80G & 12A

12A is a registration done by NGO to get an organization income exempted from Tax. All income shall not be taxable after 12A registration. If NGO does not get 12A Registration, income tax is payable on surplus during the year.

80G Registration under Section 80G of Income Tax Act provides benefits to the donor of an NGO. The donor gets financial benefits in his taxable amount of their income.

Exemption certificate under Section 12A and 80G can be applied immediately after the registration of NGO. The application for 12A and 80G certificate can be filed together or can file separately as well. The application under Section 12A needs to be filed the application under Section 80G. The applications shall be a file with the commissioner of Income Tax having jurisdiction over the institution. It is a one-time registration process. Prior to applying for an exemption certificate under section 12A, the NGO shall get it’s NGO registered under the Income Tax.Once the application made by the NGO in the specified format to the Commissioner of Income Tax, the commissioner shall review the same. On review of the application, the commissioner may ask for additional information or document to submit. On satisfaction of all information or application, the Commissioner shall pass an order in writing registering the Trust/Institution under Section 12A of Income Tax Act. On non-satisfaction of an application, the commissioner may reject the application of an NGO. The registration process may take time up to 3 to 4 months. The Registration done once is valid for a lifetime.

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