Eligibility for 12A and 80G Certification
The eligibility criteria for 12A and 80G certification for nonprofit organizations (NPOs) in India are:
12A certification:The NPO must be registered as a trust or society or a nonprofit company under Section 8 of the Companies Act, 2013.
The NPO's activities must be primarily for charitable or religious purposes.
The NPO's income must be applied for charitable or religious purposes only.
The NPO must maintain proper books of accounts and get them audited annually.
80G certification:The NPO must have 12A certification.
The NPO's activities must be primarily for charitable or religious purposes.
The NPO must not have any income that is not applied for charitable or religious purposes.
The NPO must maintain proper books of accounts and get them audited annually.
The NPO must have a valid PAN (Permanent Account Number) and a bank account.
The NPO must provide donors with a receipt or certificate for their donations.
It is important to note that the eligibility criteria may vary slightly based on the state or jurisdiction where the NPO is registered. NPOs need to carefully review the requirements and fulfill them to be eligible for 12A and 80G certification.
Document required for 12A and 80G Certification
The documents required for 12A and 80G certification for nonprofit organizations (NPOs) in India are:
12A certification:
- Registration certificate of the NPO under the relevant law (e.g., Trust Act, Societies Registration Act, Companies Act).
- Memorandum of Association and Rules and Regulations (in case of a society).
- Trust Deed (in case of a trust).
- Certificate of incorporation and Articles of Association (in case of a Section 8 company).
- PAN (Permanent Account Number) card of the NPO.
- Proof of address of the registered office of the NPO.
- Audited balance sheet and income and expenditure statement for the last three years.
- Original and photocopy of the registration certificate under FCRA (if the NPO has received foreign funds).
80G certification:12A certificate of the NPO.
- PAN (Permanent Account Number) card of the NPO.
- Details of donors who have made donations to the NPO in the last three years.
- Audited balance sheet and income and expenditure statement for the last three years.
- Donation receipts or certificates issued by the NPO to the donors.
- Proof of address of the registered office of the NPO.
- The exact documents required may vary depending on the state or jurisdiction where the NPO is registered. NPOs need to carefully review the requirements and submit the necessary documents to apply for 12A and 80G certification.
Procedure of applying 12A and 80G Certification
The procedure for applying for 12A and 80G certification for nonprofit organizations (NPOs) in India is as follows:
Become registered with the appropriate authorities: Before submitting an application for 12A and 80G certification, the NPO must be registered under the applicable law (such as the Trust Act, Societies Registration Act, or Companies Act).
Prepare the necessary documents: The NPO must prepare the necessary documents required for 12A and 80G certification, such as registration certificate, PAN card, audited financial statements, and proof of address.
Apply to the Commissioner of Income Tax: The Commissioner of Income Tax (Exemptions) of the area in which the NPO is registered must receive an application from the NPO in Form 10A. The application should include all the necessary documents and information about the NPO's activities and finances.
Wait for the verification and inspection: After receiving the application, the Commissioner of Income Tax may verify the NPO's activities and finances and conduct an inspection of its registered office.
Receive the certification: If the NPO fulfills all the eligibility criteria and requirements, it will receive 12A and/or 80G certification from the Commissioner of Income Tax. The certification will be valid for a certain period and may need to be renewed periodically.
The exact procedure may vary slightly based on the state or jurisdiction where the NPO is registered. NPOs need to carefully follow the procedure and provide accurate information and documents to apply for 12A and 80G certification
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