Provisional 12A and 80G

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Overview

Trust, Society and Section 8 Company can seek registration Under Section 12A of Income Tax Act to claim exemption under Income Tax Act’ 1961, if certain conditions are satisfied. Section 12A deals with registration of trust and Section 12AA deals with online procedure for registration of trust. 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.
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Documents Required

  • Trust Deed in case of a Trust
  • MoA in case of Sec 8 Company
  • AoA in case of Sec 8 Company
  • Certificate of Incorporation in case of Section 8 Company
  • PAN Card of Trust or NGO
  • Email id and Phone no of Directors and Members
  • Digital Signature of any one Director

Available packages

Simple & transparent pricing

Provisional 12A and 80G

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₹ 4,999

  • Application of 12A and 80G
  • Issuance of 12A and 80G
  • Preparation of required documents for Application of 12A and 80G

Prices are excluding GST


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FAQ's on Provisional 12A and 80G

80G Certificate is issued to a non-profit organization or non-governmental organizations (NGO), a charitable trust or a Section 8 Company by the Income Tax Department. The objective behind the 80G certificate is to encourage more and more donors to donate funds to such organizations. The benefit that the donor avails by donating to such an NGO is that he gets tax exemption on 50% of his donation as the donor is allowed to deduct their donations from their Gross Total Income. To avail the tax exemption, the donor needs to attach the stamped receipt against the donation that is issued by the NGO – the receipt needs to include the name, date, and PAN of the organization.
By virtue of 12A registration, Trusts and NGOs and other Section 8 companies enjoy exemption from paying income tax. NGOs are basically organizations that are meant for charitable and non-profit activities. However, they do have income and would be required to pay tax as per normal rates if not registered under section 12A of the Income Tax Act. The Section 12A of the IT Act, 1962 does not differentiate between charitable and religious Trusts. Hence 12A registration is applicable to both the kinds of organizations.
The following are the benefits of 12A registration: Government schemes and Grants Tax Exemption Proof of Existence Applicable to NGO societies
The following benefits are available to an entity that is claiming this form of exemption: Increase in Reputation Government Funding Donors can save Tax More Donors Can apply for CSR Registration
80G Registration comes under section 80G of the Income Tax Act and provides benefit to the donor of an NGO whereas section 12A Registration will assist an NGO to get an organisation income exempted from tax.
Finance Act 2017 amended section 80G to provide that no deduction shall be allowed under section 80G in respect of donation of any sum exceeding Rs 2000 unless it is paid by any other mode.
Not all donations made by an individual qualify for deductions under Section 80G. Donations made to foreign trusts and political parties are not covered under the ambit of this section and individuals cannot claim tax deductions for such donations.
No, a trust/NGO has to apply for final 12A and 80G within 6 months of commencement of activities or before 6 months of expiration of 12A and 80G whichever is earlier.
No a Trust/NGO has to take Provisional Registration and then apply for final registration.
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