12AA &80G REGISTRATION

• Non -profit organizations such as Trusts, charitable organizations etc which have the main objects for social cause of society are eligible to apply for registration under sec 12AA and 80G to claim tax exemption of income earned by them through such organizations.
• Such registration helps in FCRA registration and its benefits.
• Grants from various Government and other organizations.

Benefits of Registration under Section 12AA:

• The income received will be exempted from taxation.
• The fund that is used for charitable or religious purposes is termed as income application. It is nothing but the expenses on charitable or religious purposes while calculating the income of the trust.
• 12A registered organisation can apply for 80G registration also.
• The organization  registered u/s 12A can avail benefits for accumulating or setting aside income which is not more than 15% of total income.

Benefits of registration u/s 80G:

Section 80G of the Income Tax Act’1961 provides deduction while computing the total income in the hands of donor. It provides deduction in respect of donations to certain funds, charitable institutions, etc.

The recipient of money or the donee gives a receipt of donation, based on which the donor is entitled to claim a deduction, provided the donee institution is approved under section 80G of the Income Tax Act’1961.

Process for registration u/s 12A:

• The applicant will apply for 12A registration in Form 10A on Income tax portal login through valid digital signatures.
• On receipt of an application for registration of a trust or institution,the application shall be reviewed by Principal Commissioner or Commissioner Of Income Tax (exemptions),if found satisfactory,the officer may call for further documents or information  as may require.
• After reviewing of all the documents in detail,if the officer is satisfied he may approve the application, or reject the same if he is not satisfied.
• An opportunity for correction in the documents shall be given to the applicant before rejection of the same.
• After correction of all the pendencies, the officer may issue certificate for registration.

Documents for 12A Registration:

• Self-certified copy of Trust Deed or Instrument, where the trust is created under an instrument.
• Self- certified copy of the document evidencing the creation of the trust, where the trust is created, otherwise than under an instrument.
• Self-certified copy of registration with Registrar of Companies (RoC) or Registrar of Firms and Societies or Registrar of Public Trusts.
• Self-certified copy of the documents evidencing adoption or modification of the objects, if any;
• Where the trust has been in existence for during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the trust relating to such prior year or years (but not more than 3 years immediately preceding the year).
• Note on the activities of the trust or institution.
• Self-certified copy of the existing order granting registration under section 12A or section 12AA, if any.