Non-government organisations are those entities that are working for charitable purposes in India. There are three types of such organisations, which includes societies, trusts and section 8 company. There are many advantages and benefits of working as an NGO in India. Two of such advantages are tax exemption and tax deduction under the Income Tax Act. Most of the NGOs in India are running on the amount of donations. Donation is helpful for the NGO as well as the donor. Donors can show the donated amount receipt and get a tax deduction on that amount. On the other hand, NGOs can get tax exemption on the donation amount.
To get the above-mentioned advantages, it is a must to have 80g and 12a registration with the Income Tax Department. The registration process for both of them is an online process. Although the process is online, there are a lot of formalities that one needs to do. One of the most important things while completing the registration process is documentation. One must have all the documents required for 80g and 12a registration before starting the registration process. The current blog will discuss all the documents required for 80g and 12a registration in India.
Is it Mandatory to get 80g and 12a Registration?
To get the various benefits under section 80g and section 12a of the Income Tax Act, it is mandatory for all NGOs to get 80g and 12a registration. Without getting this registration, no one can get a tax deduction or tax exemption. From the perspective of both the NGOs and the donor, it is important to get such registration. All the registered NGOs have to pay the tax at the normal rates if they do not have 12a registration.
Similarly, a donor will not get the tax deduction on the donated amount if the NGO does not have registration under section 80g of the Income Tax Act. Hence for the benefit of the NGO as well as the donor, it is mandatory to get 80g and 12a registration. The very first step to start this registration is to collect all the documents required for 80g and 12a registration in India.
Documents Required for 80g and 12a Registration in India
All the NGOs working with the charitable purpose need to obtain registration under section 80g and 12a of the Income Tax Act. There are three types of NGOs in India; hence will discuss their documentation accordingly. Given below is the list of all the documents required for 80g and 12a registration separately for all three types of NGOs:
Documents Regarding Societies
Given below is the list of documents required for 80g and 12a registration as a society in India:
- KYC documents of all the members of the society. KYC documents include aadhaar card and PAN card of all the members of the society
- Collect one passport-size photograph of all the members of the society
- Business address proof of the registered society
- Incorporation certificate of the society
- Details of the author, president and secretary of the society
- Details of assets and liabilities of the society
- Income details of the society
- Details of the income received by the society in the last three preceding years
- Copy of bylaws of the society
- Memorandum of Association of the Society
- PAN Card of the society
- List of the donors of the society
- Copy of the Form 10A
- Book of accounts of the society
Documents Regarding Trusts
Given below is the list of documents required for 80g and 12a registration as a trust in India:
- KYC documents of all the trustees, beneficiaries and authors of the trust. KYC documents include an Aadhar card and PAN card for all the trustees, beneficiaries and authors of the trust.
- Collect one passport-size photograph of all the trustees, beneficiaries and authors of the trust.
- Business address proof of the registered trust
- Incorporation certificate of the registered trust
- Details of assets and liabilities of the registered trust
- Income details of the trust
- Details of the income received by the trust in the last three preceding years
- PAN Card of the trust
- Copy of the Form 10A
- Book of accounts of the trust
- Bank account details of all the trustees, beneficiaries and authors of the trust.
- A Trust Deed of the trust is also required
Documents Regarding Section 8 Company
Given below is the list of documents required for 80g and 12a registration as a Section 8 company in India:
- KYC documents of all the directors of the company registered under the Companies Act. KYC documents include aadhaar card and PAN card of all the directors of the company
- Collect one passport-size photograph of all the directors of the company
- Business address proof of the company
- The incorporation certificate of the company registered under the Companies Act
- Details of assets and liabilities of the Section 8 company, which is registered under the Companies Act
- Income details of the company
- Details of the income received by the company in the last three preceding years
- Memorandum of Association, also known as MOA and Article of Association also known as AOA of the Section 8 Company is required
- PAN Card of the company
- List of the donors of the company
- Copy of the Form 10A
- Book of accounts of the company
Conclusion
Obtaining 80g and 12a registration is essential for non-government organisations (NGOs) in India to enjoy the tax benefits provided under the Income Tax Act. These registrations allow NGOs to receive tax-exempt donations and donors to claim tax deductions on their contributions. The registration process, although online, involves several formalities, including the submission of all the documents required for 80g and 12a registration. The documents vary depending on the type of NGO.
Having 80g and 12a registration is crucial for NGOs, as it not only helps them in their charitable work by attracting donations but also benefits donors by offering tax deductions. To initiate the registration process, organisations should ensure they gather all the necessary documents relevant to their specific NGO type. Compliance with these requirements is a key step in securing these tax-related advantages for both NGOs and their supporters.
