12A and 80G Registration Procedure | 12a 80g registration online | NGO/Trust Registration 12A/80G

Summary

This video explains the process of obtaining 12A and ATG registrations under the Income Tax Act of 1961 for charitable organizations. It outlines the benefits, eligibility criteria, required documents, and step-by-step procedures for both registrations. ATG registration allows donors to receive tax deductions on donations, while 12A provides tax exemptions for organizations' charitable income. Additionally, it discusses how to apply online via the Income Tax portal, the necessary supporting documents, and the verification process. The video serves as a guide for non-profit entities seeking these registrations to enhance credibility and access funding.

Takeaways

• 😀 ATG registration under the Income Tax Act 1961 provides tax benefits to donors of NGOs, charitable trusts, or Section 8 companies.
• 😀 Donors can receive tax deductions on donations made to registered entities under Section 80G of the Income Tax Act 1961.
• 😀 ATG registration helps NGOs and charitable organizations attract more donations by offering tax incentives to donors.
• 😀 NGOs with both 12A and ATG registrations are eligible for government funding and foreign contributions.
• 😀 The eligibility process for ATG registration includes ensuring the donations are made for prescribed charitable activities and that the organization is properly registered in India.
• 😀 Documents required for ATG registration include the MoA, registration certificate, utility bills, donor list, tax returns, and a progress report of welfare activities.
• 😀 The ATG registration process involves creating an account on the income tax portal, filling out Form 10A, uploading necessary documents, and completing verification via Aadhar OTP or digital signature.
• 😀 Section 12A registration offers income tax exemption on the income earned by charitable organizations through their charitable activities.
• 😀 NGOs or charitable entities with Section 12A registration can receive government grants and foreign contributions, and also become eligible for FCRA registration.
• 😀 The application process for Section 12A registration is similar to ATG, requiring an online application, submission of required documents, and successful verification by the income tax department.

Q & A

What is ATG registration?

ATG registration under the Income Tax Act 1961 provides benefits to donors of NGOs, charitable trusts, or Section 8 companies. Donors receive financial benefits in the form of tax deductions for their donations.

What are the benefits of obtaining ATG registration?

The benefits include tax deductions for donors, attracting more donations, eligibility for foreign contributions, potential for government funding, and enhanced goodwill for the NGO.

What are the eligibility criteria for obtaining ATG registration?

To be eligible, donations must be made to a charitable organization that undertakes prescribed activities under ATG, and the organization must be duly registered in India.

What documents are required for ATG registration?

Required documents include the MoA and registration certificate (for Section 8 companies, societies, or trusts), a No Objection Certificate from the property owner, PAN card of the entity, utility bills, a donor list with their PAN, income tax returns and financial books for the past three years, and a list of welfare activities carried out.

What is the process for applying for ATG registration?

The process involves creating an account on the income tax portal, filling out Form 10A, uploading the necessary documents, verifying the form using Aadhaar OTP or a digital signature, and submitting it for scrutiny by the income tax department.

What is 12A registration and how does it differ from ATG?

12A registration provides income tax exemptions for charitable organizations on income earned from their charitable activities. While ATG benefits donors with tax deductions, 12A helps the organization itself by exempting its income from taxation.

What are the benefits of obtaining 12A registration?

Benefits include tax exemption on income from charitable activities, eligibility to receive government and foreign grants, and eligibility for FCRA registration.

What documents are needed for 12A registration?

Documents required include incorporation documents, the trust deed or registration certificate and MoA (for trusts or NGOs), bank account statements for the past three years, the PAN card of the entity, and audited financial statements if the entity has been in existence for more than three years.

What is the process for applying for 12A registration?

The process is similar to ATG registration: create an account on the income tax portal, fill out Form 10A, upload necessary documents, verify the application using Aadhaar OTP or a digital signature, and submit it for scrutiny by the income tax department.

Who can apply for ATG and 12A registration?

Non-profit organizations, NGOs, charitable trusts, and Section 8 companies can apply for ATG and 12A registrations, provided they meet the eligibility criteria for each.