How to Claim Tax Exemption for NGO Under 80G & 12A?

2. Cooperative Societies

A Cooperative Society is registered under the Societies Registration Act, 1860, and is formed by a group of individuals working together for a common social cause. These organizations focus on:

1. Community development
2. Skill training & education
3. Promotion of arts & culture
4. Religious and environmental causes

Why Choose a Cooperative Society?

1. Encourages collective decision-making & transparency.
2. Best for local community-driven initiatives.
3. Can apply for government grants & subsidies.

Choosing the right type of NGO depends on your organization’s goals, funding sources, and legal preferences.

What is a Trust?

A Trust is a non-profit organization created to support social welfare activities like education, healthcare, and community development. Trusts in India are governed by the Indian Trusts Act, of 1882 and can be categorized as:

1. Public Trusts – Formed for charitable purposes, such as running schools, colleges, or hospitals.
2. Private Trusts – Created for private beneficiaries and are not eligible for tax exemptions under NGO laws.

A Trustor (founder) donates assets or funds to the Trust, which is then managed by a Trustee for the benefit of the community.

Documents Required for 12A Registration (Tax Exemption for NGOs)

To get tax exemption under Section 12A of the Income Tax Act, 1961, an NGO must submit the following documents to the Commissioner of Income Tax (CIT):

Trust Registration Documents:

1. Certified copies of the Trust Deed, Memorandum of Association (MOA), and Articles of Association (AOA).
2. Certificate of Incorporation (if applicable).

Identity & Compliance Documents:

1. GSTIN, CIN, and DIN of the Trust, Society, or Company.
2. Form 10A for 12A Registration and Form 10G for 80G Registration.

Financial Records:

1. Bank statements & financial statements for the past three years.
2. List of donors, investors, and contributors.

Proof of Address & Operations:

1. Registered address proof & ownership documents.
2. Details of past charitable activities conducted by the organization.

Why is 12A Registration Important?

1. Tax exemption on NGO income.
2. Builds credibility and makes it easier to attract donors.
3. Required for government grants & CSR funding.

What is Form 10A?
Form 10A is the official application required for NGOs, Trusts, and Societies to apply for tax exemption under Section 12A and 80G of the Income Tax Act, 1961. This form provides important details about the organization, its founders, activities, assets, and financials.

To successfully file Form 10A, the following documents must be submitted:

1. Certificate of Incorporation (for a company, trust, or society)
2. Trust Deed, MOA, AOA, CIN, DIN
3. PAN & Aadhaar cards of directors and trustees
4. Digital Signature Certificate (DSC) of the trustee or director
5. PAN & GSTIN details of the organization
6. Previous registration certificates (if applicable) under 12A, 12AA, or 80G
7. Financial records (balance sheets, income-expenditure statements) for the past three years

Why Should NGOs Apply for 12A Registration?

12A registration provides multiple tax benefits to NGOs and charitable organizations. Here’s why it’s essential:

1. 100% Tax-Free Income – NGOs can receive funds for charitable or religious activities without paying income tax.
2. Eligible for Donations – NGOs can legally receive contributions from Indian & foreign donors under FCRA rules.
3. Government Grants & CSR Funds – Recognized NGOs with 12A registration are eligible for various government schemes & corporate donations.
4. Credibility & Trust – Registered NGOs gain credibility, making it easier to attract donors and supporters.

Step-by-Step Process for 12A Registration

1. Fill out Form 10A and submit it along with the required documents to the Principal Commissioner of Income Tax (CIT).
2. Application Review – The CIT will verify the details and assess the organization’s purpose.
3. Approval or Rectification – If everything is in order, the CIT grants 12A registration. If not, they may ask for corrections or reject the application.
4. Tax-Exempt Status – Once approved, the NGO gets tax exemption benefits under Sections 12A & 80G.
5. Validity & Renewal –
   – Provisional Registration – Valid for 3 years.
   – Permanent Registration – Valid for 5 years, after which renewal is required six months before expiry.

Want to claim tax exemption for your NGO? Apply for 12A registration today and maximize your impact!

12A registration allows NGOs, trusts, and charitable societies to claim tax exemption on donations and income. This helps organizations save on taxes while ensuring compliance with government regulations. If you run a non-profit organization and want to maximize tax benefits, 12A registration is a must!

1. No Income Tax on NGO Revenue
2. Eligible for Government Grants & CSR Funding
3. Attract More Donations with Tax Deduction Benefits

Why Choose E Accountax Manager for NGO Registration & Tax Exemption?

At E Accountax Manager, we simplify NGO registration and tax exemption processes, helping you stay compliant while focusing on your mission. Our expert team ensures hassle-free paperwork, approvals, and compliance, so you can concentrate on making an impact.

Book your appointment at E Accountax Manager today and take the first step towards hassle-free NGO registration and tax benefits!