Section 12A: Grants income tax exemption to trusts or institutions operating for charitable purposes. Applies to institutions registered before 1996 under Section 12A, while Section 12AA governs registrations post-1996.

Section 80G: Enables donors to claim tax deductions on contributions made to NGOs. Mandatory for NGOs seeking government grants and increased funding opportunities.

Documents Required for Registration under Section 80G and 12AB

Documents for 80G Registration

To obtain an 80G Certificate, trusts or organizations must provide the following documents:

• PAN Card: Valid PAN card of the trust or organization.
• List of Donors: Comprehensive details of donors contributing to the organization.
• Memorandum of Association (MoA) and Registration Certificate: Verified copies.
• Certificate of Incorporation: Applicable for registered entities.
• No Objection Certificate (NOC): If applicable.
• Financial Documents: Income tax returns, bank statements, and book of accounts for the last three years.
• Form 10G: Duly filled and signed.
• Activity List: A detailed list of welfare and charitable activities undertaken.
• Trust Deed: Mandatory for organizations registered as trusts.
• Utility Bills: Recent copies of utility bills like water, electricity, or house tax receipts.
• Board Details: A complete list of the Board of Trustees or governing members.

Documents Required for 12AB Registration

To secure a 12AA/12AB Certificate, organizations must submit:

• Form 10A: Application form for revalidation/registration.
• PAN Card: Valid PAN card of the organization.
• Incorporation Documents: Trust deed or equivalent documentation.
• Financial Statements: Audited financial statements for the previous three consecutive years.
• Section 8 Companies: Certificate of Incorporation along with MoA and AoA.

What Happens If 85% of Income Is Not Applied?

If an organization fails to apply at least 85% of its income, it can still claim exemptions under certain conditions:

Income Deemed to Be Applied

1. Unreceived Income:
   • If a portion of the income is not received during the financial year, it can be deemed applied for charitable purposes in the year of receipt or the subsequent year.
2. Unspent Income:
   • If income received is not fully utilized for any reason, it can be applied during the following financial year.

To exercise this option, the organization must submit Form 9A electronically within the time allowed for filing returns under Section 139(1).

Accumulation of Income

If neither 85% of income is applied nor deemed applied, the organization may accumulate the unapplied portion under specified conditions and claim exemptions. Proper documentation and adherence to Income Tax provisions are essential.