Starting and running an NGO in India involves a lot of legal procedures. Two important registrations for NGOs are 12A and 80G Registration. These registrations offer numerous benefits, including tax exemptions and recognition from the government. If you are looking to set up a trust or society, understanding these registrations is crucial.
What is 12A and 80G Registration?
12A Registration is the first step to gaining tax-exempt status for your NGO. It ensures that your NGO is recognized as a charitable organization under Indian law. After acquiring 12A registration, your NGO will be exempt from paying income tax on donations received and other income generated for its charitable purposes.
On the other hand, 80G Registration allows donors to claim tax deductions on the donations they make to your NGO. This registration is a way to encourage people to contribute more by giving them tax relief. It builds trust and credibility for your NGO among donors.
Why is 12A and 80G Registration Important?
12A and 80G registration not only provide tax exemptions to the NGO but also increase its credibility. Many donors prefer contributing to organizations that have these registrations, knowing their contributions will be tax-deductible. NGO Expert helps guide you through the entire process, making sure your organization is legally compliant.
NGO Darpan Registration
Before applying for 12A and 80G Registration, NGOs must complete NGO Darpan Registration. This is an online portal provided by the Government of India for non-governmental organizations. Registering on NGO Darpan is essential for transparency and accountability. Once registered, your organization can gain access to government schemes, and the registration number will act as proof of your legal status. NGO Expert provides support to help you through this step as well.
Trust Registration: Another Step to Legal Compliance
If you are starting a trust, the first legal step is trust registration. This involves drafting a trust deed and registering it with the relevant authorities. The deed outlines the objectives, rules, and functions of the trust. Trust registration is mandatory before applying for 12A and 80G registration.
Trust registration ensures that your organization is legally recognized, which is critical to applying for 12A and 80G. Once your trust is registered, NGO Experts can assist you in completing the necessary paperwork for these registrations.
Process of Applying for 12A and 80G Registration
The application process for 12A and 80G Registration is straightforward but requires a good understanding of the legal framework. The process includes:
- Submit application to the Income Tax Department.
- Provide necessary documents like the trust deed, NGO Darpan Registration, and PAN card.
- Verification by authorities, followed by approval.
NGO Expert ensures that your application is complete and follows the legal guidelines, increasing your chances of approval.
Benefits of 12A and 80G Registration
- Tax exemptions for the NGO.
- Tax deductions for donors.
- Increased credibility among donors.
- Legal compliance for transparency.
Having 12A and 80G Registration boosts your organization’s trustworthiness and helps you attract more funds.
Conclusion
Incorporating 12A and 80G Registration is crucial for the success and growth of your NGO. Whether you are registering a trust or applying for NGO Darpan Registration, NGO Expert is here to assist you through each step. With our guidance, your NGO will be on its way to achieving legal recognition and securing financial support from generous donors.
