80G And 12A Registrations And Process

80G and 12A registrations are important legal certifications for non-profit organisations in India. These certifications provide various benefits such as tax exemption for the donors, access to government funding, and credibility among donors and supporters. In this article, we will discuss the process of 80G and 12A registration in India and the services offered by third-party companies for the same.

What is 80G and 12A registration?

80G and 12A registrationsare certifications provided by the Income Tax Department of India to non-profit organisations. The 80G certification allows donors to claim a tax deduction on their donations to the organisation. On the other hand, the 12A certification provides exemption to the organisation from paying income tax on its income. Both certifications are important for non-profit organisations as they help in fundraising and credibility.

Process of 80G and 12A registration

The process of 80G and 12A registration in India involves the following steps:

step 1: Incorporation of the organisation
The organisation needs to be registered under the appropriate legal framework such as the Societies Registration Act, 1860, or the Companies Act, 2013.

Step 2: Applying for PAN and TAN
The organisation needs to apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.

Step 3: Drafting of MOA and By-Laws
The organisation needs to draft the Memorandum of Association (MOA) and By-Laws in accordance with the requirements of the legal framework under which it is registered.

Step 4: Filing of Form 10A
The organisation needs to file Form 10A with the Income Tax Department to apply for 12A certification. This form should be filed within one year from the date of incorporation.

Step 5: Filing of Form 80G
Once the organisation has received the 12A certification, it can apply for 80G certification by filing Form 10G with the Income Tax Department.

Step 6: Follow-up with the Income Tax Department
The organisation needs to follow up with the Income Tax Department for the processing of its application for 80G and 12A certifications.

Services Offered By SV Associates For 80G And 12A Registration In India

SV Associates
offer consultation and advisory services to non-profit organisations regarding the 80G and 12A registration process. We help in the drafting of MOA and By-Laws, and provide guidance on the legal requirements and compliances. Alongside, we provide the following services:

Preparation and Filing of Forms
Our team prepares and files the required forms with the Income Tax Department for 80G and 12A registration. We ensure that the forms are prepared in accordance with the legal requirements and are filed within the specified time limit.

Follow-up with the Income Tax Department
We follow up with the Income Tax Department for the processing of the application for 80G and 12A certifications. They ensure that the application is processed in a timely manner and any issues or queries raised by the Income Tax Department are addressed promptly.

Compliance Management
SV Associates provide compliance management services to non-profit organisations after obtaining the 80G and 12A certifications. We ensure that the organisation complies with all the legal requirements and compliances related to these certifications.

Other Services
Our experts also offer other services such as accounting and bookkeeping, financial management, fundraising, and donor management to non-profit organisations. These services help organisations in managing their finances, generating more funds, and keeping track of their donors.

Why Choose SV Associates

here are various benefits of choosing a trustable company like ours for 80G and 12A registration in India. Some of these benefits are:

Expertise and Experience
The team at SV Associates have expertise and experience in the registration process for 80G and 12A certifications. They have a deep understanding of the legal requirements and compliances, and can guide non-profit organisations in the right direction.

Time and Cost Savings
By outsourcing the registration process to us, non-profit organisations can save time and cost. The registration process can be time-consuming and complex, and requires a lot of effort and resources. Our team of experts can handle the process efficiently and effectively, thus saving time and cost.

Compliance Management
At SV Associates, we not only handle the registration process but also provide compliance management services to non-profit organisations. This ensures that the organisation remains compliant with all the legal requirements and compliances related to 80G and 12A certifications.

Fundraising and Financial Management
also provide fundraising and financial management services to non-profit organisations. This helps in generating more funds and managing the finances of the organisation effectively.

80G and 12A registrationsare important certifications for non-profit organisations in India. They provide various benefits such as tax exemption for donors, access to government funding, and credibility among donors and supporters. The registration process for these certifications can be complex and time-consuming, and requires a deep understanding of the legal requirements and compliances. SV Associates provide various services such as consultation and advisory services, preparation and filing of forms, follow-up with the Income Tax Department, compliance management, and other services to non-profit organisations for 80G and 12A registration. Engaging us for 80G and 12A registration can provide various benefits such as expertise and experience, time and cost savings, compliance management, and fundraising and financial management services.

Importance Of 80G And 12A Registration In India

80G and 12A registrations are important certifications for non-profit organisations in India. These certifications provide various benefits to non-profit organisations, such as tax exemption for donors, access to government funding, and credibility among donors and supporters. Let us look at the importance of 80G and 12A registrations in detail:

Tax Exemption for Donors:are important certifications for non-profit organisations in India. They provide various benefits such as tax exemption for donors, access to government funding, and credibility among donors and supporters. The registration process for these certifications can be complex and time-consuming, and requires a deep understanding of the legal requirements and compliances. SV Associates provide various services such as consultation and advisory services, preparation and filing of forms, follow-up with the Income Tax Department, compliance management, and other services to non-profit organisations for 80G and 12A registration. Engaging us for 80G and 12A registration can provide various benefits such as expertise and experience, time and cost savings, compliance management, and fundraising and financial management services.

Tax Exemption for Donors:
Donors who donate to a non-profit organisation with an 80G certification can claim tax exemption on their donations under section 80G of the Income Tax Act. This helps in encouraging more donations to non-profit organisations and also helps in building trust among donors.

Access to Government Funding:
Non-profit organisations with 80G and 12A certifications are eligible to receive government funding. The government provides various grants and subsidies to non-profit organisations to support their social welfare activities. Having these certifications increases the chances of receiving government funding and helps in expanding the reach and impact of the organisation's social welfare activities.

Credibility Among Donors and Supporters:
80G and 12A certifications are proof that a non-profit organisation is registered with the Income Tax Department and is compliant with all the legal requirements and compliances. This helps in building credibility and trust among donors and supporters, and increases the chances of receiving more donations and support for the organisation's social welfare activities.

Legitimacy:
80G and 12A certifications provide legitimacy to non-profit organisations. These certifications indicate that the organisation is a genuine and legitimate entity, and not a fraudulent or fake organisation. This helps in building trust among donors and supporters, and also helps in attracting volunteers and employees to the organisation.

Reduced Tax Liability:
Non-profit organisations with 12A certifications are exempted from paying income tax on their earnings. This helps in reducing the tax liability of the organisation and helps in utilising the funds for social welfare activities.

80G and 12A registrations are important certifications for non-profit organisations in India. These certifications provide various benefits such as tax exemption for donors, access to government funding, credibility among donors and supporters, legitimacy, and reduced tax liability. Non-profit organisations must obtain these certifications to enhance their credibility, increase their chances of receiving donations and support, and expand the reach and impact of their social welfare activities.

5 Common Mistakes To Avoid During 80G And 12A Registration In India

There are several common mistakes that non-profit organisations can make during the 80G and 12A registration process in India, which can result in delays or even rejection of the application. Here are some of the most common mistakes to avoid:

Incomplete or inaccurate documents: One of the most common mistakes made during the registration process is submitting incomplete or inaccurate documents. This can include missing signatures, incorrect information, or incomplete supporting documents. It is important to ensure that all documents are complete, accurate, and in the required format before submitting them.

Not providing adequate information about the organisation's activities: Another common mistake is not providing adequate information about the organisation's activities. Non-profit organisations should provide detailed information about their activities and how they are benefiting the society. This information is crucial to demonstrate that the organisation is working towards a charitable purpose and is eligible for 80G and 12A registration.

Not adhering to the necessary compliance and legal requirements:Non-profit organisations must comply with certain legal and compliance requirements to be eligible for 80G and 12A registration. Some common compliance requirements include maintaining proper books of accounts, filing annual returns with the Income Tax Department, and adhering to the provisions of the Foreign Contribution Regulation Act (FCRA). Failure to comply with these requirements can result in rejection of the application.

Not seeking professional guidance: Many non-profit organisations attempt to complete the registration process on their own, without seeking professional guidance. This can result in mistakes and omissions that can delay or even reject the application. Seeking professional guidance from a third-party service provider can help non-profit organisations navigate the complex registration process and ensure that all the necessary requirements are met.

By avoiding these common mistakes and seeking professional guidance, non-profit organisations can increase their chances of successfully obtaining 80G and 12A registration in India.

FAQ's

What is the difference between 80G and 12A registration?

80G registration is a certificate issued to non-profit organisations that allows their donors to claim tax exemption on their donations under Section 80G of the Income Tax Act. On the other hand, 12A registration is a certificate issued to non-profit organisations that exempts them from paying income tax on their earnings.

Is it necessary to have 12A registration before applying for 80G registration?

Yes, it is necessary for non-profit organisations to have 12A registration before applying for 80G registration. 80G registration cannot be obtained without first obtaining 12A registration.

What is the validity of 80G and 12A registration?

Both 80G and 12A registrations are valid for a period of five years. After five years, the non-profit organisation must apply for renewal of these registrations.

Can foreign donors claim tax exemption under 80G?

No, foreign donors cannot claim tax exemption under 80G. Tax exemption under 80G is applicable only to Indian donors.

What is the process for obtaining 80G and 12A registrations?

The process for obtaining 80G and 12A registrations involves submitting an application to the Income Tax Department along with the required documents such as the organisation's memorandum and articles of association, details of its activities and projects, and audited financial statements. The Income Tax Department will then verify the application and documents submitted and issue the registrations if all requirements are met.

Can a non-profit organisation apply for 80G and 12A registrations simultaneously?

Yes, a non-profit organisation can apply for 80G and 12A registrations simultaneously by submitting a single application to the Income Tax Department.

Is it mandatory for a non-profit organisation to obtain 80G and 12A registrations?

No, it is not mandatory for a non-profit organisation to obtain 80G and 12A registrations. However, obtaining these registrations provides various benefits to non-profit organisations such as tax exemption for donors, access to government funding, and credibility among donors and supporters.

Is it possible to surrender 80G and 12A registrations before their expiry?

Yes, it is possible for non-profit organisations to surrender their 80G and 12A registrations before their expiry. The non-profit organisation can apply for surrender of the registrations to the Income Tax Department along with the required documents such as the registration certificates and a letter stating the reason for surrendering the registrations.

Can a non-profit organisation apply for 80G registration after receiving 12A registration?

Yes, a non-profit organisation can apply for 80G registration after receiving 12A registration. However, the organisation must ensure that it meets all the eligibility criteria for 80G registration and must submit the required documents to the Income Tax Department for verification.

Can a non-profit organisation avail tax exemption on donations made to it without 80G registration?

No, a non-profit organisation cannot avail tax exemption on donations made to it without 80G registration. Donors can claim tax exemption on their donations only if the non-profit organisation has 80G registration.

Can a non-profit organisation renew its 80G and 12A registrations after their expiry?

Yes, a non-profit organisation can renew its 80G and 12A registrations after their expiry. The non-profit organisation must apply for renewal of the registrations to the Income Tax Department along with the required documents such as audited financial statements, details of activities and projects, and a renewal application form.