Can We Apply 12A and 80G Online?

Starting a non-profit organization in India involves several legal steps, among which obtaining 12A and 80G Registration is crucial. These registrations offer tax benefits to both the NGO and its donors. But can we apply for 12A and 80G Registration online? The short answer is: yes. Thanks to the digital initiatives of the Income Tax Department of India, NGOs and charitable trusts can now apply for these registrations through an online process. This article explores how the online application works, its advantages, and the documents required.

What Is 12A and 80G Registration?

Before we dive into the application process, it’s important to understand what 12A and 80G Registration entails.

12A Registration allows non-profit organizations like NGOs, trusts, and societies to be exempted from paying income tax on their earnings. On the other hand, 80G Registration enables donors to claim deductions on the donations they make to registered organizations. Together, these registrations build credibility and financial efficiency for the NGO while incentivizing more people to donate.

Is Online Application for 12A and 80G Registration Possible?

Yes, as of the new guidelines effective from April 1, 2021, the entire process of applying for 12A and 80G Registration is done online via the Income Tax Department’s e-filing portal. This digital transformation has made the process much simpler, faster, and more transparent for organizations looking to operate legitimately and avail tax exemptions.

Steps to Apply for 12A and 80G Registration Online

1. Register on the Income Tax E-Filing Portal: The first step is to register your NGO or trust on the official Income Tax e-filing portal (https://www.incometax.gov.in). Organizations must obtain a PAN (Permanent Account Number) before starting the application.
2. Prepare Required Documents: Before applying, gather the necessary documents like the PAN card of the organization, registration certificate, audited financials of the last three years, trust deed or MoA & AoA (as applicable), and details of trustees or office bearers.
3. File Form 10A: This form is used for applying for 12A and 80G Registration under the new rules. It must be filled and submitted online with supporting documents.
4. Upload Digital Signature: The form should be digitally signed using a Digital Signature Certificate (DSC) or e-verified using Aadhaar OTP.
5. Verification by Tax Authorities: Once the application is submitted, the concerned Income Tax officer may request additional documents or clarifications. If all goes well, the certificate of registration will be issued digitally.

Documents Required for 12A and 80G Registration

To apply online, you’ll need to upload the following documents:

• PAN card of the trust/NGO
• Certificate of registration (Trust Deed or Society Registration Certificate)
• Audited financial statements of the past three years
• Details of activities undertaken by the organization
• ID and address proof of the trustees or directors
• A brief note on the objectives and activities of the organization

Why Opt for 12A and 80G Registration?

Applying for 12A and 80G Registration online is not just about meeting a legal requirement; it offers several benefits:

1. Tax Exemption: With 12A Registration, your organization’s income becomes exempt from income tax, allowing you to utilize more funds for your cause.
2. Attract More Donors: 80G Registration enables donors to claim deductions of up to 50% of the donation amount under section 80G of the Income Tax Act. This makes your NGO more appealing to potential contributors.
3. Enhanced Credibility: Having both 12A and 80G Registration increases your organization’s credibility with government bodies, grant institutions, and the general public.
4. Eligibility for Government Funding: Government bodies and foreign donors often require 12A and 80G Registration as a pre-condition for providing grants or donations.

Validity and Renewal of 12A and 80G Registration

Under the revised rules, the validity of both registrations is typically for 5 years. Organizations must reapply for renewal at least 6 months before the expiry date. Again, this renewal can be done online, making the process more efficient than ever before.

Common Mistakes to Avoid While Applying Online

• Uploading unclear or incorrect documents
• Not following the updated Form 10A format
• Missing digital verification
• Delay in responding to IT Department notices

These mistakes can delay or even lead to the rejection of your 12A and 80G Registration application.

Conclusion

So, can we apply for 12A and 80G online? Absolutely. The online process for 12A and 80G Registration has revolutionized the way non-profits in India operate. By eliminating the need for physical paperwork and long waiting periods, the government has made it easier for charitable organizations to gain tax exemptions and donor trust.

If you are running or planning to start an NGO, securing your 12A and 80G Registration online should be one of your first priorities. It’s efficient, secure, and opens the door to tax benefits and donor credibility that are essential for the growth of any charitable organization.

Remember, applying for 12A and 80G Registration is no longer a tedious offline process—it’s just a few clicks away.