A non-profit organization or non-governmental organization (NGO), a charitable trust or a Section 8 corporation, are qualified to apply for 80G registration as well as getting certification under section 12A. Both the certifications can be applied together and it can also be completed independently. When an NGO requires towards applying for both independently, then, it requires applying for registration u/s 12A, first. Getting 12A certification is a prerequisite towards applying for getting 80G registration as per the Income Tax Act, 1961.
What is Registration under Section 12A?
Any business association, that isn't working for profits, for instance, charitable trust, religious association, Section 8 companies or NGO, can claim a full exemption from income tax. The condition is that these are required to be registered under Section 12A. In this way, it is noteworthy for every single NGO, trusts or association for getting registered under Section 12A immediately after incorporation. In the event that an NGO does not obtain 12A Declaration, it must pay income tax government expense on surplus amid the year. Despite whether the NGO Registration is done as a trust, registered as a society or a Section 8 Company, it is required to look for a 12A certification towards availing the tax exemption.