If you’re leading an NGO, understanding 12A and 80G registration is crucial. These registrations can significantly impact your organization’s growth and credibility. At Komal Ahuja, we specialize in guiding nonprofits through the 12A and 80G registration process with ease.
What is 12A and 80G Registration?
12A Registration ensures that your NGO is recognized as a charitable organization. It allows your nonprofit to receive tax exemptions on income. This registration is vital for maintaining compliance with tax regulations and enhancing the credibility of your organization.
80G Registration offers donors tax deductions on contributions made to your NGO. This registration not only incentivizes donations but also boosts your organization’s fundraising efforts. With 80G, donors can claim a deduction of up to 50% on their contributions, making it easier to attract and retain supporters.
The Importance of 12A and 80G Registration
Obtaining 12A and 80G registration is more than a formality. These registrations provide numerous benefits:
Tax Exemptions: 12A registration grants your NGO tax exemptions on income, reducing your financial burden.
Donor Attraction: 80G registration makes donations more attractive. Donors can enjoy tax benefits, increasing the likelihood of their contributions.
Credibility Boost: Both registrations enhance your NGO's credibility. They demonstrate that your organization is compliant with regulatory requirements and committed to transparency.
The Process of 12A and 80G Registration
Navigating the 12A and 80G registration process can be complex. However, with the right guidance, it becomes manageable. Here’s a simplified overview:
Prepare Documentation: Collect all necessary documents, such as your NGO’s trust deed, PAN card, and financial statements.
Submit Application: File the application with the Income Tax Department for 12A registration. For 80G, submit an additional application along with your 12A documents.
Follow Up: Ensure that you follow up on your application to address any queries or additional requirements from the authorities.