Bangalore is renowned as India's Silicon Valley. It is home to a multitude of IT and technology firms, as well as a well-developed infrastructure and qualified workforce. Bangalore also boasts a thriving start-up scene.
For NGOs in Bengaluru, Sections 12A and 80G registrations are of significant benefit. Under Section 12A of the Income Tax Act, 1961, NGOs are granted a one-time tax exemption on their surplus income, effectively relieving them from tax obligations and an 80G registration enables NGOs to issue tax-exemption certificates to donors, motivating them to contribute funds. Donors who contribute to NGOs with an 80G certificate can enjoy a 50% deduction from their taxable income. As a result, 12A and 80G registration in Bengaluru is beneficial for entities seeking such benefits.
Benefits of 12A and 80G Registrations in Bengaluru
The benefits of 12A and 80G registration in Bengaluru are as follows:
- Eligibility for Government Funding
- Grants and Aid
- Tax exemptions
- Enhances Credibility
Eligibility for 12A and 80G Registration in Bengaluru
To be eligible for 12A and 80G Registrations in Bengaluru, NGOs must meet the following criteria:
1. Utilisation of Assets for 12A and 80G registration in Bengaluru:
NGO assets should be utilised exclusively for charitable purposes, ensuring that they contribute to the overall welfare and benefit of the society.
2. Legal Entity:
NGOs operating as Public Charitable Trust or under section 25 of the Companies Act, 1956 and exclusively working for public welfare are eligible for 12A registration.
3. Proper Financial Records:
NGOs are required to maintain accurate Books of Account, ensuring transparent recording of all expenditures and receipts related to their charitable activities.
4. Compliance with Tax Regulations:
The organisation should fulfil the necessary requirements for tax exemption as per the provisions of section 80G.
5. Permissible Donations:
Donations made to the NGO should fall within the categories specified under section 80G, allowing the donors to claim tax exemptions on their contributions.
Documents Required for 12A and 80G Registrations in Bengaluru
Documents Required for for 12A registration in Bengaluru are:
- Trust Deed
- Registration Certificate and Memorandum of Association (MOA)
- Form 10A
- Three-Year Bank Account Statement
- PAN of the Organisation
Documents Required for 80G Registration in Bengaluru:
- Memorandum of Association (MoA) and Registration Certificate (for Section 8 companies and Societies) or Trust Deed (for Trusts)
- No objection certificate from the property owner where the registered office of the institution is located
- Form 10G
- Copy of the Permanent Account Number (PAN) of the NGO
- Copies of Utility Bills like electricity bill or water bill or house tax receipt for verification of the registered office address
- List of donors along with their addresses and PAN
- Documents related to Income Tax Returns and the Book of Accounts for the past three years
- List of welfare activities being carried out and progress report of the last three years
- Detailed list of the Board of Trustees or governing body members
- Original Registration Certificate, Memorandum of Association (MoA) or Trust Deed (depending on the type of organisation)
Procedure for 12A and 80G Registration in Bengaluru
The process for obtaining an 12A and 80G registrations in Bengaluru involves the following steps:
1. Application Submission:
The institution seeking 12A and 80G registration must submit the application to the Commissioner of Income Tax (Exemption) in the jurisdiction where the organisation is located.
2. Form and Document Submission:
Along with the application form, the required documents for registration must be submitted, which usually include the organisations legal registration documents, its financial statements and other relevant supporting documents needed.
3. On-site Inspection:
After the receipt of said application, an arrangement for on-site inspection of the premises of the applying institution is conducted by the IT department so as to verify the organisation's operations and ensuring compliance with relevant laws.
4. Additional Document Requests:
During the inspection, the Income Tax officials may request additional documents or evidence to further validate the institution's eligibility for registration. These additional documents must be promptly provided by the institution.
5. Verification and Scrutiny:
The submitted documents, along with the findings from the on-site inspection, undergo thorough verification and scrutiny by the Income Tax department. This ensures that all necessary criteria for 12A and 80G registration are met.
6. Granting of 80G Certificate:
If the institution's documents and premises are found to be in compliance with the regulations, the Commissioner awards the 80 G certificate to the institution.
Why Choose StartupFino for 12A and 80G Registration in Bengaluru?
StartupFino is a company that specialises in offering complete services for 12A and 80G registration in Bengaluru. We can help you with everything from providing advice in the initial phase to ensuring that you meet all the necessary requirements and keeping your organisation in good legal standing in Bengaluru.