Overview
80G Registration: It is a provision under the Income Tax Act, 1961 in India that allows nonprofit organizations to provide tax benefits to donors. NGOs need to apply to the Income Tax Department for 80G registration, and upon approval, they receive an 80G certificate to share with donors for tax deductions on their contributions.
12AA Registration: It is the initial registration sought by nonprofits to claim tax exemption on their income. NGOs apply to the Commissioner of Income Tax or the prescribed authority for 12AA registration, and upon approval, they become eligible for income tax exemption.
Basic Requirements
01
Nonprofit organization
02
Registration certificate
03
Financial records
04
Compliance
03
No political activities
Documents Requirements
Documents of Trustees/Members
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PAN Card
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Aadhar card
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Address Proof ( Electricity Bill / Water Bill / Property Tax / Driving Licence / Passport / Bank Statement )
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Colour Photo
Business Address Proof
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Address Proof (owned) Sale Deed ( Ownership Documents), Electricity Bill / Propert Tax
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Address Proof (Rented) Rent Agreement , Electricity bill, NOC from Owner of the premises
Advantages
Separate Legal Entity
A Pvt. Ltd. Co. is a separate legal entity from its shareholders, which means it can enter into contracts and own assets in its own name.
Limited liability of Shareholders
Share Capital.
Perpetual Succession
It has a perpetual succession, meaning it continues to exist regardless of changes in shareholders
or directors.
Fund Raising
for fund raising
Professional Management
A Pvt Ltd Co. is usually managed by a board of directors, which leads to more professional
management.
Tax Benefits
Branding and Reputation