12A and 80G Registration Process in Gurgaon
Now you are following the Faceless Assessment era, and the process is entirely online.
- Step 1: Portal Login: Log in to the Income Tax e-filing portal using your NGO's PAN.
- Step 2: Filing Form 10A: Tap on Income Tax Forms and select Form 10A. This is for Provisional Registration (valid for 3 years).
- Step 3: Document Upload: Upload the scanned PDFs of your Trust Deed/MOA and PAN.
- Step 4: Digital Signature (DSC): Submit the form using the Digital Signature of the authorised signatory (usually the Chairman or Director).
- Step 5: Verification: The Commissioner of Income Tax (Exemptions) reviews the application. They may ask for clarifications via the portal.
- Step 6: Issuance: Once satisfied, the department issues a Unique Registration Number (URN).
Government Forms Required for 12A and 80G Registration
- Form 10A: Used for first-time (provisional) registration.
- Form 10AB: Used for converting Provisional to Regular registration (valid for 5 years) or for 12A renewal every 5 years.
- Form 10BD/10BE: These are the annual Statements of Donations; you must file them to ensure your donors receive 80G benefits.
Common Mistakes that lead to Rejection
Based on our study of some rejected applications, here is what usually goes wrong:
- Mismatch in Objectives: If your NGO’s name says Green Earth but your objectives mention running a hospital, the department will reject it.
- Missing Dissolution Clause: Your Trust Deed must state that if the NGO shuts down, the funds will go to another similar NGO, not into the trustees' pockets.
- Incomplete Financials: Uploading blurred bank statements or incomplete audit reports.
- PAN Data Error: The name on your NGO's PAN card must exactly match the name on its registration certificate.
Compliance Requirements After Getting 12A and 80G
Getting the certificate is just the beginning. To keep it, you must:
- Audit: Get your accounts audited if your income exceeds ₹5 lakhs.
- File ITR-7: Even if your tax is zero, you must file your Income Tax Return (ITR-7) every year.
- Donation Statements: File Form 10BD by May 31st every year, listing every donor who gave you money.