Difference Between 12A and 80G & Their Online Registration Processes

[Ishita Ramani]

When setting up a Non-Governmental Organization (NGO), Trust, or Section 8 Company in India, obtaining tax exemptions through 12A and 80G registrations is essential. These help NGOs grow sustainably and encourage donors by offering tax benefits.

This article will help you know the differences between their Online Registration Process for 12A and 80G.

What is 12A Registration?

12A registration is a tax exemption status granted by the Income Tax Department to NGOs, allowing them to receive income without paying tax, provided it is used for charitable purposes. Without this, the income of an NGO is taxable.

What is 80G Registration?

80G registration allows donors to claim tax deductions on the donations they make to a registered NGO. It encourages more donations by offering a tax-saving incentive.

Key Differences Between 12A and 80G

1. Purpose

• 12A: Provides tax exemption to the NGO.
• 80G: Offers tax benefits to donors.

2. Who Benefits

• 12A: The NGO itself.
• 80G: Individuals or companies donating to the NGO.

3. Necessity

• 12A: Mandatory for the NGO to get an exemption from income tax.
• 80G: Optional, but important to attract donors.

4. When to Apply

• 12A: Immediately after registration of the NGO.
• 80G: Can be applied along with or after 12A registration.

5. Validity

• Both are typically valid for 5 years and must be renewed.

Online 12A Registration Process

• Visit the Income Tax E-Filing Portal
• Log in using the NGO’s PAN details.
• Go to “e-File” > “Income Tax Forms” > select “Form 10A”.
• Fill in the details and upload the necessary documents.
• Submit the form using DSC.

Online 80G Registration Process

• Apply for 80G through Form 10G on the same portal.
• Submit documents related to registration, activities, PAN, etc.
• File using DSC and await processing.
• Receive a certificate upon approval.

Conclusion

Both 12A and 80G are crucial for NGOs to build trust and operate tax-efficiently. The Online 12A Registration Process simplifies compliance and helps organizations focus on their goals without worrying about financial or legal burdens.