Easy Guide to #12A & 80G Registration for FY 21-22 & Beyond

12A and 80G Registration. Easy guide for FY 21-22 & Onwards

12A and 80G Registration are obtained from Income Tax Department to avail the benefit of tax exemption and availing deductions under Chapter VIA for donors. The registration is obtained by non profit organizations such as society or trust (excluding public and family trust) or Section 8 companies. Both 12A and 80G Registrations were earlier provided for lifetime but before 31st Mar, 2022 all existing NGOs had to renew their registrations and validity for the same will be for 5 years. Thus to conclude 12A and 80G Registrations will have to be renewed after 5 years.

Please note NGO must be registered on Darpan Portal of Niti Aayog before obtaining 12A and 80G Registration. Refer link >>  https://ngodarpan.gov.in/

New Procedure for Registration – Section 12AB with effect from 1st April, 2021 (For this purpose, CBDT has issued Notification No. 19/2021 dated 26th March 2021 which makes it mandatory for all the trusts/ societies/institutions registered under section 12A and 80G to obtain fresh registration)

Sec 12A Prescribes the conditions for availing the benefits u/s 11 and 12. Sec 12AB – Prescribes the procedure framework for registration with the income-tax authorities to avail the exemption u/s 11 and 12.(introduced wef AY 2022-2023) Form 10A – Prescribes the procedure framework for registration with the income-tax authorities to avail the exemption u/s 11 and 12.(introduced wef AY 2022-2023)

KEY FEATURE : One of the key feature of new registration process that benefits the taxpayer is that provisional registration will be provided for a period of three years without detailed enquiry by the prescribed income-tax authority even in cases where activities of the entity are yet to begin. 

 

AUDIT The accounts of the trust must be audited by a Chartered Accountant where the total income of the trust without giving the effect of Sec 11 & 12 exceeds the maximum amount which is not chargeable to income-tax and should be furnished on or before the specified date i.e. one month prior to the due date for filling return of income.

 

RETURN FILLING As per Sec 12A person in receipt of the income chargeable to income-tax shall furnish the return of income within the time allowed under section 139(4A) of the Act.

Documents required for filling Form 10A

self-certified copy of the instrument/document evidencing the creation, or establishment of the applicant

self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;

self-certified copy of existing order granting registration under section 12A or section 12AA or section 12AB, as the case may be;

where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up

Benefits of obtaining 12A and 80G Registration

• Income of Society or Trust or Section 8 companies become exempt.
• Donor get deduction from his/her taxable income of the amount of donation.
• Government funding are only provided to NGO who has obtained 12A & 80G registration.
• Corporate Donors will provide funding as a part of their CSR activities or otherwise only to NGO who has obtained 12A & 80G registration.
• For obtaining International funding, FCRA registration is to obtained which can be taken by NGO who has obtained 12A & 80G registration. For FCRA Registration refer >>  https://www.taxledgeradvisor.com/fcra-registration/

Documents required for obtaining 12A and 80G Registration

1. Self certified copy of Certificate of Registration obtained from Registrar of Companies in case of Section 8 Company or Registrar of firms and Societies in case of Society or Registrar of public trusts in case of Trust.
2. Self certified copy of Memorandum of Association ( MOA) & Rules & regulations in case of Society and Section 8 Companies or Trust Deed in case of trust
3. Self certified copy of documents evidencing adoption of the objects.
4. Address proof for Registered Address (Rent Agreement/ NOC) along with Electricity bill/water bill
5. Copy of PAN Card
6. Self certified copy of Annual Accounts of the Trust/Society/Company of prior 3 years if has been in existence for more than 3 years and if less than 3 years than such Annual Accounts for number of years of existence.
7. Self certified copy of existing 12A and 80G Registration, if any.
8. Self certified copy of order of rejection of grant of 12A and 80G Registration, if any.

Process for obtaining 12A and 80G Registration

• Logon on to Income tax portal. Refer link  https://www.incometax.gov.in/iec/foportal
• Go to E-file tab >> Income Tax Forms >> File Income Tax Forms
• Select Form 10A along with the documents mentioned above
• Form 10A has to be mandatorily verified by DSC of authorized person
• 12A Certificate will be granted by Income Tax Commissioner in Form 10AC which will have a Unique Registration Number for 5 years.
• Income Tax Commissioner may reject the application after giving opportunity of being heard. Rejection Order is also passed in form 10AC
• Repeat the steps to obtain 80G registration by filing from 10G. 80G can be obtained only after obtaining 12A registration.

Process for revalidation of 12A and 80G Registration

• Logon on to Income tax portal. Refer link  https://www.incometax.gov.in/iec/foportal
• Go to E-file tab >> Income Tax Forms >> File Income Tax Forms
• Select Form 10A for renewal along with the documents mentioned above
• Form 10AB has to be mandatorily verified by DSC of authorized person
• 12A Certificate will be granted by Income Tax Commissioner in Form 10AC which will have a Unique Registration Number for 5 years.
• Income Tax Commissioner may reject the application after giving opportunity of being heard. Rejection Order is also passed in form 10AD
• Repeat the steps to obtain 80G registration by filing form 10G. 80G can be obtained only after obtaining 12A registration.

Documents required for revalidation of 12A and 80G Registration

1. Self certified copy of Certificate of Registration obtained from Registrar of Companies in case of Section 8 Company or Registrar of firms and Societies in case of Society or Registrar of public trusts in case of Trust.
2. Self certified copy of Memorandum of Association ( MOA) & Rules & regulations in case of Society and Section 8 Companies or Trust Deed in case of trust
3. Self certified copy of documents evidencing adoption of the objects.
4. Address proof for Registered Address (Rent Agreement/ NOC) along with Electricity bill/water bill
5. Copy of PAN Card
6. Self certified copy of Annual Accounts of the Trust/Society/Company of prior 3 years if has been in existence for more than 3 years and if less than 3 years than such Annual Accounts for number of years of existence.
7. Self certified copy of existing 12A and 80G Registration.
8. Self certified copy of order of rejection of grant of 12A and 80G Registration.