{"id":3455,"date":"2017-09-26T18:33:58","date_gmt":"2017-09-26T13:03:58","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3455"},"modified":"2024-01-03T23:47:51","modified_gmt":"2024-01-03T18:17:51","slug":"corporate-and-professional-update-26-september-2017","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/","title":{"rendered":"New update on section 12ab &#038; 80g registration"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d00bc0182a7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d00bc0182a7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#SECTION_12AB_AND_SECTION_80G_REGISTRATION\" title=\"SECTION 12AB AND SECTION 80G REGISTRATION\">SECTION 12AB AND SECTION 80G REGISTRATION<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#NEW_COMPLIANCES_IN_RESPECT_OF_SECTION_12A_AND_80G\" title=\"NEW COMPLIANCES IN RESPECT OF SECTION 12A AND 80G\">NEW COMPLIANCES IN RESPECT OF SECTION 12A AND 80G<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#NEW_REGISTRATION_PROCESS_OF_SECTION_12AB\" title=\"NEW REGISTRATION PROCESS OF SECTION 12AB\">NEW REGISTRATION PROCESS OF SECTION 12AB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#What_is_Section_12AB\" title=\"What is Section 12AB?\">What is Section 12AB?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#CONDITIONS_FOR_REGISTRATION_SECTION_12AB\" title=\"CONDITIONS FOR REGISTRATION SECTION 12AB\">CONDITIONS FOR REGISTRATION SECTION 12AB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#BENEFITS_FOR_TAKING_SECTION_12AB_REGISTRATION\" title=\"BENEFITS FOR TAKING SECTION 12AB REGISTRATION\">BENEFITS FOR TAKING SECTION 12AB REGISTRATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#DOCUMENTS_REQUIRED_FOR_SECTION_12AB_REGISTRATION\" title=\"DOCUMENTS REQUIRED FOR SECTION 12AB REGISTRATION\">DOCUMENTS REQUIRED FOR SECTION 12AB REGISTRATION<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#What_is_Section_80G\" title=\"What is Section 80G?\">What is Section 80G?<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#CONDITIONS_FOR_REGISTRATION_Us_80G\" title=\"CONDITIONS FOR REGISTRATION U\/s 80G\">CONDITIONS FOR REGISTRATION U\/s 80G<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#BENEFITS_FOR_TAKING_SECTION_80G_5_REGISTRATION\" title=\"BENEFITS FOR TAKING SECTION 80G (5) REGISTRATION\">BENEFITS FOR TAKING SECTION 80G (5) REGISTRATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#DOCUMENTS_REQUIRED_FOR_REGISTRATION_Us_80G\" title=\"DOCUMENTS REQUIRED FOR REGISTRATION U\/s 80G\">DOCUMENTS REQUIRED FOR REGISTRATION U\/s 80G<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#VALIDITY_OF_REGISTRATION_CERTIFICATE_Us_80G\" title=\"VALIDITY OF REGISTRATION CERTIFICATE\u00a0U\/s 80G\">VALIDITY OF REGISTRATION CERTIFICATE\u00a0U\/s 80G<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#SECTION_12AB_UNDER_INCOME_TAX_ACT_1961\" title=\"SECTION 12AB UNDER INCOME TAX\u00a0ACT, 1961\">SECTION 12AB UNDER INCOME TAX\u00a0ACT, 1961<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#APPROPRIATE_AUTHORITY_OF_FILING_FORM_10A\" title=\"APPROPRIATE AUTHORITY OF FILING FORM 10A\">APPROPRIATE AUTHORITY OF FILING FORM 10A<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#PROCEDURE_FOR_REGISTRATION\" title=\"PROCEDURE FOR REGISTRATION\">PROCEDURE FOR REGISTRATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#DOCUMENTS_REQUIRED\" title=\"DOCUMENTS REQUIRED \">DOCUMENTS REQUIRED <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#REGISTRATION_UNDER_SECTION_80G_OF_INCOME_TAX_ACT_1961\" title=\"REGISTRATION UNDER SECTION 80G OF\u00a0INCOME TAX\u00a0ACT, 1961\">REGISTRATION UNDER SECTION 80G OF\u00a0INCOME TAX\u00a0ACT, 1961<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#CONDITION_FOR_ONLINE_REGISTRATION_UNDER_SECTION_80G_5\" title=\"CONDITION FOR ONLINE REGISTRATION UNDER SECTION 80G (5) \">CONDITION FOR ONLINE REGISTRATION UNDER SECTION 80G (5) <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#AFTER_REGISTRATION_COMPLIANCES\" title=\"AFTER REGISTRATION COMPLIANCES\">AFTER REGISTRATION COMPLIANCES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-26-september-2017\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_13391\" aria-describedby=\"caption-attachment-13391\" style=\"width: 1024px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/Section-12A-and-Section-80G-Registrations-Changed-norms1-1024x536-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13391\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/Section-12A-and-Section-80G-Registrations-Changed-norms1-1024x536-1.jpg\" alt=\"Section-12A-and-Section-80G-Registrations-Changed\" width=\"1024\" height=\"474\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/Section-12A-and-Section-80G-Registrations-Changed-norms1-1024x536-1.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/Section-12A-and-Section-80G-Registrations-Changed-norms1-1024x536-1-300x139.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/Section-12A-and-Section-80G-Registrations-Changed-norms1-1024x536-1-768x356.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/Section-12A-and-Section-80G-Registrations-Changed-norms1-1024x536-1-800x370.jpg 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-13391\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Section-12A-and-Section-80G-Registrations-Changed<\/span><\/figcaption><\/figure>\n<h1><span class=\"ez-toc-section\" id=\"SECTION_12AB_AND_SECTION_80G_REGISTRATION\"><\/span><span style=\"color: #ff0000;\"><strong>SECTION 12AB AND SECTION 80G REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"color: #000080;\"><strong>BRIEF INTRODUCTION<\/strong><\/span><\/p>\n<p>Charitable organizations are formed with the objective to serve the poorer section of the society and work towards the encouragement of education, medical relief, preservation of the environment, and preservation of monuments or places or objects of artistic or historic interest, and also towards the advancement of various other objects.<\/p>\n<p>In India, the government has provided various types of exemptions to these Charitable Institutions under Section 80G and Section 12AB of the Income Tax Act, 1961.<\/p>\n<p><span style=\"color: #000080;\"><strong>LATEST UPDATES<\/strong><\/span><\/p>\n<figure id=\"attachment_13394\" aria-describedby=\"caption-attachment-13394\" style=\"width: 1194px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/section-12AB-80G-changes\u2013Implications-and-way-forward..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13394\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/section-12AB-80G-changes\u2013Implications-and-way-forward..jpg\" alt=\"section-12AB-80G-changes\u2013Implications-and-way-forward.\" width=\"1194\" height=\"589\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/section-12AB-80G-changes\u2013Implications-and-way-forward..jpg 1194w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/section-12AB-80G-changes\u2013Implications-and-way-forward.-300x148.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/section-12AB-80G-changes\u2013Implications-and-way-forward.-1024x505.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/section-12AB-80G-changes\u2013Implications-and-way-forward.-768x379.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/09\/section-12AB-80G-changes\u2013Implications-and-way-forward.-800x395.jpg 800w\" sizes=\"(max-width: 1194px) 100vw, 1194px\" \/><\/a><figcaption id=\"caption-attachment-13394\" class=\"wp-caption-text\">section-12AB-80G-changes\u2013Implications-and-way-forward.<\/figcaption><\/figure>\n<ul>\n<li>As per the present situation, CBDT decided to again extend the due date for applying for registration under Section 10(23C), 12AB, 35(1)(ii)\/(iia)\/(iii) and 80G of the Act in Form No. 10A\/ Form No.10AB, for registration\/ provisional registration\/ intimation\/ approval\/ provisional approval of Trusts\/ Institutions\/ Research Associations etc. has been extended till 31st August, 2021 .<\/li>\n<li>Hence now all existing trust need to re-register themselves after 31.08.2021. the choice is claimed to be taken due to this crisis that are prevailing within the country thanks to COVID 19 Pandemic.<\/li>\n<li>They have also introduced certain new compliances under Section 10(23C), 12AB, 35(1)(ii)\/(iia)\/(iii) and 80G of the\u00a0income tax, and the same is expected to be completed latest by 31st August, 2020, being extended till 31st December 2020.<\/li>\n<li>\u00a0Apart from this, the other\u00a0schemes have also been extended to 01.04.2021 and 30th June 2021 respectively.<\/li>\n<li>Now looking in to\u00a0the present\u00a0situation the CBDT has already extended the due date for compliance under Section 10(23C), 12AB, 35(1)(ii)\/(iia)\/(iii) and 80G of the Act in Form No. 10A\/ Form No.10AB, in respect of registration either provisional or final registration.<\/li>\n<li>The said compliances are now to be complied with till 31st August, 2021 and thus, all the existing trust\u00a0would be required to apply for\u00a0re-registration after 31.08.2021.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"NEW_COMPLIANCES_IN_RESPECT_OF_SECTION_12A_AND_80G\"><\/span><span style=\"color: #000080;\"><strong>NEW COMPLIANCES IN RESPECT OF SECTION 12A AND 80G<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As per the new Compliance, being introduced in respect of section 12A and section 12AA, all the NGOs already availing exemption u\/s 12AA of the IT Act will have to\u00a0reapply for\u00a0the same exemption, latest\u00a0by Dec 31, 2020. and will be required to obtain fresh registration u\/s 12AB.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"NEW_REGISTRATION_PROCESS_OF_SECTION_12AB\"><\/span><span style=\"color: #000080;\"><strong>NEW REGISTRATION PROCESS OF SECTION 12AB<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Finance Act, 2020 had inserted\u00a0a replacement\u00a0clause (ac) in section 12A (1) of the\u00a0taxation\u00a0Act, 1961 which\u00a0couldn&#8217;t\u00a0be made effective in\u00a0yr\u00a02020-21\u00a0because of\u00a0Covid-19 situations. The said clause has been made mandatory with effect from 01-04-2021.<\/p>\n<p>Under the section 12A (1) (ac) of the\u00a0Income Tax\u00a0Act, 1961, it was provided that notwithstanding anything contained in clause (a) to (ab), the person being in receipt of the income who intends\u00a0to avail the advantage under\u00a0section 11 &amp; 12, shall file an application in prescribed form to PCIT or CIT for registration of the trust.<\/p>\n<p>In order to get such registration, the applicant is required to file the application in Form No. 10A &amp; 10AB.<\/p>\n<p>In short, wherever, a trust intends\u00a0to avail the\u00a0benefit u\/s 11 &amp; 12, they would be required to make an application in Form No. 10A or 10AB, to PCIT or CIT for registration of trust.<\/p>\n<p>The procedure for registration was earlier\u00a0laid out in\u00a0section 12AA. However, section 12AA has been withdrawn now and section 12AB has now been inserted\u00a0for creating\u00a0effective the registration procedure of trusts.<\/p>\n<p>Thus, all trusts which were earlier registered u\/s 12A or 12AA shall now\u00a0need to\u00a0obtain fresh registration u\/s 12AB.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Section_12AB\"><\/span><span style=\"color: #000080;\"><strong>What is Section 12AB?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Earlier, NGOs tends to take up Registration under Section 12 AA, in order to avail exemption of income earned. It was provided that all the income of an NGO shall not be taxable, after registering under Section 12A.<\/p>\n<p>Where an NGO\u00a0fails to take up section 12A Registration,\u00a0taxation\u00a0is payable on surplus during the year.<\/p>\n<p>However, under the new Compliance, being introduced in respect of section 12A and section 12AA, all the NGOs being presently registered and availing exemption u\/s 12AA of the IT Act, would be required to reapply for registration, latest\u00a0by Dec 31, 2020.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"CONDITIONS_FOR_REGISTRATION_SECTION_12AB\"><\/span><span style=\"color: #000080;\"><strong>CONDITIONS FOR REGISTRATION SECTION 12AB<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>All\u00a0the prevailing\u00a0registered trusts under the section 12A or section 12AA would move to new provision section 12AB.<\/li>\n<\/ol>\n<ol start=\"2\">\n<li>Newly established trusts and institutions applying to\u00a0tax\u00a0for registration for the very first time\u00a0are\u00a0given provisional registration\u00a0for 3\u00a0years.<\/li>\n<li>The provisional registration\u00a0is\u00a0valid\u00a0for 3\u00a0years.<\/li>\n<li>Prior\u00a0to six\u00a0months from the completion of three years provisional registration, an application for renewal of provisional registration or rather registration\u00a0should\u00a0be made.<\/li>\n<li>All the registrations under Section 12A or 12AA once done,\u00a0are\u00a0required to renew their registration at the interval\u00a0of each\u00a05 years.<\/li>\n<li>After processing your application, your trust or institution\u2019s registration under section 12AA and 80G is also re-validated by taxation for a period of 5 years.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"BENEFITS_FOR_TAKING_SECTION_12AB_REGISTRATION\"><\/span><span style=\"color: #000080;\"><strong>BENEFITS FOR TAKING SECTION 12AB REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Income\u00a0of such entity becomes\u00a0exempted from tax liability.<\/li>\n<li>There are benefits in the form of grants, being received from government \/ abroad \/ other agencies.<\/li>\n<li>Benefits in FCRA registration<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"DOCUMENTS_REQUIRED_FOR_SECTION_12AB_REGISTRATION\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTS REQUIRED FOR <\/strong><strong>SECTION 12AB REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Registration document being issued in the name of the said entity.<\/li>\n<li>Copy of PAN card, being issued in the name of the directors\/trustees of the entity.<\/li>\n<li>Copy of Aadhaar Card, being issued in the name of the directors\u00a0\/ trustees of the said entity.<\/li>\n<li>Digital signature\u00a0of any 1\u00a0of\u00a0the directors\u00a0\/ trustees, who is regarded as the authorized signatory of the said entity.<\/li>\n<li>By Laws, being framed for governing the entity\u2019s activities.<\/li>\n<li>Audit reports, made by a CA\/CMA, for all the periods since the inception of the entity.<\/li>\n<li>Audited Financial statements of the said entity, since their inception.<\/li>\n<\/ul>\n<h1><span class=\"ez-toc-section\" id=\"What_is_Section_80G\"><\/span><span style=\"color: #000080;\"><strong>What is Section 80G?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>Section 80G Registration under Section 80G of\u00a0taxation\u00a0Act provides benefits to the donor of an NGO. Once the trust takes registration under this section, their donors will be able to avail some amount of deduction from their taxable income.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"CONDITIONS_FOR_REGISTRATION_Us_80G\"><\/span><span style=\"color: #ff9900;\"><strong>CONDITIONS FOR REGISTRATION U\/s 80G<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>NGO shouldn&#8217;t have any income which aren&#8217;t exempted, like business income. However, where the NGO is also having some business income, then the same would be required to maintain separate books of accounts and shall not be allowed to divert donations received for the such business.<\/li>\n<li>Bylaws or objectives of the NGOs shouldn&#8217;t contain any provision for spending the income or assets of the NGO for purposes apart from charitable purposes.<\/li>\n<li>It shall not work for the good thing about particular religious community or caste.<\/li>\n<li>\u00a0Shall maintain regular accounts of its receipts &amp; expenditures.<\/li>\n<li>Donor-wise details to be maintained\u00a0and every one\u00a0donor will\u00a0need to\u00a0incline\u00a0a certificate.<\/li>\n<li>Tax deductions under section 80G won&#8217;t be available to donors who choose reduced rate of tax.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"BENEFITS_FOR_TAKING_SECTION_80G_5_REGISTRATION\"><\/span><span style=\"color: #000080;\"><strong>BENEFITS FOR TAKING SECTION 80G (5) REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Registration under section 80G (5) of the\u00a0income tax\u00a0Act provides benefits to NGOs.<\/li>\n<li>The NGO has taken 80G (5) certification, their donor would be able to avail some amount of deduction in their taxable income.<\/li>\n<li>Where an NGO gets itself registered under section 80G (5) then the person or the organization making a donation to the NGO will get a deduction\u00a0of 50\u00a0from his\/its taxable income.<\/li>\n<li>By availing 80G (5) Certificate, NGO can attract more donors.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"DOCUMENTS_REQUIRED_FOR_REGISTRATION_Us_80G\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTS REQUIRED <\/strong><strong>FOR REGISTRATION U\/s 80G<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Registration certificate, being issued in the name of the entity.<\/li>\n<li>Details of activities, being undertaken by the entity since their inception.<\/li>\n<li>Digital signature\u00a0of any 1\u00a0of\u00a0the directors\u00a0\/ trustees, who is regarded as the authorized signatory of the said entity.<\/li>\n<li>By Laws, being framed for governing the entity\u2019s activities.<\/li>\n<li>Audit reports, made by a CA\/CMA, for all the periods since the inception of the entity.<\/li>\n<li>The Audited Financial statements of the said entity, since their inception.<\/li>\n<li>Section 12AB Certificate<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"VALIDITY_OF_REGISTRATION_CERTIFICATE_Us_80G\"><\/span><span style=\"color: #000080;\"><strong>VALIDITY OF REGISTRATION CERTIFICATE<\/strong><strong>\u00a0U\/s 80G<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>The Provisional registration\u00a0are going to be\u00a0valid for 3 years from the assessment year from which the registration is sought<\/li>\n<li>Final registration is going to be valid for the amount of 5 years. (According to the primary proviso to sub-section (2) of section 12A the Act, where the appliance is created under 12A(a)(ac)(iii) the provisions of section 11 and 12 shall apply from the primary assessment year that it had been provisionally registered)<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"SECTION_12AB_UNDER_INCOME_TAX_ACT_1961\"><\/span><span style=\"color: #000080;\"><strong>SECTION 12AB UNDER <a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\">INCOME TAX\u00a0ACT<\/a>, 1961<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As a\u00a0result of the above amendment, following effect shall\u00a0happen\u00a0with effect from 1st June 2020: &#8211;<\/p>\n<p>All\u00a0the prevailing\u00a0charitable\u00a0and spiritual\u00a0institutions (including NGOs) which are registered or approved under\u00a0the subsequent\u00a0sections-<\/p>\n<ul>\n<li>Section 12A<\/li>\n<li>Section 12AA<\/li>\n<li>Section 10(23C)<\/li>\n<li>Section 80G<\/li>\n<\/ul>\n<p>are compulsorily required\u00a0to modify\u00a0to section 12AB for fresh registration\u00a0so as\u00a0to continue availing exemption under section 10 or 11,\u00a0because the\u00a0case\u00a0is also.<\/p>\n<p>more updates for related blogs are:<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\">GST Return compliances calendar- Nov 2020<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\">SALIENT FEATURES OF NEW GST SYSTEM IN INDIA<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\">Key points of 42nd GST council Meeting headed By FM N. Sitharaman<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/gstn-enable-details-to-be-auto-populated-in-e-invoice-into-gstr-1\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/gstn-enable-details-to-be-auto-populated-in-e-invoice-into-gstr-1\/\">GSTN enable auto-populated in the E-invoice information into GST Return -1<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/learn\/delayed-in-payment-of-gst-then-intt-to-be-paid-on-net-gst-liability-from-sep-1-2020.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/delayed-in-payment-of-gst-then-intt-to-be-paid-on-net-gst-liability-from-sep-1-2020.html\">Delayed in payment of GST then Intt to be paid on net GST liability from Sep 1, 2020.<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/publications\/effect-of-gst-on-advertising-and-cinema-induatry.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/effect-of-gst-on-advertising-and-cinema-induatry.pdf\">Effect of GST on Advertisement and Cinema Industry<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/publications\/gst-impact-on-import-and-exports.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/gst-impact-on-import-and-exports.pdf\">GST Impact on Import and Export\u00a0<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/gst-impact-on-real-estate\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/gst-impact-on-real-estate\/\">GST Impact on Real Estate\u00a0<\/a><\/strong><\/li>\n<\/ul>\n<p>All the institutions, being registered as trusts under section 10(23C) or section 12AA, will now be required to apply for re-registration under section 12AB.<\/p>\n<p>As a result of which, Section 12AA which prescribes the registration process for the registration Trusts or Institutions will cease to exist and a replacement section 12AB will get force with effect from-<\/p>\n<ol>\n<li>the date of grant of registration under section 12AB or;<\/li>\n<li>the last date by which\u00a0the applying\u00a0for registration and approval is required to be made;<\/li>\n<\/ol>\n<p>whichever is earlier.<\/p>\n<p>The above section shall\u00a0acquire\u00a0effect from 1st June 2020\u00a0and therefore the\u00a0trusts or institutions are required\u00a0to apply for re-registration and approval under section 12AB within 3 months, i.e., from 1st June 2020, till 31st August 2020.<\/p>\n<p>Similarly, charitable trusts and exempt institutions which are availing exemption benefit under section 80G\u00a0will\u00a0now be required\u00a0to use\u00a0for fresh registration under section 12AB by 31st August 2020.<\/p>\n<p>As a\u00a0result of\u00a0the above, the new compliances mentioned under the above sections which were applicable with effect from 1st June 2020 are now deferred\u00a0and can\u00a0be applicable from 1st October 2020 and\u00a0need to\u00a0complied latest by 31st December, 2020.<br \/>\nAlso, a press note was released on 9th May 2020 deferring the implementation\u00a0of latest\u00a0procedure under section 12AB. The press notes in regard of\u00a0the identical\u00a0was released on May 9th 2020.<\/p>\n<h1><span class=\"ez-toc-section\" id=\"APPROPRIATE_AUTHORITY_OF_FILING_FORM_10A\"><\/span><span style=\"color: #000080;\"><strong>APPROPRIATE AUTHORITY OF FILING FORM 10A<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>The application shall be made online by Filing Form 10A\u00a0together with\u00a0the specified\u00a0documents to the Commissioner or Principal Commissioner who shall pass an order granting approval or rejection within three months from date of commencement\u00a0of latest\u00a0provisions, i.e., by 31st August 2020.<\/p>\n<p>Also, where the Commissioner or Principal Commissioner, is satisfied, that the charitable\/religious trusts, in not complying with their objects, being mentioned in their byelaws, shall cancel their registration, after providing a reasonable opportunity of being heard.<\/p>\n<p>Similarly, different time periods have been prescribed in respect of different categories of institutions. These are as follows &#8211;<\/p>\n<table style=\"height: 813px;\" width=\"899\">\n<tbody>\n<tr>\n<td width=\"323\"><span style=\"color: #000080;\">CATEGORY<\/span><\/td>\n<td width=\"329\"><span style=\"color: #000080;\">DUE DATE<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"323\">INSTITUTIONS ALREADY REGISTERED UNDER SECTION 12A OR 12AA OR HAVING SECTION 80G CERTIFICATION.<\/td>\n<td width=\"329\">31<sup>ST<\/sup>\u00a0AUGUST, BEING EXTENDED TO 31<sup>ST<\/sup>\u00a0DECEMBER 2020<\/td>\n<\/tr>\n<tr>\n<td width=\"323\">INSTITUTIONS HAVING REGISTRATION UNDER SECTION 12AB<\/td>\n<td width=\"329\">6 MONTHS BEFORE THE EXPIRY OF THE 5 YEARS FROM THE DATE OF GRANT OF REGISTRATION.<\/td>\n<\/tr>\n<tr>\n<td width=\"323\">INSTITUTIONS HAVING PROVISIONAL REGISTRATIONS UNDER SECTION 12AB<\/td>\n<td width=\"329\">EARLIER OF &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>6 MONTHS BEFORE THE EXPIRY DATE OF PROVISIONAL REGISTRATION<\/p>\n<p>&nbsp;<\/p>\n<p>6 MONTHS FROM THE DATE OF COMMENCEMENT OF BUSINESS ACTIVITIES.<\/td>\n<\/tr>\n<tr>\n<td width=\"323\">INSTITUTIONS UNDERTAKE MODIFICATION OF THEIR OBJECTIVES<\/td>\n<td width=\"329\">WITHIN 30 DAYS FROM THE DATE OF SUCH MODIFICATIONS.<\/td>\n<\/tr>\n<tr>\n<td width=\"323\">IN ANY OTHER CASE<\/td>\n<td width=\"329\">AT LEAST 1 MONTH BEFORE THE COMMENCEMENT OF THE RELEVANT PREVIOUS YEAR.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"PROCEDURE_FOR_REGISTRATION\"><\/span><span style=\"color: #000080;\"><strong>PROCEDURE FOR REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>The applicant would be required to file an online application\u00a0in the form 10A, being available on the income tax\u00a0portal &#8211; incometaxindiaefiling.gov.in.<\/li>\n<li>The form\u00a0is on the market\u00a0on the\u00a0income tax\u00a0website under\u00a0income tax\u00a0Forms Section under e-file menu which is visible after login on\u00a0the web site.<\/li>\n<\/ol>\n<p>Information\/details, required to be furnished in Form 10A are as follows &#8211;<\/p>\n<ul>\n<li>Name of the respective entity.<\/li>\n<li>Details of the PAN card issued in the name of such entity.<\/li>\n<li>Details in respect of the Registered Address of the said entity.<\/li>\n<li>Select\u00a0the sort\u00a0of Trust: &#8211; Religious\/ Charitable\/ Religious-cum-Charitable<\/li>\n<li>Contact details of the authorized person of the entity, including their E-Mail and Mobile number.<\/li>\n<li>Status\u00a0of the Trust<\/li>\n<li>Objects of the Trust<\/li>\n<li>Date on which the entity undertook any Modification of their Objects, if any.<\/li>\n<li>Where an application was made in past and the same was rejected or their registration got cancelled, then the details of the order, being passed in such aspect.<\/li>\n<li>Where the applicant is registered under FCRA, 2010, the details of the registration certificate granted to them.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"DOCUMENTS_REQUIRED\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTS REQUIRED <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Following\u00a0is that the\u00a0list of documents as mentioned on the\u00a0tax\u00a0Website: &#8211;<\/p>\n<ol>\n<li>Where the trust\u00a0is formed, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution;<\/li>\n<li>Where the trust\u00a0is formed, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution;<\/li>\n<li>Self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts,\u00a0because the\u00a0case may be;<\/li>\n<li>Self-certified copy of the documents, providing information in respect of any modification, being made to the objects, if any;<\/li>\n<li>where the trust or institution has been\u00a0living\u00a0during any year or years\u00a0before\u00a0the\u00a0financial year\u00a0within which\u00a0the applying\u00a0for registration\u00a0is created, self-certified copies of the annual accounts of the trust or institution\u00a0regarding\u00a0such prior year or years (not being\u00a0quite\u00a0three years immediately preceding the year\u00a0within which\u00a0the said application is made)\u00a0that\u00a0such accounts\u00a0are\u00a0made up; note on the activities of the trust or institution;<\/li>\n<li>self-certified copy of existing order granting registration under section 12A or section 12AB,\u00a0because the\u00a0case may be; and<\/li>\n<li>self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AB,\u00a0because the\u00a0case\u00a0is also, if any.<\/li>\n<\/ol>\n<p>In simple words,\u00a0we are able to\u00a0say\u00a0the subsequent\u00a0is required for registration<br \/>\nFollowing documents are required from the client and annexed\u00a0to make\u00a010A while registration: &#8211;<\/p>\n<ol>\n<li>Registration Certificate, along with the MOA \/\u00a0Trust Deed of the entity\u00a0(two copies, being self attested by the Managing Trustees)<\/li>\n<li>NOC received from the landlord, in respect of the registered office being situated at a rented place.<\/li>\n<li>Copy of PAN card, being issued in the name of the trust.<\/li>\n<li>Electricity Bill\/ House Tax\/ Water Bill.<\/li>\n<li>Evidence of welfare activities, being undertaken by the entity, along with a written report\u00a0of\u00a0the same, for a period of last 3 years or since their inception.<\/li>\n<li>Books of Accounts,\u00a0record, ITR (if any), for a period of last 3 years of since their inception.<\/li>\n<li>Details in respect of the Donors, along with their PAN details and address proof.<\/li>\n<li>List of\u00a0administration\u00a0or members of the trust\/ Institution\u00a0within the\u00a0following format<\/li>\n<\/ol>\n<table width=\"647\">\n<tbody>\n<tr>\n<td width=\"80\"><span style=\"color: #000080;\">SR. NO.<\/span><\/td>\n<td width=\"92\"><span style=\"color: #000080;\">NAME<\/span><\/td>\n<td width=\"105\"><span style=\"color: #000080;\">ADDRESS<\/span><\/td>\n<td width=\"99\"><span style=\"color: #000080;\">ADHAAR NO.<\/span><\/td>\n<td width=\"85\"><span style=\"color: #000080;\">PAN<\/span><\/td>\n<td width=\"95\"><span style=\"color: #000080;\">MOBILE NO.<\/span><\/td>\n<td width=\"90\"><span style=\"color: #000080;\">EMAIL ID<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ol start=\"9\">\n<li>Trust deed of the Trust, being required for verification of the Original Registration Certificate and MOA of the entity.<\/li>\n<li>Any other information \/ document, as the Income Tax Department, may deem fit to be called.<\/li>\n<\/ol>\n<h1><span class=\"ez-toc-section\" id=\"REGISTRATION_UNDER_SECTION_80G_OF_INCOME_TAX_ACT_1961\"><\/span><span style=\"color: #000080;\"><strong>REGISTRATION UNDER SECTION 80G OF\u00a0INCOME TAX\u00a0ACT, 1961<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>Income tax department has provided many exemptions and tax related benefits\u00a0to those\u00a0NGOs and their donors. For getting tax related benefits these NGOs\u00a0should\u00a0enroll themselves with\u00a0taxation\u00a0department by way of applying under Section-11, 12A, 12AB, 80G etc.<\/p>\n<p>Also, this enrolling process was very cumbersome and time consuming. Now, income tax department provided ease, since the process has become easier and duration for approval from CIT is additionally reduced.<\/p>\n<p>Thus, the approval process is going to be much faster than the earlier one.<\/p>\n<p>As per law, the Income of public trust is exempt per Section 11, 12, 12A, 12AA, 12AB, and 13. the first condition for getting income exempt under this section is that the NGO should be established in accordance with law and its object should fall within the definition of the term \u201cCharitable Purpose\u201d and definition of charitable purpose is given in Section 2(15) of tax Act.<\/p>\n<p>During this article, we&#8217;ll get a glimpse of registration under Section 12AB of tax Act and a detailed discussion of registration under Section 80G of tax Act, 1961<\/p>\n<p>CBDT has issued\u00a0taxation\u00a0(6th Amendment) Rules 2021 vide notification dated 26th March, 2021\u00a0during which\u00a0they need\u00a0enlisted\u00a0the specified\u00a0documents for getting registration under -80G of\u00a0tax\u00a0Act, 1961.<\/p>\n<ul>\n<li>From 01.04.2021, all charitable institutions which are currently registered under section 12A\/12AA are required\u00a0to use\u00a0for a fresh registration under section 12AB. Further, all new entities which want exemption under section 11 and 12, are required\u00a0to use\u00a0for registration under section 12AB.<\/li>\n<li>All existing NGOs (which are registered under section 12A\/12AA) are required\u00a0to induce\u00a0fresh registration U\/s 12AB within 3 Months<\/li>\n<li>All other NGOs, not being registered under Section 12A\/12AA, shall apply for registration U\/s 12AB, at least 1 month\u00a0prior to\u00a0the commencement of the relevant previous year in which they sought to take such registration.<\/li>\n<li>Certain amendment has been made under Section 80G (5) of\u00a0Income tax\u00a0Act, 1961, by passing of Finance Act 2020,\u00a0consistent with\u00a0which, all entities which are currently registered under this section, would be required\u00a0to re-apply for a fresh approval under the amended scheme of Section -80G\u00a0and every new entity which want\u00a0to use\u00a0for fresh registration under this section are required\u00a0to use\u00a0for approval under the new scheme<\/li>\n<li>As per Rule 11AA, all the institutions requiring donations, would necessarily be required to approval under section 80G(5)(vi).<\/li>\n<\/ul>\n<p>In order to made an application under section 80G(5)(vi), the requisite institution or fund would be required to fill the respective Form &#8211;<\/p>\n<ol>\n<li>In Form No. 10A, where the application is required to be made under the clause (i) or clause (iv) of first proviso to subsection (5) of section 80G to the Principal Commissioner or Commissioner authorized by the Board; or<\/li>\n<li>In Form No. 10AB, where the application is required to be made under the clause (ii) or clause (iii) of first proviso to subsection (5) of section 80G to the Principal Commissioner or Commissioner authorized under the said proviso.<\/li>\n<\/ol>\n<p>The application under sub-rule (1) shall be\u00a0amid\u00a0the subsequent\u00a0documents,\u00a0as needed\u00a0by Form Nos. 10A or 10AB,\u00a0because the\u00a0case\u00a0could also be, namely: \u2014<\/p>\n<ul>\n<li>In case, the applicant\u00a0is incorporated or established under an instrument, then the self-certified copy of that particular instrument.<\/li>\n<li>In case, the applicant\u00a0is incorporated or established other than under an instrument, then the self-certified copy of the document evidencing the establishment of the applicant;<\/li>\n<li>Self-certified copy of registration certificate, being obtained from the Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts.<\/li>\n<li>Self-certified copy of registration certificate, being issued under Foreign Contribution (Regulation) Act, 2010(42 of 2010), where the applicant is registered under this Act;<\/li>\n<li>Self-certified copy of the order, providing for the registration granted under section 80G(5)(vi).<\/li>\n<li>Self-certified copy of order, providing for the rejection of application made under section 80G(5)(vi).<\/li>\n<li>In case, the applicant has been\u00a0breathing\u00a0during any year or years\u00a0before\u00a0the year\u00a0within which\u00a0the liability\u00a0for registration arises, then self-certified copies of the annual accounts of the applicant\u00a0regarding\u00a0such prior year or years (not being\u00a0quite\u00a0three years immediately preceding the year\u00a0within which\u00a0the said application is made)\u00a0that\u00a0such accounts\u00a0are\u00a0made up;<\/li>\n<li>Detailed list of the activities to be undertaken by the applicant.<\/li>\n<li>Once the application is received in Form No.10A, the Principal Commissioner or Commissioner who have been authorized by the Board, shall pass an order in writing granting, providing for approval under Section 80G, in form 10AC and issue a sixteen-digit alphanumeric URN to the applicants making application as per clause (a) of the sub-rule (1).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CONDITION_FOR_ONLINE_REGISTRATION_UNDER_SECTION_80G_5\"><\/span><span style=\"color: #000080;\"><strong>CONDITION FOR ONLINE REGISTRATION UNDER SECTION 80G (5) <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For approval under section 80G (5)\u00a0the subsequent\u00a0conditions mentioned in Section 80G (5) vi are to be fulfilled:<\/p>\n<ul>\n<li>The NGO\u00a0mustn&#8217;t\u00a0have any income which\u00a0don&#8217;t seem to be\u00a0exempted,\u00a0like\u00a0business income. If, the NGO has business income then it should maintain separate books of accounts\u00a0and may\u00a0not divert donations received for\u00a0the aim\u00a0of such business.<\/li>\n<li>The bylaws or objectives of the NGOs\u00a0shouldn&#8217;t\u00a0contain any provision for spending the income or assets of the NGO for purposes\u00a0apart from\u00a0charitable purposes.<\/li>\n<li>NGO shall not work for the good thing about particular religious community or caste.<\/li>\n<li>The NGO will be required to maintain proper and regular books of accounts of their receipts &amp; expenditures.<\/li>\n<li>Donor-wise details to be maintained\u00a0and every one\u00a0donor will\u00a0should\u00a0tend\u00a0a certificate.<\/li>\n<li>Tax deductions under section 80G won&#8217;t be available to donors who go for reduced rate of tax.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"AFTER_REGISTRATION_COMPLIANCES\"><\/span><span style=\"color: #000080;\"><strong>AFTER REGISTRATION COMPLIANCES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Maintenance of proper books of accounts, as per the format, being prescribed under the law.<\/li>\n<li>Filing of\u00a0tax\u00a0return on and before the respective due date\u00a0and get the books of accounts audited by Chartered Accountant.<\/li>\n<li>Strictly follow\u00a0the rules\u00a0subject to which registration has been granted<\/li>\n<li>Furnishing of required details as per Rule 18AB\u00a0for every\u00a0yr<\/li>\n<li>Issuance of certificate under section 80G, to the donors in the prescribed Form 10 BE.<\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" title=\"NGO Compliance: NGO \u0915\u0948\u0938\u0947 \u092c\u0928\u093e\u092f\u0947, \u0915\u0948\u0938\u0947 \u0930\u091c\u093f\u0938\u094d\u091f\u0930 \u0915\u0930\u0947 | How to register NGO | NGO Registration Process\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/sxgfS6mncN0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n<h3><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><span style=\"color: #000080;\"><strong>CONCLUSION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Registration under the Section 12AB allows the Non-Profit Organization an exemption from tax rates. Failing\u00a0to try to\u00a0will make them applicable for ITR filling.<\/li>\n<li>The 80G section, on\u00a0the opposite\u00a0hand, ensures that\u00a0an individual\u00a0donating to the NGO can deduct\u00a0the quantity\u00a0from their taxable income, which\u00a0ends up in\u00a0more donations.<\/li>\n<li>From 1st October 2020, the new provisions will\u00a0inherit\u00a0effect, as a\u00a0result of\u00a0which each\u00a0trust or Institution which are already\u00a0breathing\u00a0will\u00a0should\u00a0mandatorily renew the certificate granted under section 12A, 12AA, 80G or section 35 within the\u00a0limit\u00a0prescribed which is latest by 31st December 2020.<\/li>\n<li>In case\u00a0of latest\u00a0Trusts or Institutions\u00a0they&#8217;re going to\u00a0should\u00a0apply for registration under section 12AB within the\u00a0closing date\u00a0prescribed.<\/li>\n<li>Similar amendment in registration\/ renewal procedure has also been made in section 80G. Thus,\u00a0the prevailing\u00a0trusts\/ institutions will now\u00a0should\u00a0apply for fresh registration under section 80G\u00a0within the\u00a0same manner as applicable in section 12AB. Such an application will be required to be made in Form No. 10A or 10AB.<\/li>\n<\/ol>\n<p>An important change, being newly introduced is that the trusts or institutions already registered u\/s 80G, will now be required to furnish a press release\u00a0containing details of donations received during the year in Form No. 10BD\u00a0within the\u00a0prescribed manner.<\/p>\n<p>Moreover, the trust or institution will also be required to issue a certificate of donation to their donors in Form No. 10BE.<\/p>\n<p>W:\u00a0<a href=\"https:\/\/carajput.com\/\">www.carajput.com<\/a>\u00a0\u00a0 \u00a0E: <a href=\"https:\/\/carajput.com\/\">singh@carajput.com<\/a> \u00a0 T: 9-555-555-480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SECTION 12AB AND SECTION 80G REGISTRATION BRIEF INTRODUCTION Charitable organizations are formed with the objective to serve the poorer section of the society and work towards the encouragement of education, medical relief, preservation of the environment, and preservation of monuments or places or objects of artistic or historic interest, and also towards the advancement of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110],"tags":[9980],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3455"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3455"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3455\/revisions"}],"predecessor-version":[{"id":25951,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3455\/revisions\/25951"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}