Filing income tax ensures adherence to legal requirements, preventing issues with tax authorities.
Proper filing may lead to receiving a tax refund if you've overpaid throughout the year.
It allows you to claim eligible deductions, potentially reducing your taxable income and overall tax liability.
Filing helps in maintaining accurate financial records, which can be useful for future financial planning and audits.
Timely filing helps avoid penalties and interest charges that can accrue from late submissions.
It provides a clear overview of your financial situation, enhancing transparency and aiding in informed financial decisions.
12A registration is a tax exemption status granted to non-profit organizations (NGOs) under the Income Tax Act, allowing them to be exempt from paying income tax on the donations they receive.
80G registration allows donors to claim tax deductions on contributions made to the registered NGO. This means that individuals and businesses can reduce their taxable income based on the amount they donate.
Non-profit organizations like trusts, societies, and Section 8 companies are eligible for 12A and 80G registration, provided they operate for charitable purposes.
Tax Exemption: Organizations are exempt from paying income tax. Attracting Donations: Donors are more likely to contribute if they can claim tax deductions. Credibility: Registration enhances the organization’s credibility.
Applications can be submitted online through the Income Tax Department's e-filing portal. Required documents include the organization's registration certificate, governing documents, and financial statements.
Certificate of registration Memorandum of association or trust deed Financial statements (if applicable) Details of the governing body A list of activities undertaken
80G registration is usually granted for an indefinite period but may need to be renewed if the organization undergoes significant changes.
Yes, if the organization fails to comply with the regulations or does not maintain its charitable activities, the registration can be revoked.
For updates or renewals, organizations must submit relevant documents and a fresh application if there are changes in their structure or activities.
Organizations can accept foreign contributions if they are also registered under the Foreign Contribution (Regulation) Act (FCRA).