilitate NGO/ Charitable Trust/ Institution to avail income tax exemption benefits.

A non-governmental organization (NGO)that is neither a part of a government nor a conventional for-profit business. Usually set up by ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private persons. NGOs are highly diverse groups of organizations engaged in a wide range of activities, and take different forms in different parts of the world. Some may have charitable status, while others may be registered for tax exemption based on recognition of social purposes. Others may be fronts for political, religious or other interest groups.

In India, the various privileges are available to NGO/Charitable Trust’s in context of tax exemption. As per section 11 of income tax act, 1961 the NGO’s got various tax exemption benefits with respect to its income/donation, like:

1. 15% of income/donation is blindly exempt whether or not the above income applied for charitable purpose;
2. Voluntary contributions/donation made with a specific direction that they shall form part of the corpus of the trust is wholly exempt;
3. Donor of NGO will get deduction with respect to the donation made to such NGO;
4. and there is many mores.

In order to avail such benefits, the NGO/ charitable trust has to register themselves with income tax under section 12A , Section 12AA  & Section 80G of income tax act, 1961.

Now,  the question is how to register ??

So the answer to this how is as follows :-

First step Apply for PAN card, This will the birth of Trust in the eyes of Income Tax Department.

Second step Compiled the given below documents for applying registration u/s 12A & 80G (both application can be apply together or separately also) :-

1.Dully filled in Form – 10A for registration u/s 12A registration;

2.Dully filled in Form – 10G for registration u/s 80G registration;

3.Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head);

4.NOC from Landlord (where registered office is situated, if rented);

5.Copy of PAN card of NGO;

6.Electricity Bill / House tax Receipt /Water Bill (photocopy);

7.Short note on the activities of the trust and evidence of welfare activities carried out & Progress Report since inception or last 3 years;

8.Books of Accounts, Balance Sheet & ITR (if any), since inception or last 3years;

9.List of donors along with their address and PAN (If Any);

10.List of governing body/board of trustee’s members with their contact details along with copy of PAN;

11.Original RC and MOA / Trust Deed for verification (The same will be return to you after verification);

12.Affidavit / undertaking by NGO Head.

Third Step on compiling the above documents with covering letter, the responsible person shall submit the documents before Commissioner of Income Tax within which NGO jurisdiction lies.

Fourth Step NGO will receive notice for clarifications from Income Tax Department in 2-3 months after applying.

Fifth Step Reply of notice will be submitted by the responsible person of NGO along with all relevant desired documents to the Income Tax Departments.

Last Step Exemption Certificates will be issued.