Section 12A Registration will assist an NGO/ Trust to offer tax exemptions, whereas 80G Registration comes under Section 80G of Income Tax Act, which provides benefits to the donor of NGO/Trust.
What is section 12A?
Section 12A of the Income Tax Act, 1961 allows Charitable Trusts, Societies, Non-Profit Organizations, Religious Institutions, etc., to claim total tax exemption as per sections 11 and 12 of the Income Tax Law. Non-Profit entities are meant for charitable activities, but they have income and which is taxable as per normal rates if not registered under section 12A of the Income Tax Act.
What is section 80G?
Objective of Section 80G is to encourage more donors to donate funds to Non-Profit entities, and which allows their donors to deduct the sum paid as donations by them from their gross total income. In order to get deduction from his income, the donor need to attach 80G Certificate which can be issued only by NGOs registered under Section 80G.
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