To be eligible for Section 12A/80g registration, organisations need to meet specific requirements set by the Income Tax Department:

12A Registration Eligibility Criteria

This section pertains to registering charitable or religious NGOs, enabling them to enjoy tax exemptions on income derived from donations. To qualify for Section 12A registration, an organisation must meet the following criteria:

• Nature of the Organization: Applicable to trusts, societies, or Section 8 companies that are established solely for charitable or religious purposes as defined under Section 2(15) of the Income Tax Act. This includes activities like poverty relief, education, medical relief, environmental preservation, and more.
• Charitable Activities: The organization must actively engage in its stated philanthropic objectives without any profit motives benefiting specific individuals or groups.
• Registration Proof: Must be duly registered as a trust, a society, or a Section 8 company under the relevant laws, with proof required during the application process.
• Income Utilization: All income and assets must be exclusively used for charitable or religious purposes, without any direct or indirect benefit to members or specific individuals.
• Financial Documentation: Proper bookkeeping and documentation must be maintained to reflect accurate financial operations.
• Tax Compliance: Annual tax returns must be filed on time, even with exempt status, to maintain this exemption.
• Political Neutrality: The organisation should not participate in or support political activities, as this can result in the revocation of the 12A status.

80G Registration Eligibility Criteria

This allows donors to claim tax deductions on donations made to eligible non-profit organizations. Eligibility for Section 80G registration includes:

• Nature of Organisation: Must be a non-profit operating as a registered trust, society, or Section 8 company focused on charitable or religious purposes, serving the public interest.
• 12A Registration Requirement: Organizations must already be exempt under Sections 11 and 12, evidenced by a 12A registration.
• Restrictions on Usage of Income: The governing documents must strictly limit the use of funds to charitable purposes only.
• Inclusivity of Beneficiaries: The benefits of the organization should not be restricted to any particular religious community or caste, ensuring a wider societal benefit.
• Regular Accounting: Accurate and regular financial records must be kept to provide transparency and accountability.

Additional Notes:

• Religious Trusts: 12A registration is suitable only for public religious trusts, not for those serving private religious functions.
• Scope of Public Utility Activities: These should not involve commercial activities unless they support the organization's charitable purpose, with such income not exceeding 20% of total receipts in the previous year.

For NGOs to successfully complete the online registration process for 12A and 80G, they must provide a comprehensive set of documents required for 12A and 80G registration that verify their legal registration. Failure to provide these documents could result in the application being considered incomplete and subsequently rejected by the authorities. Below is a detailed list of documents required for 12A and 80G registrations in India.

Here's the list covers the 12A and 80G registration documents required:

• Trust Deed/Society Registration Certificate/Section 8 Company Certificate
• Memorandum of Association and Articles of Association (for Section 8 companies only)
• PAN card of the organization
• Bank account statement of the organization
• Audited accounts of the organization for the last three years
• List of trustees/members/directors of the organization
• List of activities carried out by the organization