12A & 80G

  12A & 80G Registration Certificate NGO can be benefited by the exemption from paying income tax by getting it registered and complying with certain other formalities. But Without 12A registration and 80G registration certificate, NGO cannot provide any benefit to the person making a donation. The Income-tax act 1961 has certain provisions which in return offer tax benefits to donors. All NGOs should not avail the advantages of these provisions in order to attract donors. An NGO can get the benefits of exemption under the income tax act and for availing such exemption it needs to 12A registration & 80G registration of the income tax act. If any donor let it be an individual, firm, company or any person making a donation to an NGO that is registered under 80G, get the deduction of about 50% from their taxable income and some may also qualify at the rate of 100%. 12A registration is one time but has the validity of a lifetime. An NGO that is registered under 12A claims exemption of Income Tax. A newly registered NGO can apply for both types of registrations. Application for the registration under 80G Certificate and 12A Certificate can be applied separately and can be applied together also. Every NGO, Trust, and societies have heard of such registration and also registered it under that to avail various taxation benefits to both societies as well as people to give donations to these societies. With the help of this registration NGOs, Trust and societies can obtain the maximum amount of donation from the general population. In simple words, you can say that it is beneficial for the NGOs, trusts, and societies to get them registered under 12A Certificate and 80G Certificate because even the people who are donating to the NGOs (Non-governmental organization), trusts and societies get tax exemption under the Income-tax act. Consequently, people will donate more to the NGO, trust, and societies which are registered under the 12A certificate and 80G certificate. 

However, One must note that NGOs (Non-Governmental Organization), trusts and societies who are registered under 80G Registration and 12A Registration under the constitution of India are available to qualify for the funding from the government institution. There are a number of benefits that NGOs, trust, and societies can avail, each of the above-listed institutions gets itself registered under 12A and 80G registration, Doing so a particular organization does not have to pay any taxes for the entire lifetime if it gets registered under section 12A.