12A & 80G REGISTRATION – FULL DETAILS

📌 What is 12A Registration?

Section 12A / 12AB registration grants income tax exemption to NGOs on surplus income under the Income Tax Act, 1961.

✔️ Income of the NGO becomes tax-exempt
✔️ Mandatory for availing benefits under Section 11 & 12
✔️ Without 12A, NGO income is taxable

📌 Issued by: Income Tax Department

📌 What is 80G Registration?

Section 80G allows donors to claim deduction for donations made to the NGO.

✔️ Donors can claim 50% or 100% deduction
✔️ Increases donor confidence & funding
✔️ Cannot be obtained without 12A

📌 Who Can Apply?

✔️ Charitable Trust
✔️ Registered Society
✔️ Section 8 Company

⚠️ Proprietorships & partnerships not eligible

📌 Difference Between 12A & 80G

📌 Validity

✔️ Provisional registration: 3 years
✔️ Regular registration: 5 years
✔️ Renewal mandatory before expiry

📌 Documents Required (FULL LIST)

🔹 NGO Documents

• Trust Deed / MOA & AOA

• Registration Certificate

• PAN Card of NGO

• PAN & Aadhaar of Trustees / Directors

• Address proof of NGO

🔹 Financial Documents

• Last 3 years ITR (if applicable)

• Balance Sheet & Income-Expenditure A/c

• Bank Statement

🔹 Activity Proof

• Activity report

• Photographs of activities

• Donor details (if any)

📌 Application Forms

• Form 10A – Provisional / First-time registration

• Form 10AB – Regular / Renewal registration

📌 Application Process (Step-by-Step)

1️⃣ NGO registration (Trust / Society / Sec-8)
2️⃣ Login to Income Tax Portal
3️⃣ File Form 10A / 10AB
4️⃣ Upload documents
5️⃣ Department verification
6️⃣ Registration Certificate issued

⏱ Time: 1–3 months (approx.)

📌 Conditions to Maintain 12A & 80G

✔️ Income used only for charitable purpose
✔️ No profit distribution
✔️ Proper books of accounts
✔️ Filing of ITR mandatory
✔️ Issue 80G donation receipts

📝 ADVISORY DRAFTS – 12A & 80G

📝 1. Professional Advisory Draft (Client / NGO Use)

Email

SUBJECT : Advisory on 12A & 80G Registration under Income Tax Act

Dear Client,

This is to inform you that registration under Section 12A/12AB and Section 80G of the Income Tax Act, 1961 is essential for charitable organizations to avail income tax exemption and to enable donors to claim tax deduction on donations.

12A registration provides tax exemption to the NGO, whereas 80G registration enhances donor confidence by allowing tax deduction on donations made to the organization.

We strongly recommend obtaining both registrations to ensure statutory compliance, transparency, and long-term sustainability of the organization.

Please feel free to contact us for complete assistance in registration, documentation, and post-registration compliance.

Warm regards,
Authorized Consultant
Firm Name

📝 2. Engagement Letter – 12A & 80G Services

Email

SUBJECT : Engagement Letter for 12A & 80G Registration Services

This letter confirms our engagement to assist you in obtaining registration under Section 12A/12AB and Section 80G of the Income Tax Act, 1961.

Scope of Services:
• Review of NGO documents
• Preparation and filing of Form 10A / 10AB
• Liaison with Income Tax Department
• Assistance until issuance of approval

Client Responsibilities:
• Providing accurate and complete information
• Timely responses to departmental queries

Professional fees and timelines shall be mutually agreed.

Warm regards,
Authorized Consultant

Accepted By:
Name: __________
Signature: __________
Date: __________

📝 3. Declaration / Undertaking for 12A & 80G

Email

SUBJECT : Declaration for 12A & 80G Registration

We hereby declare that the activities of the organization are genuine and carried out solely for charitable purposes as defined under the Income Tax Act, 1961.

We further undertake that:
• Income shall be utilized only for charitable objects
• No profit shall be distributed to members
• Books of accounts shall be properly maintained
• Statutory compliances shall be duly followed

Place: __________
Date: __________

Authorized Signatory
Name & Designation

📝 4. 80G Donation Receipt Format

Email

SUBJECT : Donation Receipt under Section 80G

Received with thanks a sum of ₹ __________ (Rupees ____________________) from ____________________ towards donation.

NGO Name: ____________________
PAN: ____________________
80G Registration No.: ____________________
Date of Donation: __________
Mode of Payment: Cash / Cheque / Online

This donation is eligible for deduction under Section 80G of the Income Tax Act, 1961.

Authorized Signatory
Seal & Signature

📘 COMMON REASONS FOR REJECTION

❌ Non-charitable objects
❌ Incomplete documents
❌ No activity proof
❌ Improper trust deed clauses

🏛️ TRUST / SOCIETY / SECTION 8 COMPANY – 12A & 80G DOCUMENTATION

1️⃣ TRUST DEED – 12A / 80G CLAUSES

A proper Trust Deed is essential for registration under 12A & 80G.

Mandatory Clauses:

1. Name of the Trust

2. Objects / charitable purposes

   • Relief of poor, education, medical relief

   • Advancement of any other object of general public utility

3. Trustees’ details

4. Mode of investment / banking

5. Income application clause:

“The income of the Trust shall be applied solely for charitable purposes and no part shall be distributed to trustees or members.”

6. Auditing clause:

“Accounts shall be audited annually by a qualified Chartered Accountant.”

7. Dissolution clause:

“Upon winding up, remaining assets shall be transferred to another charitable organization with 12A/80G registration.”

2️⃣ SOCIETY MOA / RULES – 12A / 80G CLAUSES

Essential Clauses in MOA / Rules for 12A & 80G:

• Objectives: Charitable, educational, medical, religious

• No profit distribution to members

• Accounts: Annual audit & maintenance

• Trustees / Managing Committee powers

• Dissolution clause as per 12A / 80G guidelines

These clauses are verified by IT Department during application.

3️⃣ SECTION 8 COMPANY – ARTICLES OF ASSOCIATION (AOA) / MOA

Key Clauses:

1. Objects clause – Only charitable purposes

2. No dividend to members

3. Surplus income used for promotion of objects

4. Board powers & duties for compliance

5. Annual audit requirement

6. Dissolution clause: assets transfer to another charitable company

Proper drafting ensures smooth 12A & 80G approval.

4️⃣ NGO COMPLIANCE CALENDAR – 12A / 80G

⚠️ Penalty for non-compliance: Income may become taxable & 80G benefits void

5️⃣ APPLICATION / ADVISORY DRAFTS

📝 1. Advisory Draft (Trust / Society / Section 8 Company)

Email

SUBJECT : Professional Advisory on 12A & 80G Registration for NGOs

Dear Client,

We wish to advise that obtaining 12A / 12AB registration is mandatory for tax exemption of your NGO’s income, while 80G registration is essential for enabling donors to claim tax deduction.

Proper Trust Deed / Society Rules / Section 8 Company MOA must include mandatory clauses regarding application of income, auditing, and dissolution to meet Income Tax Department requirements.

We recommend initiating the registration process immediately to ensure compliance and enhance credibility with donors.

Warm regards,
Authorized Consultant

📝 2. Engagement Letter – 12A / 80G

Email

SUBJECT: Engagement Letter for 12A & 80G Registration Services

Dear Client,

This letter confirms our engagement to assist you in obtaining 12A/12AB and 80G registration for your charitable organization.

Scope of Services:
• Review of Trust Deed / Society Rules / Company MOA & AOA
• Preparation & filing of Form 10A / 10AB
• Liaison with Income Tax Department
• Assistance until issuance of registration certificates

Client Responsibilities:
• Providing authentic documents and information
• Timely responses to departmental queries

Professional fees and timelines shall be mutually agreed.

Accepted By:
Name: __________
Signature: __________
Date: __________

Warm regards,
Authorized Consultant

📝 3. NGO Declaration / Undertaking

Email

SUBJECT : Declaration for 12A & 80G Compliance

We hereby declare that our organization is engaged solely in charitable activities and that all income will be utilized exclusively for charitable purposes.

We further undertake that:
• No part of the income will be distributed among members
• Books of accounts will be properly maintained
• Statutory compliances under Income Tax Act, 1961 will be followed diligently

Place: __________
Date: __________

Authorized Signatory
Name & Designation

📝 4. 80G Donation Receipt

:::writing{id="72104" variant="email" subject="Donation Receipt for Section 80G">}
Received with thanks ₹ __________ (Rupees __________________) from _____________________.

NGO Name: ____________________
PAN: ____________________
80G Registration No.: ____________________
Date of Donation: __________
Mode of Payment: Cash / Cheque / Online

This donation is eligible for deduction under Section 80G of the Income Tax Act, 1961.

Authorized Signatory
Seal & Signature
:::