What is 12AB Registration?

Avail Tax Exemption benefit on your NGOs Income

The Income Tax Department grants Section-8 Companies, Trusts, and Other Not-for-Profit Organisations 12AB Certificate, which is a provisional certificate valid for 3 years. Previously, the approval for 12A registration was a tedious and costly process. But, with the introduction of new reforms under this act, a newly registered NGO can now apply for a provisional 12AB registration and can avail benefits such as Tax exemption on the income earned during that fiscal year.

Section 8 Companies, trusts, and non-governmental organisations (NGOs) that have obtained 12A registration are exempt from paying income tax on their surplus income. All non-profit organisations can use the 12AB registration service.

What is 80G Registration?

Give Tax Exemption benefit to your Donors

The Income Tax Department issues an 80G Certificate to a Section 8 Company, Charitable Trust, or a Non-Profit Organisation or Non-Governmental Organisation (NGO). The goal of the 80G certificate is to encourage more people to donate money to charities like these.

The donor benefits from donating to such an NGO in that he receives a tax exemption on 50% of his donation because donations can be deducted from their Gross Total Income. To qualify for the tax exemption, the donor must attach a stamped receipt from the NGO to the donation – the receipt must include the organisation’s name, date, PAN and the 80G Registration Number. The provisional 80G registration will be valid for 3 years.