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Introduction to 80G and 12A Certificate and How To Obtain It

 


Introduction to 80G and 12A Certificate

If you are a non-profit organization or a charitable trust, you might be familiar with 80G and 12A certificates. These certificates allow donors to claim tax exemptions on the donations they make to the organization. In this article, we will discuss the importance of the 80G certificate, how to obtain it, the documents required, and the fee involved.

What is an 80G Certificate?

An 80G certificate is a document that allows donors to claim tax deductions on donations made to eligible non-profit organizations or charitable trusts. The certificate is issued by the Income Tax Department, and it is valid for a specific period, usually five years.

What is a 12A Certificate?

A 12A certificate is another document that is issued by the Income Tax Department to non-profit organizations and charitable trusts. This certificate is proof of registration under Section 12A of the Income Tax Act, which exempts the organization from paying income tax on the funds received.

Importance of 80G Certificate

The 80G certificate is a crucial document for any non-profit organization or charitable trust as it allows donors to claim tax deductions on the donations made to them. This certificate assures donors that their contributions will be used for a good cause and also incentivizes them to donate more. This, in turn, helps non-profit organizations to raise funds and continue their work.

How to Obtain an 80G Certificate

Obtaining an 80G certificate is a straightforward process. The organization must apply for it with the Income Tax Department by filling out Form 10G. The application should be accompanied by relevant documents such as a registration certificate, audited financial statements, and a list of activities carried out by the organization.

The application should be submitted to the Commissioner of Income Tax or the Assessing Officer of the area in which the organization is located. Once the application is processed and approved, the certificate will be issued.

Documents Required for 80G Certificate

  • To apply for an 80G certificate, the following documents are required:
  • Registration certificate under the relevant act (such as the Societies Registration Act, 1860 or the Trusts Act, 1950)
  • Audited financial statements for the previous three years
  • A detailed list of activities carried out by the organization
  • PAN card of the organization
  • Copy of the PAN card of the person signing the application

Fee Required for 80G Certificate

The fee for obtaining an 80G certificate varies based on the type of organization. For charitable trusts, the fee is Rs. 500, and for non-profit organizations, it is Rs. 10,000. The fee can be paid through a demand draft or online.

Conclusion

In conclusion, the 80G certificate is an essential document for non-profit organizations and charitable trusts. It helps them raise funds and continue their work by incentivizing donors to contribute more. The process of obtaining the certificate is simple, and the required documents are easy to obtain. If you run a non-profit organization or a charitable trust, it is essential to obtain an 80G certificate to make your organization more attractive to potential donors.
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