12A Registration process:-
When NGO organization get registered with Income Tax department, to claim tax exemption for their income, it gets the 12A certification
From the Date of establishment of an NGO, society or nonprofit company, it should apply for registration with Income tax department to get 12A certificate. If delayed in applying for registration then the nonprofit ngo organization should submit Audit Reports for the past three years or as may be available.
To get registered with Income tax department, Nonprofit NGO has to fill a form name FORM 10A and it have to produce to the Commissioner of Income Tax, Income Tax Department office where your NGO organization is location. If your NGO established in metropolitan cities like Delhi, Calcutta, Mumbai and Chennai, then you have to produce the FORM 10A to the Director of Income Tax (Exemption), Income tax department office. Before submitting FORM 10a, please make sure that you have received PAN CARD for your nonprofit ngo organization.
Following documents are required while registration of 12A:
1. Original basic documents of organization, which evidencing the creation of the NGO should be enclosed, like Trust deed / Bye laws / Rules and Regulations / Memorandum and Articles of Association as per the shape of the nonprofit NGO organization.
2. Two copies of the Accounts of Three previous years should be enclosed. Where the NGO was not in existence in any of three prior years, copies of the accounts of for minimum years may also be submitted.
After you have produced the above FORM 10A either through registered post with acknowledgement due or directly in the Income Tax office, The department will over look your application for fitness towards registration. It may also monitor your organization directly in person to know the genuinity of your NGO organization.
The Income tax officers have the rights to grant or to refuse registration to your application. If the Income tax office get satisfied with your proper documents and with the genuinity of your organization, then you will be certified. Even a 12a certified NGO organization, shall be rejected or cancel the grant by the Income tax department, if it feels your organization is not fit as per law at any time.
80G Registration Process:-
The income tax 1961 has certain provisions which offer tax benefits to the “donors”. All NGOs should avail the advantage of these provisions to attract potential donors. If NGO gets itself registered under section 80G then the person or the organization making the donations to the NGO will get a deduction of 50% from his/its taxable income.
Conditions for registration u/s 80G:-
For 80g approval following conditions are to be met:-
i) The NGO must not have any income which is not exempted, such as company income. If the Ngo has business income,
then it should preserve separate books of accounts and need not divert donations gotten for the purpose of such
business.
ii) The NGO maintains routine accounts of its expenditure & receipts.
iii) The goals of NGO must not contain any regulation for investing the income for purpose aside from charitable
activities.
iv) The NGO is appropriately signed up under the Societies Registration Act 1860 or under any law corresponding to
that act or is signed up under section 26 of the Companies Act 1956.
Following Documents are required for approval under Section 80G of Income Tax Act 2961:-
• Copy of Registration certificate of the ngo and its bye-laws.
• Copy of Pan card of the ngo
• Copies of audited accounts of the institution/ NGO since its inception or last 3 yrs whichever is less.
• Copy of Detail of activities since its inception or last three years whichever is less.
• Details of members of the ngo