80G REGISTRATIONS
The donor of an NGO receives benefits when the NGO is registered under Section 80G of the Income Tax Act.
Benefits:
• Improves any organization's prospects and credibility
• Less taxable income favors the donors.
• Potential for luring in additional contributors
• Obtaining government funding eligibility
• Owners of NGOs can easily request donations from abroad.
12A REGISTRATIONS
If certain requirements are met, Trusts, Societies, and Section 8 Companies may apply for registration under Section 12A of the Income Tax Act in order to claim an exemption under the Income Tax Act of 1961. Section 12AA deals with the online trust registration process, while Section 12A deals with trust registration.
Benefits:
• Possibility of receiving funding from governments and international organizations.
• The registration certificate is sufficient evidence of the NGO's mission and activities.
• All NGOs, whether they are trusts, corporations, or societies, are eligible to receive tax exemptions.
• Benefits of FCRA registration.
Registering for Section 80G & 12A:
• Complete Form 10A.
• Provide the required paperwork
• To be verified
Documents required for 80G & 12A REGISTRATION:
• Registration certificates and paperwork for companies, trusts, and societies
• The directors' or trustees' PAN card copy
• The directors' or trustees' copy of their Aadhaar card
• Digital signature of a trustee or director
• copies of the company's bylaws (AOA, MOA)
• all financial year audit reports since incorporation
• Financial statements that have been audited for each financial year since incorporation