TAx Exemption

Introduction 

The 12A and 80G certificates are essential for charitable organisations, NGOs, and trusts to avail of tax exemptions and provide tax deductions to their donors. These certificates, granted under the Income Tax Act, help organisations maintain their tax exempt status while encouraging public donations. Understanding the process of downloading these certificates is crucial for seamless compliance. In this guide, we will walk you through the step-by-step procedure to download the 12A and 80G certificates, ensuring that your organisation can easily access these important documents for tax benefits and transparency.

What is 12A Registration?

Charitable organizations, trusts, and NGOs need 12A registration to avoid paying tax on income from their non-profit work. Under Section 12A of the Income Tax Act, this registration lets them claim tax exemption. It also helps them build trust, get donations, and follow tax rules, showing they are genuine charitable groups.

What is 80G Registration?

80G registration under the Income Tax Act, 1961, allows charitable organizations, NGOs, and trusts to offer tax deductions to their donors. Once registered, these organisations can issue donation receipts that individuals or companies can use to claim tax deductions of up to 100% or 50%, depending on the donation and the organisation. This registration encourages donations, helps organisations raise funds, and ensures they comply with Indian tax laws.

What is the purpose of the 12A & 80G Certificates?

The 12A Certificate allows charitable organisations to claim tax-exempt status on income generated from non-profit activities, while the 80G certificate enables organisations to provide tax deductions to donors for their contributions.

• Share the Certificate with Donors: Inform your donors about the 80G certificate so they can claim tax deductions for their donations during tax filing.
• Use the Certificates for Tax Filing and Compliance: Use the 12A certificate for tax exemptions on your organisation’s income and the 80G certificate to issue receipts that help donors claim deductions.