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12A, 80G & FCRA Registration
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12A, 80G & FCRA Registration

Impeccable application drafting service for Registration.
Due Diligence for NGO operations.
Application for FCRA registration to the Ministry of Home Affairs (MHA).
Exhaustive analysis of Balance sheet for the past three years.
End-to-end follow up for FCRA registration process.

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    FCRA Registration and Registering 12A or 80G – An Overview

    The FCRA department comes under the regulation of MHA (Ministry of Home Affairs). It is deemed optional for trust/NGO/ Section 8 company.

    To regulate the foreign contributions or hospitality received by any company, association, or even an individual, the government consolidated all the regulations and laws related to such transactions. For the same purpose, FCRA or Foreign Contribution (Regulation) Act, 2010 was introduced.

    The FCRA Act is aimed at creating a transparent mechanism for organizations and individuals through e-governance of activities related to FCRA. This would discourage any detrimental activity against the National interest of India.

    NGOs can register through 12A for tax exemption on any surplus funds they own and can also obtain the 80G certification to get the donor’s tax exception. Let us understand the benefits of these registrations.

    Benefits of 12A, 80G, and FCRA Registration

    Registering 12A

    Taxation exemption for income of NGOs.
    Benefits in taking grants from abroad, government, and other agencies.
    Availing benefits of FCRA Registration.

    Registering 80G

    The donor of NGOs with 80G certification can enjoy the benefits of tax exemption on donation.
    It attracts more donations to the NGOs.

    Benefits of FCRA

    Good for Reputation: FCRA registration is always going to help the reputation of the organisations. This also ensures that the NGOs gets transparent fundings from foreign entities.
    Compliance: FCRA registered entities are compliant with the norms for the regulation of foreign funding.
    Support from Government: If an entity is registered under FCRA then it gets ample supports from foreign government head offices and Indian agencies. In case, of any discrepancy related to foreign funds, these companies can easily reach the government to intervene and resolve the issues.
    Foreign Investment: This is self-explanatory as an FCRA registered entity gets ample financial support due to ease of foreign funding.

    Eligibility for FCRA Registration, and Section12A, 80G

    Following entities are not eligible for registration under FCRA:

    Fictitious or Benami entities are not allowed as they are generally created with an intent of fraud. Some of these entities do not exist in the provisions of law and thus are ineligible for registration.
    Applicants indulging in unfair activities which results in criminal convictions are not allowed to apply for the registration.
    Registration for a bankrupt or insolvent entity is not allowed.
    If the funds are used against public interest then the entity would not be allowed to register.
    Any entity that can affect the integrity and sovereignty of India won’t be allowed to register with FCRA.

    Other norms for FCRA registrations:

    The entity should be registered under the Indian Trusts Act, 1882 or
    Under the Societies Registration Act, 1860 or
    Under the Companies Act, 2013 as Section 8 company.

    An organisation should also meet these conditions for FCRA registration:

    The institution must be set up to cater to the charitable causes of serving society in sectors like education, health, art, religion, cultural, etc.
    It must not be prohibited under Section 3 of the FCRA Act, 2010.

    Eligibility for Section 12A and 80 G

    After registration of NGO and application for Section 12A exemptions and 80G certificate can be made immediately. These applications can be filed together or separately with the commissioner of the Income Tax Department who has jurisdiction over the organisation. 

    Section 12A: 

    Only Charitable trusts, religious trusts, Section 8 companies, and Societies can register.
    No private or Family owned trust can register.

    For 80G:

    Charities prescribed under category 80G will have exemptions for the donor.
    NGO must be registered under the Income Tax Act.
    Charities with a business or religious angle won’t be included.

    Process of applying for FCRA registration, Section 12A, 80G

    FCRA Registration: 

    The process for registration is started by filing an online application on Form FC-3.
    Upload all the scanned copies of necessary documents and information ant the time of filing of online form.
    Before the previous steps, an NGO must get a DARPAN ID by registering of the DARPAN portal introduced by the NITI Ayog.

    The long list of documents can become difficult to process and upload for the promoters. At MUDS companies can avail FCRA registration package to get this job done easily without any hassles. Our team ensures that the file is error-free and thus chances of application rejection are reduced. 

    FCRA registration is valid for 5 years from the date of issue of registration under the Income Tax Act. After this, the registration needs to be renewed. For prior permission, the certificate is valid for 5 years or the time till the foreign contribution is fully utilized. 

    Section 12A

    This is a one-time registration process but before applying for tax exemption under this certificate, an NGO must get registered under the Income Tax.
    The application will be made to Income Tax Commissioner with Form 10A. The application must contain the following data:
    Name, PAN details and address of trustees/managers;
    A certified copy of instrument (registration certificate) under which the institution/trust was established.
    A copy of MoA/AoA/Trust Deed as evidence of creation of such institute.
    Copy of NGO’s Pan Card.
    After the application is submitted by the NGO in the format prescribed by the department, the Income Tax Commissioner will verify the details of the application. After successful verification, he will either ask for any other documents to complete the reviewal or if everything is perfect, he will pass the application. An order under the Section 12A of Income Tax Act will be generated for the NGO. The whole process of registration may take up to 3 to 4 months. Once registered the registration certificate is valid for a lifetime.
    For Section 80G:
    The institution must first be registered under Section 12A to apply for Donor’s exemption under 80G.
    The application is made to Income Tax Commissioner under Form 10G.
    Application should be submitted with the required set of documents.
    After receiving the application, the Income Tax Commissioner will verify the application and may ask for some additional documents. On satisfactory review of all the documents and application the Commissioner will issues a written order or registration for the institution under Section 80G of the Income-tax Act. This application takes 3 to 4 months for successful disposal and the certificate is valid for a lifetime.
    Document Required

    Documents Required For Section 12A

    ID proofs of Trustees or managers.
    A certified copy of the instrument (registration certificate) under which the institution/trust was established.
    Address proofs of Trustees/managers.
    A copy of MoA/AoA/Trust Deed as evidence of the creation of such institute.
    Copy of Pan card of Trustees/Managers.
    Copy of NGO’s Pan Card.

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      Documents Required for 80G and FCRA Registration

      FCRA Registration 

      Prior Permission:

      Self-attested copy of Registration certificate or trust deed of the applicant organisation.
      Self-attested copy of the AoA/MoA/Deed showing the main objectives of the NGO.
      Copy of Pan Card of NGO.
      JPG file of Chief Functionary’s signature.
      Copies of Audited liabilities and assets, payment and receipt, the income-expenditure statement form the previous 3 years.
      Duly signed commitment/approval letter of the foreign contributor of the NGO.
      Detail about current and past management of the NGO.
      Copy of Certificate issued by the Income Tax Authority for tax exemptions under Section 12A and donor’s tax exemption under Section 80G.

      For Registration:

      Self-attested copy of Registration certificate or trust deed of the applicant organisation.
      Copy of Pan Card of NGO.
      Self-attested copy of the AoA/MoA/Deed showing the main objectives of the NGO.
      JPG file of Chief Functionary’s signature.
      NGO’s activity report for the previous 3 years.
      Copies of Audited liabilities and assets, payment and receipt, the income-expenditure statement form the previous 3 years.
      Detail about NGO’s current and past management.
      Details of work done by NGO in the past 3 years and its Annual report.
      Copy of the resolution passed by NGO’s governing body.
      Copy of Certificate issued by the Income Tax Authority for tax exemptions under Section 12A and donor’s tax exemption under Section 80G.

      For Section 80G: :

      NOC from the landlord of the registered office of the NGO.
      Copies of NGO’s House Tax, electricity, and water bills.
      Details of welfare activities by NGO in the past 3 years with a progress report.
      ID proofs of Trustees or managers.
      Copies of Audited liabilities and assets, payment and receipt, income-expenditure statement form the previous 3 years.
      List of donors with their PAN and address.
      List of contact details and governing board details of trustees.
      A certified copy of instrument (registration certificate) under which the institution/trust was established.
      A copy of MoA/AoA/Trust Deed as evidence of the creation of such institute.
      Copy of Certificate issued by the Income Tax Authority for tax exemptions under Section 12A or notification issued under Section 10 (23C) or Section 10 (23).

       

      Alternately Call our Legal Expert Now For Free Consultation at 09599653306

      Frequently Asked Questions on 12A, 80G & FCRA Registration

      NGOs receiving or willing to receive foreign funds should get FCRA registration to ensure transparency and support from the government.

      Benefits of Registering 12A

      • Taxation exemption for income of NGOs.
      • Benefits in taking grants from abroad, government, and other agencies.
      • Availing benefits of FCRA Registration.

                   Benefits of Registering 80G

      • The donor of NGOs with 80G certification can enjoy the benefits of tax exemption on donation.
      • It attracts more donations to the NGOs.

      As we have discussed there are two separate ways to receive a foreign contribution, i.e. registration and prior permission. Following are the point of difference is the eligibility criteria.

      For registration: It is required that the applicant

      1. Is in existence for a minimum of 3 years.
      2. Has done reasonable work in the public interest.
      3. Has spent at least Rs.10,00,000/- in the last 3 years for main objectives.

      For Prior Permission: The applicant is not required to be registered for any minimum period as they are in the initial state. No work experience is required. 

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