What Documents Are Required for 12A and 80G Registration of a Section 8 Company?

Section 8 companies in India, which are non-profit organizations established for promoting charitable objectives such as education, poverty relief, and environmental protection, can avail tax exemptions by securing 12A 80G registration under the Income Tax Act, 1961. Obtaining 12A 80G registration not only provides significant tax relief to the organization but also makes donations to the entity eligible for deductions under section 80G for the donors.

In this article, we’ll explore in detail the list of documents required for a Section 8 company to obtain 12A 80G registration, helping you understand the procedural aspects and prepare a successful application.

Understanding 12A 80G Registration

12A 80G registration involves two parts:

1. 12A Registration: Grants income tax exemption to the NGO on its surplus income.
2. 80G Registration: Allows donors to claim deductions for their donations made to the NGO.

Having both registrations is crucial for a Section 8 company to attract donors and ensure compliance with Indian tax laws.

Documents Required for 12A 80G Registration

The process for 12A 80G registration has been standardized and digitized through the Income Tax portal. Below is a comprehensive list of documents a Section 8 company needs to prepare and upload for successful registration:

1. Certificate of Incorporation A copy of the Certificate of Incorporation issued by the Registrar of Companies (RoC) at the time of formation of the Section 8 company. This is mandatory to establish the legal identity of the entity.
2. Memorandum of Association (MOA) and Articles of Association (AOA) A scanned copy of the MOA and AOA of the company that defines its charitable objectives. These documents prove that the Section 8 company is indeed established for not-for-profit purposes.
3. PAN Card of the Section 8 Company The Permanent Account Number (PAN) issued by the Income Tax Department in the name of the company is essential for 12A 80G registration.
4. Audited Financial Statements The financial statements of the company for the last three financial years (if applicable), duly audited by a Chartered Accountant. These documents reflect the financial health and activities of the organization.
5. Details of Key Members A list containing the names, addresses, PAN, contact details, and Designation of the Board Members or Trustees of the Section 8 company.
6. Bank Account Statement A copy of the bank statement for the company’s current account for the past three months. This helps verify that the company is operational and conducting regular transactions.
7. DARPAN ID (If Applicable) If the NGO is registered on the NGO DARPAN portal maintained by NITI Aayog, the DARPAN ID is also required for 12A 80G registration.
8. Activities Report A brief write-up or report on the charitable activities carried out by the Section 8 company during the past year. This helps demonstrate the non-profit’s active contribution to society.
9. Registration Certificate under Other Acts (if any) If the NGO is registered under other laws such as FCRA, Societies Act, or any state-level acts, copies of those registrations may be submitted as additional documentation.
10. Digital Signature Certificate (DSC) The application for 12A 80G registration is submitted online and must be digitally signed by an authorized person using a DSC.

Step-by-Step Filing Process for 12A 80G Registration

Once all required documents are ready, you can begin the online application process:

1. Visit the Income Tax e-filing portal and log in using the company’s PAN credentials.
2. Navigate to “e-File” > “Income Tax Forms” > “File Income Tax Forms.”
3. Select Form 10A for fresh 12A 80G registration.
4. Fill in the form with relevant details such as organizational information, nature of activities, and details of trustees/directors.
5. Upload all the documents listed above in the designated sections.
6. Attach the DSC and submit the form.

Once submitted, the Income Tax Department will review your application and may request clarifications or additional documentation. If everything is in order, the 12A 80G registration certificate will be issued electronically.

Benefits of 12A 80G Registration

Acquiring 12A 80G registration provides several benefits to a Section 8 company:

• Tax Exemption: The organization’s income is exempt from tax.
• Increased Donations: Donors can claim deductions under Section 80G, making your NGO more attractive for contributions.
• Enhanced Credibility: It boosts the trustworthiness and transparency of your organization in the eyes of stakeholders.
• Eligibility for Government Funding: Many grants and CSR donations require the NGO to have 12A 80G registration.

Important Points to Remember

• 12A and 80G registrations are now merged under a common application Form 10A for new applicants.
• These registrations are typically valid for five years and must be renewed.
• Timely filing and maintaining accurate documentation is critical for approval and continued compliance.

Conclusion

For a Section 8 company committed to social impact and sustainability, obtaining 12A 80G registration is a vital legal and financial step. It ensures tax savings, promotes trust among donors, and opens doors to a wider pool of resources and partnerships. By preparing the necessary documents meticulously and understanding the registration process, your organization can achieve its charitable goals more effectively.

If you’re looking for expert assistance with 12A 80G registration, platforms like TaxLegit.com offer comprehensive support to simplify the process.