12A registration is a one-time registration which is granted by the Income Tax Department to trusts and other not for profit organisations. The purpose of the registration is to be exempted from the payment of income tax. 12A registration is generally applied for immediately after incorporation.
Eligibility for 12A Registration
Under existing rules, trusts, societies and other section 8 companies that are formed to provide benefits to the public such as Charitable Trusts, Religious Trusts, Welfare Societies, etc. are eligible for 12A registration.
The 80 G certification not only provides the donors with a tax exemption on the amount donated (depending upon the annual income of the donor), but also gives tax benefits to the non-profitable organisation. The institution can get an exemption of 10% for the gross income earned through donations and contributions.
Documents required for both registration u/s 12A AND 80G:
Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head); NOC from Landlord (where registered office is situated); Copy of PAN card of NGO/Trust/Institution. Electricity Bill / House tax Receipt /Water Bill (photocopy)
What Is FCRA ?
Foreign contribution regulation Act 1976 or FCRA is a law of government of India which regulates receipt of foreign contributions or aid from outside India to India territories. This is essential to ensure that such aid does not effect political or any other situation in India.
Eligibility for obtaining FCRA Registration
The not-for-profit entity must have also been in existence for a minimum of three years while making the FCRA application and should not have received any foreign contribution prior to that without the Government's approval.