Income Tax Exemption and Rebate Certificate Registration Service
12 A Registration
Chanakya NGO Consultancy provides registration for Income Tax exemption under section 12A of Income Tax Act for NGO to get the Income Tax rebate on the annual income of the NGO. An organization with registration under Section 12AA of the Income Tax Act 1961 enjoys tax exemption benefits. 12A Registration is applied for 5 years that can exempt Income Tax of an organization. After this registration all income shall not be taxable. The application form that is being used to apply for 12A Registration is form 10A. The application takes about 2 go 6 months depends on the concerned Income Tax Authority of different states. Application for the purpose of registration under section 12A can be applied to the Commissioner of Income tax department (Exemption) having jurisdiction over the institution. This is registration is now valid for 5 years only and required to renew after 5 years. Previously is was valid for lifetime with no requirement for renewal but the law is changed and certain limitation is imposed.
Government and corporate houses prefer to give donations to 12A and 80G registered organizations under. Application for 12A registration can be made just after legal inception of the organization. Certificates of these registrations are very important as they need to be present before many organizations whenever making an appeal for funds, cooperation or FCRA registration. Private or family trusts are not allowed to receive 12A certificate. There are certain rules which must be followed in order to obtain a 12 A certificate. The organization should be registered under the Societies Registration Act 1860, or section 8 (previously section 25) of the Companies Act 1956 or Indian Trust Act 1882 or Charitable Trust Act or Religious Trust Act or Devsthan Trust Act of Rajasthan or Maharashtra Trust Act or Bombay Trust Act or any of the applicable Act for Registration of NGO.
Check here to understand more about 12A Registration process
How Chanakya will help you in 12A Registration Certificate:
You need to hand over us all the essential documents and we will fill up all the forms for your NGO and apply for 12A registration and proceed for the registration process at consultancy part.
The documents required for 12A Registration are:
- Registration certificate
- Memorandum of Association (MOA) / Trust Deed copy
- Copy of PAN card of NGO
- N.O.C. from Landlord where registered office is situated
- Electricity bill / House tax Receipt /Water Bill (photocopy)
- Social welfare activities carried out by the NGO and Progress Report as the evidence since inception to application date or last 3 years if NGO is more than 3 years at the time of application
- Books of Accounts, Audit Report, Balance Sheet and ITR (if any) since inception or last 3 years
- List of donors along with their address and PAN cards.
- List of Governing body/Board of Trustees with their contact details
- Original Registration Certificate and MOA /Trust Deed for verification (Have to provide when it is required by the Income Tax Authority)
- Authority letter in favor of Chief Functionary of NGO
- Any other documents, proof of activities performed and affidavit / undertaking information that are asked by the Income Tax department after submitting the application for Registration when required.
The duly filled application form will be then submitted by us to the Income department of respective state. The concerned NGO then receives the notice for clarification which is received two or three months after the submission. The relevant reply to the clarifications is to be submitted to the Income Tax department by the associate consultant along with the supporting documents. The associate consultant is to visit the department personally to follow up the application status until the exemption certificate is issued to them. For all these purposes constant follow up with the Income Tax department is essential. Chanakya will take care of all this.
So if you stay anywhere in India you can definitely shoulder this work and Chanakya will get you the Income Tax Exemption Registration Certificate. As this is valid for 5 years so no more tension or bugging for you and you are free from filing tax returns during its validity tenure. Associated consultants of Chanakya team complete the application form for 12 AA and submit it with the supporting documents that are required for the clarification part. You can jolly well give this responsibility to Chanakya team and be rest assured that your work would be done in the time that is maximum required. Our consultants will also help you in any other regard that is related to the 12A registration.
80 G Registration
Chanakya NGO Consultancy provides Consultancy service for Income Tax Exemption Registration Certificate for NGO under section 80G of Income Tax Act to get benefit of Tax rebate to the donors who contribute donation to NGO. An organization can get itself after registered under much needed Section 80G to avail Income Tax rebate benefits for donors. This tax exemption registration helps an organization by attracting donors by enabling an Income Tax Payee to claim deduction for donations made to certain organizations. This deduction depends upon the organization to which the donation is being made and the amount of donation. 100% to 50% of the amount of donation is eligible for deduction under this section. A donor who might be an individual, company, association or organization is entitled to a deduction in the total income when donating some amount to a Non-Profit Organization (NGO). However, the amount donated by a donor, must not exceed ten percent of gross total taxable income of the donor.
The donations must be made in money and the transaction of money should be shown. No other elements like bike, cycle, car or any other physical object in the form of kind donation is to be judged other than money. In case of receipts issued to the donor by a nonprofit organization there must be the number and date of the 80G certificate on it. This indicates the period till which the certificate is valid. To avail benefits under this section the donor must always ask for a stamped receipt from the organization to which you are making a donation. This stamp should carry name of the organization, its PAN number and date. In certain case if the donation is eligible for 100% deduction a form-58 should be taken from the organization.
There are two types of donations which have different benefits under section 80G. Donations to private trusts and to trusts or funds set up by Government are eligible for different deductions. To get Income Tax rebate registration certificate the organization should be registered under the Societies Registration Act 1860 or section 8 (previously section 25) of the Companies Act 1956 or Indian Trust Act 1882 or Devsthan Trust Act of Rajasthan or Maharashtra Trust Act or Bombay Trust Act or Charitable Trust Act or Religious Trust Act or any other Act and Law that is required for registration of charity or Non Profit Non Governmental Organization or religious organization that is required to fulfill the eligible to apply for this.
If the NGO is involved in business activities like Hospital, School, College, University or any other kind of business then the NGO must have separate its business activities from charitable activities. Separate accounts, separate bank accounts and departments have to be kept otherwise the application for registration certificate under 80G will be cancelled. Furthermore, donations received in the charity account should neither be misused nor it can be used for any propose other than the one that was promised. As a proof, strict accounting books for all the transactions have to be maintained. These accounting books are subject to strict scrutiny by the income tax department before granting the certificate of registration. If the trust/ NGO is a part of any religious activity that promotes a religion, caste or creed then it may not be eligible for 80G certification at certain parameters. In certain parameters the religious charitable organization can get the certification for 80G. This registration certificate is valid for five years as per new rules.
Click here to understand more about 80G registration process.
How Chanakya will help you in 80G Registration Certificate:
You need to hand over all the essential documents to us and as the consultancy we will fill up and proceed all the forms for your NGO and apply for 80G registration certification that is applied for five years.
The documents required for 80 G are:
Dully filled in Form-10G for 80G registration
- Copy of Memorandum of Association copy or Trust Deed copy.
- Copy of the Registration Certificate of NGO for identification of and other certificate of there are any available.
- If Trust is registered under Indian Trust Act then the Registration Certificate is the part of the Trust Deed only. No separate Registration of Trust is available or provided for the Trust that is registered under Trust Registration Act 1882.
- PAN card copy of your NGO.
- No Objection Certificate from the House owner where registered office of NGO is located.
- Copy of Electricity Bill or Water Bill or House tax Receipt of the office place house.
- Annual Reports or Evidence proof in reports of social welfare activities carried out by the NGO and Progress Reports since inception or during last 3 years if your NGO is 3 years old or more than that. Annual Reports are required for this.
- Transaction detail in Accounts: Books of Accounts, Balance Sheet, Audit Reports and ITR (if ITR is submitting and available), since startup date or of last 3 years. Bank transaction details.
- Information about Donors’ along with their addresses and PAN card numbers.
- List of members/directors/trustees of Governing body or Executive body and General Body/Board of Directors / Board of Trustees of NGO with their contact details. Copies of Adhar Card, PAN Card and other information is required as detail of the members.
- Authorization letter in favor of Chief Functionary of the organization.
- Any other document required including affidavit or undertaking information when that are asked by the concerned Income Tax Exemption Authority.
- Material evidence proof of the activities programs of the organization if it is to be asked by the concerning Income Tax authority.
Self attested Copies of the documents are required signed by the Chief Functionary of the NGO.
After receiving the required documents and information our consultants prepare the application and fulfill the application form for 80 G. The application form are submitted at the concerned authority/place/website of Income Tax department. After one to three months the NGO can receive a notice for clarifications from the Income Tax department. The maximum time for 80G Registration process approval is 6 months. After submission of application the concerned authority asks certain questions, queries and justification regarding the certification. A proper reply to this notice with all the desired documents should be submitted to the income tax department within stipulated time. Our Consultants follow up the case with Income Tax department on your behalf. After cross checking all the claims and verifying information provided by the applicant, income tax department shall issue the exemption certificate under section 80G.