80G and 12A Registrations: Process and Procedure

80G and 12A The revalidation of 80G and 12A registrations is an important process for non-profit organizations in India, as these registrations provide tax exemptions and benefits to the organization and its donors. Here are the steps and procedures for revalidating these registrations:

Club Registration

 

  1. Obtain a copy of the current registration certificate: To begin the revalidation process, you need to obtain a copy of your current 80G and/or 12A registration certificate. This certificate contains important details like the registration number, validity period, and other relevant information.

  2. Check the validity period: Once you have the certificate, check the validity period of the registration. Typically, 80G and 12A registrations are valid for a period of 3 years from the date of issue. If your registration is nearing expiration or has already expired, you need to apply for revalidation.

  3. Prepare the necessary documents: To apply for revalidation, you will need to prepare a set of documents, including:

  • A copy of the current registration certificate
  • A copy of the organization’s latest audited financial statements
  • A copy of the organization’s PAN card
  • A copy of the organization’s latest income tax return
  • A copy of the organization’s trust deed or memorandum of association (MOA)
  • A copy of the organization’s by-laws or rules and regulations (if applicable)
  1. Submit the application: Once you have prepared the necessary documents, you need to submit your application for revalidation to the appropriate authority. The application should be made in the prescribed format and should be accompanied by the necessary fees.

  2. Follow up on the application: After submitting the application, you should follow up with the authorities to ensure that your application is being processed. This may involve contacting the relevant department or authority and providing any additional information or documents that may be required.

  3. Receive the updated registration certificate: If your application for revalidation is successful, you will receive an updated 80G and/or 12A registration certificate with a new validity period. You should display this updated certificate prominently in your office and also provide copies to your donors to enable them to avail tax benefits.

In summary, the revalidation process for 80G and 12A registrations involves checking the validity period, preparing the necessary documents, submitting the application, following up on the application, and finally receiving the updated registration certificate. It is important to keep your registrations up-to-date to ensure that your organization and donors can continue to avail the tax benefits associated with these registrations.

Section 12A of the Income Tax Act, 1961

Section 12A of the Income Tax Act, 1961 is a provision that deals with the registration of charitable or religious trusts or institutions. It lays down the conditions that must be satisfied for a trust or institution to be eligible for registration under this section. Once registered, such trusts or institutions become eligible for various tax benefits and exemptions.

To be eligible for registration under Section 12A, the trust or institution must fulfill the following conditions:

  1. It must be a charitable or religious trust or institution.

  2. It must apply its income and property solely for charitable or religious purposes.

  3. It must maintain regular accounts of its income and expenditure.

  4. It must have its accounts audited by a qualified auditor.

  5. It must file its income tax return in accordance with the provisions of the Income Tax Act.

If the trust or institution satisfies all the above conditions, it can apply for registration under Section 12A by filing Form 10A with the Commissioner of Income Tax. Once registered, the trust or institution becomes eligible for tax exemptions under Section 11 of the Income Tax Act, which provides for exemption of income derived from property held for charitable or religious purposes. The registration under Section 12A is generally valid for an indefinite period, subject to the trust or institution continuing to satisfy the conditions laid down in the Act.

Documents Required for Revalidation

  1. A copy of the current registration certificate: This is required to establish that the organization was previously registered and the details of its registration.

  2. A copy of the organization’s latest audited financial statements: This includes the balance sheet, income and expenditure statement, and auditor’s report. This provides evidence of the organization’s financial transactions and compliance with the relevant accounting and auditing standards.

  3. A copy of the organization’s PAN card: This is required for identity verification and compliance with tax regulations.

  4. A copy of the organization’s latest income tax return: This is required to establish the organization’s tax compliance and payment of taxes.

  5. A copy of the organization’s trust deed or memorandum of association (MOA): This is required to establish the legal basis for the organization’s existence, purpose, and governance structure.

  6. A copy of the organization’s by-laws or rules and regulations (if applicable): This is required to establish the internal rules and procedures governing the organization’s operations and decision-making.

These documents help the authorities to assess the organization’s eligibility for revalidation and ensure that it continues to comply with the relevant regulations and standards. It is important to ensure that all the documents are complete and up-to-date to avoid any delays or complications in the revalidation process.