12A and 80G Renewal of Trust, Society, Section 8 Company

If you run an NGO and have 12A & 80G certificates then this blog is important for you.

Due to budget amendment and subsequent notification no. 19/2021 dated 26/03/2021 issued by CBDT, pertaining to procedure for registration or re-registration of 12A /12AA and 80G registrations of /trust/charitable institutions etc.

All registered NGO’s u/s12A /12AA and 80G have to apply for renewal of 12A /12AA and 80G registrations under Income Tax Department within 3 months from 1st April 2021 till 30th June 2021. 

NGOs that are already APPROVED under Section 12A/12AA and/ or Section 80G as of 01^st April 2021 & all such NGOs who shall be seeking ‘PROVISIONAL REGISTRATIONS’ with the Department shall file their online applications on Form-10A.

For applying 80G Registration form-10G has been done away with online filing of form-10A

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, it is a common Form for both types of registrations applied either Section 12AB and/or Section 80G Registrations.

As per amendment, approval and new registration certificate or renewal certificate shall be granted for a period of five years.

All applications made under the existing rules and are pending before the Principal Commissioner or Commissioner, on which no order has been passed before the 1st day of April 2021, requires filing fresh application on form 10A.

DATE FROM WHICH RENEWAL STARTS :-

From 1st April 2021 the renewal application form 10A is mandatory to be filed for all NGO’s i.e. Trust, section 8 company, society for availing the benefit of section 12A/ 12AB and 80G.

Last date of Application filing is 30^th June 2021.

If renewal application not filed within the timeline, will lead to cancellation of existing 12A and 80G certificates and no condonation/ other opportunity will be allowed in future.

WHAT DOCUMENTS ARE REQUIRED TO RENEW THE 12A AND 80G CERTIFICATES?

• Self-certified copy of the registration certificate
• Self-certified copy of trust deed (in case of public trust)
• Self-certified copy of FCRA Registration Certificate (If any)
• Self-certified copy of existing order granting registration under section 10/12A/12AA/12AB/ 80G
• Self-certified copy of an order of rejection of application for grant of registration under section 12A/12AA/12AB/ 80G (if any)
• NGO Darpan ID and registration detail
• Activity Report since registration or last three years (From FY 2018-19 to 2020-21)
• Self-certified copies of the annual accounts with audit report since registration or last three years (From FY 2018-19 to 2020-21)
• List of governing body/ Trustees/ shareholders/ directors along with their name

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  , address, PAN No., Email & contact no.

• Amount of expenditure incurred for religious activity since registration or last three years (From FY 2018-19 to 2020-21)

WHAT YOU DO AFTER GETTING 80G CERTIFICATES?

All Trust/ Societies/ Section-8 Companies granted Section 80G shall be required to file Online on Form-10BD; an “Annual Statement of Donations received” by 31^st May of each succeeding year immediately following the financial year of donation to be received. It shall be applicable from the FY 2021-2022.

NGO shall be required to issue a “Certificate of Donation” to the Donor on Form-10BE for the amount of Donation given.

WHAT IS THE PROCESS? 

Let us now see the process for the renewal of the registrations.

Step 1: Apply online on Income Tax Portal 

The applicant has to apply for revalidation of 12A and 80G online, at the Income Tax Portal. Log in with your ID and Password

Step 2: Fill in the details correctly 

The online form focuses where your NGO has performed genuine activities or not. Carefully fill-up this very important form with all the true and correct details. 

Step 3: An order is generated 

After successful filing of application form, the department will verify and scrutinize the documents; as it deems fit an order granting the registration will be issued within 3 months from the end of the month of filing application.

All done! Your 12A certificate and 80G deduction are now renewed. Keep in mind; you have to do the same process over and after 5 years.

Now, before ending this blog, let us see briefly, the benefits of 80G and 12A registrations.

ADVANTAGES OF 12A AND 80G RENEWALS

1. After successful registration, your NGO is applicable for tax exemption.
2. You get various grants from the government and other agencies as well.
3. You get the benefits of sections 11 and 12
4. Renewal is to be done online through the Income Tax Portal, which makes it easy to apply without covering 7 seas.
5. If your NGO has a valid 12A certificate and 80G deduction, a person donating can deduct the donation amount from their taxable income, thus more donations to the NGO.

So, now it’s quite clear that what are 12A and 80G certificates, their importance for your NGO, the documents required for the process of revalidation, the process for renewal, the benefits of these registrations, certificates validity and so on.