Renewal Registration of 12AB and 80G_Tax Benefit and Relief

Notification

In exercise of the powers conferred by clauses (i), (ii), (iii) and (iv) of first proviso to clause (23C) of section 10, ninth proviso to clause (23C) of section 10, sub-clauses (i) (ii), (iii), (iv), (v) and (vi) of clause (ac) of sub-section (1) of section 12A, sub-section (3) of section 12AB, first and fifth proviso to sub-section (1) of section 35, sub-section (1A) of section 35 , clauses (i), (ii), (iii) and (iv) of first proviso to sub-section (5) of section 80G, third proviso to sub-section (5) of section 80G and clauses (viii) and (ix) of sub-section (5) of section 80G, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962.

What is Section 12AB?

To claim Section 11 exemption, a trust must be registered under Section 12AB of the Income-tax Act, 1961.
Section 11 of Income Tax Act, 1961.

Section 11 provides exemption for income derived from property held under trust wholly for charitable or religious purposes to the extent such income is applied for charitable or religious purpose in India. However, this exemption shall be subject to certain conditions

According to the new Compliance with regards to section 12A and section 12AA, All NGOs presently having exemption u/s 12AA of the IT Act shall have to reapply for the same by 31st of August 2021 and shall have to obtain new registration under Section 12AB.

What is Section 80G?

Section 80G of the Income Tax Act allows you to claim a deduction for contributions to certain relief funds and charities. However, All donations made under section 80G are not eligible for deductions.

In other words, 80G Registration under Section 80G of Income Tax Act provides benefits to the donor of an NGO. The donor gets financial benefits in his taxable amount of their income.

Form to be used to apply for registration?

A trust is required to apply for registration in Form No. 10A

Document Required to Filing the Form 10A to get Registration under 12AB and 80G.

1. Self Certified Copy of Instrument (MOA / Byelaws / Trust Deed)
2. Self Certified Copy of Registration (Trust / Society / NGO registration certificate)

    

3. Self Certified Copy of 12A and 80G

    

4. Self Certified copy of 3 years Audited Financial Statements

    

5. Details of Trustee / Members / Governing Body Members along with PAN; Mail id and Contact Number.

    

6. Niti Aayog Registration Details such as Registration No., Date of Registration, Date from which Registration is effective.

    

7. FCRA Registration Certificate if any