12A and 80G Registration: Tax Exemption for NGOs and Charitable Institutions

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1. Introduction to 12A & 80G Registration

Non-Governmental Organizations (NGOs), Charitable Trusts, and Section 8 Companies operating for social, educational, religious, or charitable purposes can avail tax exemptions and donor benefits by registering under Section 12A and Section 80G of the Income Tax Act, 1961.

• 12A Registration: Grants income tax exemption on surplus income to the NGO/trust.

• 80G Registration: Enables donors to claim income tax deductions for donations made to the organization.

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2. Importance of 12A and 80G Registration

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3. Benefits of 12A and 80G Registration

✅ Benefits of 12A Registration

• Tax exemption on income used for charitable or religious purposes

• Helps retain surplus for future activities

• Necessary for availing grants from government or CSR funding

✅ Benefits of 80G Registration

• Donors get up to 50% deduction on donations (in some cases 100%)

• Makes your NGO more attractive for donors and corporates

• Encourages donations and improves funding prospects

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4. Eligibility Criteria

• The organization must be a registered Trust, Society, or Section 8 Company

• The entity must not use its income or assets for purposes other than charitable/religious

• No part of the income should benefit a specific individual or group

• Proper books of accounts must be maintained

• The entity must not engage in commercial activities beyond permitted limits

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5. Documents Required