80G and 12A registrations are essential for non-governmental organizations (NGOs), trusts, and charitable institutions in India. These registrations, issued under the Income Tax Act, 1961, provide tax exemptions and benefits to organizations engaged in social, educational, religious, or charitable activities. They help NGOs attract donors by offering tax deductions on donations while ensuring financial transparency and compliance with tax laws.

What is 12A Registration?

12A registration allows NGOs, charitable trusts, and societies to be exempt from paying income tax on their surplus funds. Without 12A registration, an organization’s income is subject to taxation like any other business. This certification is valid for a lifetime unless canceled by authorities.

What is 80G Registration?

80G registration enables donors to claim tax deductions on their donations to a registered NGO or charitable organization. Donations to an 80G-registered entity qualify for deductions of 50% or 100% under Section 80G of the Income Tax Act, depending on the nature of the organization. This helps NGOs raise more funds as donors benefit from tax savings.

Benefits of 80G & 12A Registration

1. Tax Exemption for NGOs: NGOs with 12A registration do not have to pay income tax on their earnings.

2. Increased Donations: 80G registration encourages more donations, as donors can claim tax deductions.

3. Government & Corporate Funding: Many government agencies and CSR initiatives prefer 80G & 12A-registered NGOs for funding.

4. Financial Transparency & Credibility: Registered NGOs gain trust and credibility, ensuring compliance with legal and tax regulations.

5. Lifetime Validity: 12A registration is valid indefinitely, while 80G registration may need periodic renewal as per new regulations.

Process of 80G & 12A Registration

1. Apply through Form 10A (for 12A) and Form 10G (for 80G) to the Income Tax Department.

2. Submit necessary documents like PAN, trust deed, financial statements, and activities report.

3. Verification & Inspection by income tax authorities.

4. Approval & Certificate Issuance, enabling tax benefits and exemptions.

80G and 12A registrations play a crucial role in empowering NGOs by ensuring tax benefits, increased funding, and greater transparency, helping them drive meaningful social impact.