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For those managing a non-governmental organization (NGO) in Lucknow, gaining an exemption from income tax can significantly support your mission. My Startup Solution offers assistance in securing both 12A and 80G registration, enabling you to carry out your impactful initiatives without the encumbrance of tax obligations.
The 80G Certificate, issued by the Income Tax Department of India under section 80G of Income Tax Act, 1961, holds significant value for non-profit organizations, NGOs, charitable trusts, and Section 8 Companies. It aims to encourage more contributions from individuals and entities towards these benevolent causes.
Covering the core of the 80G Certificate, let's now delve into the registration procedure. Acquiring this certificate entails following a set of organized steps diligently.
Step 1: Application Submission
Initiating the process, organizations seeking an 80G Certificate must submit a detailed application to the Commissioner of Income Tax in their jurisdiction. This application should encompass all requisite documents.
Step 2: On-Site Inspection
Following the submission of the application and necessary documents, the Income Tax department initiates an on-site inspection of the organization's premises. This step is crucial to ensure transparency and legitimacy.
Step 3: Additional Documentation
During the inspection, officials may require supplementary documents and evidence. It's crucial for the organization to promptly furnish these to expedite the process.
Step 4: Certification
Upon satisfactory completion of the verification process and scrutiny of documents, the Commissioner bestows the coveted 80G Certificate upon the organization. This certificate serves as a valuable asset, unlocking opportunities for potential donors.
Section 12A of the Income Tax Act, 1961, offers a significant benefit to Trusts, NGOs, and Section 8 companies by exempting them from paying income tax. These entities typically engage in charitable and non-profit activities while also earning income. Without Section 12A Registration, they would be obligated to pay taxes at regular rates. It's important to highlight that Section 12A applies equally to both charitable and religious organizations, ensuring accessibility to a diverse array of institutions.
Initiating the Application
To acquire 12A Registration, entities must adhere to a specified procedure outlined in Form 10A, as per Rule 17A of the Income Tax Act, 1961. Here's a brief overview of the application process:
Verification and Assessment
Upon receiving your application and accompanying documents, the Commissioner begins a thorough assessment of your organization's activities. This evaluation is crucial for determining the validity of your request. The main steps in this process include:
Post-Registration Considerations
It should be noted that 12A Registration does not confer an indefinite privilege. There are various factors that may result in its cancellation:
To be eligible for 80G and 12A registrations, NGOs and charitable organizations must meet specific criteria:
To initiate the registration procedure, you must collect a series of essential documents. These documents consist of:
Acquiring 80G and 12A registration typically takes between 50 to 80 days, but there are ways to speed up the process:
It is important to highlight the charges linked with 80G and 12A enrollment:
Looking to secure 80G/12A registration for your nonprofit in Lucknow? Look no further than MyStartupSolution. Our expert team specializes in providing the best-in-class registration services tailored to your organization's needs. With a deep understanding of regulatory requirements, we ensure a seamless process, allowing you to focus on your mission. Contact us today at +91-8795224400 or email us at info@mystartupsolution.in to discuss how we can assist you in achieving your charitable goals.
The 80G Certificate, issued under section 80G of the Income Tax Act, 1961, provides tax benefits to non-profit organizations, NGOs, charitable trusts, and Section 8 Companies, encouraging contributions towards benevolent causes.
To obtain an 80G Certificate, organizations must submit a detailed application to the Commissioner of Income Tax, undergo an on-site inspection, provide additional documentation if required, and upon verification, receive certification.
Section 12A of the Income Tax Act, 1961, exempts Trusts, NGOs, and Section 8 companies from paying income tax. 12A Registration is essential for these entities engaged in charitable activities to avail of this exemption.
Eligible entities for 80G and 12A registrations must not earn income from business activities, have a legal structure as a charitable trust or registered society, utilize assets and income solely for charitable purposes, maintain financial transparency, refrain from benefiting trustees, and uphold non-discrimination principles.
Essential documents include self-certified duplicates of the Memorandum of Association or trust deed, verification of the registered office, NGO's PAN Card, utility bills, Form 10G, proof of welfare activities, financial records, contributor details, and trustee information.
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