{"time":1757416441133,"blocks":[{"id":"3ltwBPTScN","type":"header","data":{"text":"INTRODUCTION","level":2}},{"id":"shlZQNgWcf","type":"paragraph","data":{"text":"When an NGO begins its journey, the vision is always noble – upliftment of communities, support for the needy, or driving social change. But the practical reality is that no non-profit organization can survive without consistent funding. Whether it is a small grassroots initiative or a well-established charitable trust, finances keep the social wheels running. And here comes the importance of NGO 12A 80G registration in India."}},{"id":"2unObOFSw8","type":"paragraph","data":{"text":"Both 12A and 80G certificates are tax-related approvals that help NGOs to sustain their work while making it easier for donors to contribute. A 12A registration exempts the NGO from paying income tax on surplus funds, and an 80G certificate gives tax relief to the donors themselves. In other words, these two registrations make an NGO financially sustainable and attractive to supporters."}},{"id":"6IRoF-CedU","type":"paragraph","data":{"text":"This blog aims to simplify these concepts for founders, trustees, and social entrepreneurs. We’ll break down what these certificates are, why they’re needed, the latest rules, and a detailed process to apply. By the end, you’ll understand how to legally secure tax benefits and how Lawfinity can be your guiding hand through this compliance maze."}},{"id":"vCDUyyOXPS","type":"header","data":{"text":"WHY SUCH CERTIFICATE IS REQUIRED?","level":2}},{"id":"OiSN6GhXco","type":"paragraph","data":{"text":"There’s a common misconception that since NGOs are “non-profit,” they are automatically tax-free. That’s not the case. Without proper registrations, any income or donations received by the NGO are taxable under the Income Tax Act, just like a business entity."}},{"id":"oiB3j9IAqg","type":"paragraph","data":{"text":"Here is why 12A and 80G certificates are essential:"}},{"id":"oA9K9ghjPI","type":"list","data":{"style":"unordered","meta":{},"items":[{"content":"For NGOs: 12A registration ensures that the income of the NGO is not taxed. This includes donations, grants, membership fees, or any other funds. Essentially, every rupee raised can be used for social impact rather than being drained into taxes.","meta":{},"items":[]},{"content":"For Donors: 80G registration acts as an incentive for individuals, companies, and institutions to donate, because they get tax deductions on the amount they contribute. Depending on the type of donation, they can claim up to 50% or 100% deduction from taxable income.","meta":{},"items":[]}]}},{"id":"ZTQBnwo3u5","type":"paragraph","data":{"text":"Without them, not only does the NGO pay more tax, but it also struggles to attract serious funding."}},{"id":"wqB3b-M0Eo","type":"header","data":{"text":"Key Benefits of 12A and 80G Registration for NGOs","level":3}},{"id":"mQP__r4Lhg","type":"paragraph","data":{"text":"Getting these certificates is not just a legal formality – it is a real game changer for NGOs. Some of the most important benefits are:"}},{"id":"IUA_-_v1vl","type":"list","data":{"style":"ordered","meta":{},"items":[{"content":"Income Tax Exemption for NGOs: With 12A registration, the NGO does not have to pay income tax on its surplus or donations. This means more funds are directly available for charitable projects.","meta":{},"items":[]},{"content":"Tax Deduction for Donors (NGO donor benefits): Donors can claim deductions under Section 80G of the Income Tax Act, which encourages higher donations and recurring contributions.","meta":{},"items":[]},{"content":"Enhanced Credibility: Having both 12A and 80G certificates builds trust with corporates, CSR wings, and institutional donors. It signals that the NGO operates transparently and within the law.","meta":{},"items":[]},{"content":"Eligibility for CSR Funding: Most companies providing CSR support prefer to donate to NGOs that hold valid 80G certification. Without it, CSR grants are difficult to secure.","meta":{},"items":[]},{"content":"Smoother Foreign Donations: International agencies and individuals are more likely to fund NGOs that are registered under 12A/80G, as it ensures financial transparency.","meta":{},"items":[]},{"content":"Operational Sustainability: With steady donor inflows and exemption from taxation, NGOs can plan long-term projects without worrying about financial instability.","meta":{},"items":[]},{"content":"Stronger Public Image: Being recognized by the Income Tax Department adds a layer of authenticity, improving the NGO’s reputation in the eyes of the community and stakeholders.","meta":{},"items":[]}]}},{"id":"GPu09gFlpg","type":"image","data":{"caption":"Key Benefits of 12A and 80G Registration for NGOs","withBorder":false,"withBackground":false,"stretched":false,"file":{"url":"https://res.cloudinary.com/dmd2a1z29/image/upload/v1757416293/qniszgbv1rdixt1m5flc.jpg"}}},{"id":"M4-PgxKmpa","type":"header","data":{"text":"WHO ISSUES SUCH LICENCE/CERTIFICATE?","level":2}},{"id":"8yzpmQM1Ru","type":"paragraph","data":{"text":"Both 12A and 80G certificates are issued by the Income Tax Department of India under the Income Tax Act, 1961. The applications are filed online through the Income Tax e-filing portal, and the final decision lies with the jurisdictional Principal Commissioner of Income Tax (Exemptions)."}},{"id":"ucbCnAr6ld","type":"paragraph","data":{"text":"Earlier, these registrations were granted for a lifetime. But after amendments introduced through the Finance Act, 2020, all NGOs must now apply for revalidation and renewals. Currently, fresh 12A/80G registrations are given for a period of 5 years, after which the NGO must reapply."}},{"id":"ijP0pND6yd","type":"paragraph","data":{"text":"So, NGOs need to stay alert about compliance dates to ensure continuity of their tax benefits."}},{"id":"k0P_W6MvVf","type":"header","data":{"text":"ELIGIBILITY AND DOCUMENTS REQUIRED FOR SUCH LICENCE/CERTIFICATE","level":3}},{"id":"g8zHeFO9ue","type":"paragraph","data":{"text":"Not every organization is eligible. Only genuine non-profits created for charitable purposes can apply. The eligibility criteria are as follows:"}},{"id":"IZhJPa511u","type":"paragraph","data":{"text":"Eligible Entities:"}},{"id":"DwjVqCgFcG","type":"list","data":{"style":"unordered","meta":{},"items":[{"content":"Charitable Trusts","meta":{},"items":[]},{"content":"Societies registered under Societies Registration Act","meta":{},"items":[]},{"content":"Section 8 Companies (non-profit companies under Companies Act, 2013)","meta":{},"items":[]}]}},{"id":"HNrthaB_bi","type":"paragraph","data":{"text":"Ineligible Entities:"}},{"id":"0xo9fijK_z","type":"list","data":{"style":"unordered","meta":{},"items":[{"content":"Private or family-benefit trusts","meta":{},"items":[]},{"content":"Political organizations","meta":{},"items":[]},{"content":"NGOs created for profit motives","meta":{},"items":[]}]}},{"id":"_tUWfkQmQc","type":"paragraph","data":{"text":"Documents Required:"}},{"id":"Td-uxM6huE","type":"paragraph","data":{"text":"For 12A and 80G registration, the following documents are generally required:"}},{"id":"s2LE7iCzVY","type":"list","data":{"style":"ordered","meta":{},"items":[{"content":"Constitutional Documents – Trust deed, Society registration certificate, or Section 8 incorporation certificate.","meta":{},"items":[]},{"content":"PAN of NGO – Mandatory for registration.","meta":{},"items":[]},{"content":"Details of Trustees/Directors – PAN, Aadhaar, address proof.","meta":{},"items":[]},{"content":"Financial Statements – Audit reports, income & expenditure accounts, balance sheets of the last 3 years (if applicable).","meta":{},"items":[]},{"content":"Activity Report – Statement of charitable activities carried out by the NGO since inception.","meta":{},"items":[]},{"content":"Utility Bill – Proof of registered office address of the NGO.","meta":{},"items":[]},{"content":"Bank Account Details – Bank statement/cancelled cheque of the NGO.","meta":{},"items":[]},{"content":"Registration under other laws (if applicable) – FCRA registration, Darpan ID, etc.","meta":{},"items":[]}]}},{"id":"a4huRDeECe","type":"paragraph","data":{"text":"These documents are scanned and uploaded online while applying through the Income Tax portal."}},{"id":"rPJs73VEKH","type":"header","data":{"text":"PROCESS FOR OBTAINING 12A AND 80G CERTIFICATES FOR NGO","level":3}},{"id":"iVt2C79vI0","type":"paragraph","data":{"text":"Getting an NGO 12A 80G registration involves multiple steps. Here’s a simplified step-by-step guide:"}},{"id":"qXq-xyZi7N","type":"paragraph","data":{"text":"Step 1: Preparation of Documents"}},{"id":"vX60VTwX50","type":"paragraph","data":{"text":"Compile all necessary documents like trust deed, PAN, audited accounts, and trustee details. Accuracy here is critical because incomplete submissions often lead to rejections."}},{"id":"ID7fjVebb-","type":"paragraph","data":{"text":"Step 2: Online Application on IT Portal"}},{"id":"_IChSjv_MP","type":"list","data":{"style":"unordered","meta":{},"items":[{"content":"Log in to the Income Tax e-filing portal (using NGO’s PAN-based ID).","meta":{},"items":[]},{"content":"Select Form 10A (for new registration) or Form 10AB (for renewal/revalidation).","meta":{},"items":[]},{"content":"Fill in details of the NGO, its objectives, trustees, and financials.","meta":{},"items":[]}]}},{"id":"Sv6vqSSfVQ","type":"paragraph","data":{"text":"Step 3: Uploading of Documents"}},{"id":"BsQGw-86Py","type":"paragraph","data":{"text":"Attach the supporting documents (scanned PDFs). Ensure file sizes and formats match IT portal requirements."}},{"id":"CWBCRzShZW","type":"paragraph","data":{"text":"Step 4: Submission with Digital Signature"}},{"id":"XI1l48AVXS","type":"paragraph","data":{"text":"The form must be signed either using the NGO’s Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)."}},{"id":"j1ZZSg0bdk","type":"paragraph","data":{"text":"Step 5: Scrutiny by Commissioner of Income Tax (Exemptions)"}},{"id":"wYW9glGXh2","type":"paragraph","data":{"text":"The concerned Commissioner examines the application. If needed, additional documents or clarifications may be sought."}},{"id":"ymajOFq2xS","type":"paragraph","data":{"text":"Step 6: Grant of Registration"}},{"id":"5XPNq91HiH","type":"paragraph","data":{"text":"Once satisfied, the Commissioner issues 12A and/or 80G registration certificates. These are communicated online, downloadable from the portal."}},{"id":"QVhYHQeKnh","type":"paragraph","data":{"text":"Timeline:"}},{"id":"10slkBvTok","type":"paragraph","data":{"text":"Typically, the process takes 1–3 months if documents are in order. However, delays are common if queries are raised."}},{"id":"rOzPU__K0T","type":"header","data":{"text":"HOW LAWFINITY SIMPLIFIES SUCH LICENCE/CERTIFICATE PROCEDURE?","level":2}},{"id":"IC5_6G-4gf","type":"paragraph","data":{"text":"At Lawfinity, we understand that NGOs are started with passion, not paperwork. Yet compliance is unavoidable. The forms, IT portal, and queries from the tax department can be intimidating for social entrepreneurs."}},{"id":"kYYmV4sIjz","type":"paragraph","data":{"text":"This is where we step in:"}},{"id":"Zh4vTBn_Sl","type":"list","data":{"style":"unordered","meta":{},"items":[{"content":"End-to-End Guidance: From eligibility check to document preparation, we handle it all.","meta":{},"items":[]},{"content":"Error-Free Applications: Our experts ensure correct filing of Form 10A/10AB, minimizing chances of rejection.","meta":{},"items":[]},{"content":"Timely Follow-ups: We track your application with the Commissioner and respond to queries on your behalf.","meta":{},"items":[]},{"content":"Renewal Reminders: Since registrations are valid for 5 years, we ensure you never miss revalidation deadlines.","meta":{},"items":[]},{"content":"Advisory Beyond Registration: We also help with FCRA, CSR compliance, and accounting for NGOs.","meta":{},"items":[]}]}},{"id":"gcnGxV-K41","type":"paragraph","data":{"text":"With Lawfinity, the compliance burden is off your shoulders so that you can focus on what matters – your cause."}},{"id":"_ss8Jw9uxG","type":"header","data":{"text":"MUSINGS FROM THE AUTHOR’S INK","level":3}},{"id":"Rvkl94gQAq","type":"paragraph","data":{"text":"Working with NGOs has taught me one thing – most founders never start with paperwork in mind. Their heart is in the field, not in forms and portals. But unfortunately, passion alone does not sustain social initiatives."}},{"id":"Jh-hV7mY5Z","type":"paragraph","data":{"text":"The government has created these 12A and 80G mechanisms to encourage charity and to ensure transparency in the sector. An NGO that doesn’t secure these certificates may eventually struggle, not because its cause is weak, but because its compliance is."}},{"id":"PgxJISSXy7","type":"paragraph","data":{"text":"Think of it like this – if donors are the lifeblood of your NGO, then 12A and 80G are the arteries that keep that blood flowing smoothly. Without them, the system weakens."}},{"id":"h50P24PuS1","type":"paragraph","data":{"text":"My advice to all NGOs is simple – treat compliance as part of your strategy, not as a burden. And when in doubt, get professional help. After all, every rupee saved from taxes or gained from a donor’s tax benefit can translate into food for a child, books for a student, or medicine for the sick. Isn’t that the whole purpose?"}}],"version":"2.31.0-rc.7"}