80G and 12AA are sections under the Income Tax Act of India that provide significant tax benefits to charitable organizations and their donors. You can choose My All Business Consultant as your top Income Tax Consultant.

• Section 80G12AA: This section of the Income Tax Act allows individuals and businesses to claim tax deductions on donations made to certain charitable organizations and funds. Donations made to organizations registered under section 80G are eligible for deduction from the donor’s taxable income, subject to certain limits and conditions. The amount eligible for deduction varies depending on the type of organization and the percentage specified under section 80G.
• Section 12AA: This section deals with the registration of charitable organizations or trusts under the Income Tax Act. Organizations seeking tax exemption for their income and donations must obtain registration under section 12AA. Registration under this section ensures that the income of the organization is exempt from taxation to the extent it is applied for charitable purposes. It also provides credibility to the organization and encourages donations from individuals and businesses seeking tax benefits.

1. Charitable Trusts
2. Non-Governmental Organizations (NGOs)
3. Religious Institutions
4. Educational Institutions
5. Healthcare Organizations
6. Cultural Institutions
7. Environmental Organizations

1. 12AA Registration: This section deals with the registration of charitable institutions or trusts. Organizations seeking tax-exempt status for their income must obtain registration under this section. The registration ensures that the income of the organization is applied for charitable purposes and is exempt from taxation to the extent specified under the Income Tax Act.
2. 80G Registration: This section allows taxpayers to claim deductions for donations made to eligible charitable organizations. The donations must be made to institutions or funds approved by the Income Tax Department under this section. Once approved, the organization issues donation receipts to donors, who can then claim deductions from their taxable income based on the amount donated.

Documents Required for 80G Registration

1. Application Form: Duly filled and signed application.
2. MOA / AOA: Memorandum and Articles of Association.
3. Trust Deed / Constitution Document: Registered trust deed or constitution.
4. Registration Certificate: Trust / Society / Section 8 Company registration certificate.
5. Audited Financial Statements: Balance Sheet & Income & Expenditure statement.
6. Details of Activities: Brief note on charitable activities carried out.
7. PAN Card: PAN of the trust / organization.
8. Bank Account Details: Cancelled cheque or bank statement.
9. Donation Receipts: Sample copy of donation receipt.
10. Other Supporting Documents: Any additional documents as required by the Income Tax Department.

Documents Required for 12AA Registration

1. Application Form: Duly completed application for 12AA registration.
2. MOA / AOA: Memorandum and Articles of Association.
3. Trust Deed / Constitution Document: Registered trust deed or governing document.
4. Registration Certificate: Trust / Society / Section 8 Company certificate.
5. Audited Financial Statements: Financials for the last 3 years or since inception.
6. PAN Card: PAN card of the organization.
7. Bank Account Details: Cancelled cheque or recent bank statement.
8. Donation Receipts: Copies of donation receipts issued.
9. Details of Charitable Activities: Complete activity report with photographs (if available).
10. Other Supporting Documents: Any additional information required by authorities.

Benefits for Charitable Organizations (12AA Registration)

• Tax Exemption: Income of the organization is exempt from Income Tax when used for charitable purposes.
• Credibility: Enhances trust and credibility among donors, government authorities, and stakeholders.
• Attracting Donations: Registered organizations are more likely to receive donations from individuals and corporates.
• Transparency and Accountability: Promotes proper governance, financial discipline, and regulatory compliance.

Benefits for Donors (80G Registration)

• Tax Deductions: Donors can claim deductions on donations made, as per limits specified under Section 80G.
• Encouragement to Donate: Tax benefits motivate individuals and businesses to contribute more.
• Support for Charitable Causes: Enables donors to contribute towards social, educational, and humanitarian causes.
• Alignment with Personal Values: Helps donors support causes that align with their social and ethical values.

Registration under Sections 80G and 12AA of the Income Tax Act is a structured process that enables charitable organizations to obtain tax exemptions and offer tax benefits to donors. Below is the complete step-by-step procedure followed to ensure smooth and compliant registration.

1. Step 1: Determine Eligibility
   The first step is to verify whether the organization meets the eligibility criteria for registration under Sections 80G and 12AA. Organizations engaged in genuine charitable activities such as education, healthcare, relief to the poor, environmental protection, advancement of religion, or any other activity benefiting society are eligible to apply.
2. Step 2: Prepare Documentation
   All required documents must be collected and organized before filing the application. These include:
   • Memorandum and Articles of Association (MOA/AOA)
   • Trust Deed or Constitution Document (if applicable)
   • Registration Certificate of the organization
   • Audited financial statements for the last three years (or since inception)
   • PAN Card of the organization
   • Bank account details
   • Donation receipts (if available)
   • Details of charitable activities and ongoing projects
3. Step 3: Fill Application Form
   The prescribed application form (Form 10A or Form 10AB, as applicable) must be filled accurately through the Income Tax Department’s online portal. All details related to the organization, trustees, objectives, and activities should be entered carefully to avoid rejection or delays.
4. Step 4: Submit Application
   After completing the application form, it must be submitted online along with all supporting documents to the jurisdictional Commissioner of Income Tax (Exemptions), under whose authority the registered office of the organization falls.
5. Step 5: Verification and Inspection
   The Income Tax Department may review the submitted documents and, if required, conduct verification of financial records and charitable activities. Clarifications or additional information may be requested during this stage.
6. Step 6: Issue of Registration Certificate
   If the authorities are satisfied with the authenticity and compliance of the organization, a registration certificate under Section 12AA is issued, granting tax exemption on income. Additionally, approval under Section 80G is granted, allowing donors to claim tax deductions on donations made to the organization.
7. Step 7: Ongoing Compliance
   After registration, the organization must comply with ongoing statutory requirements, including maintaining proper books of accounts, filing income tax returns, adhering to charitable objectives, and renewing registrations as per applicable rules.

To ensure accuracy, compliance, and a hassle-free registration process, it is strongly recommended to consult experienced tax professionals. My All Business Consultant provides expert guidance and end-to-end support for 80G and 12AA registration, helping organizations achieve compliance efficiently while focusing on their charitable mission.