The registration under Sections 12A and 80G permits NGOs in India to secure income tax exemptions and draw in tax-deductible contributions. Section 12A facilitates tax savings on the income of an NGO, whereas Section 80G allows donors to receive tax deductions in accordance with the Income Tax Act.
🔹 Section 12A:
Deals with registration of charitable/religious trusts or institutions.
Needed to claim exemption on income under Section 11 and 12.
Without 12A registration, income is taxable even if it is used for charitable purposes.
🔹 Section 80G:
Deals with donations made to charitable institutions.
If an NGO has 80G registration, donors can claim a deduction on the amount donated (usually 50% or 100% of the donation, depending on the NGO’s certification).
Helps the NGO attract more donations since donors get tax benefits.
✅ Summary:
| Feature | 12A Registration | 80G Registration |
|---|---|---|
| Who benefits? | The NGO/trust itself | The donors to the NGO/trust |
| Purpose | To get income tax exemption | To let donors get tax deduction |
| Mandatory? | Yes, for tax exemption | Optional, but helpful to attract donors |
| Applicability | Charitable/religious organizations | NGOs with charitable objectives |
Â