NGO Registration

An NGO or non-governmental organization is a not-for-profit citizen-based group that functions independently of government. NGOs, sometimes called civil societies, are organized on community, national and international levels to serve specific social or political purposes, and are cooperative, rather than commercial, in nature.

They typically does work for the welfare work for poorer sections of society or toward a particular cause. Their focus may be environmental, on human or animal rights, improving health and welfare of children, development work or even raising awareness about a particular cause or activity, such as art. NGOs may also be fronts for political or religious interests.

Being not-for-profit, these entities cannot pay out any profits as dividends to members; instead, any profit must be reinvested toward the cause. NGOs raise money from donors, who may or may not receive tax breaks on their donations. In India, an NGO can be set up as a trust, section-8 Company or a society.

While the term “NGO” has various interpretations, it is generally accepted to include private organizations that operate without government control and that are non-profit and non-criminal. Other definitions further clarify NGOs as associations that are non-religious and non-military.

Some NGOs rely primarily on volunteers, while others support a paid staff. As non-profits, NGOs rely on a variety of sources for funding, including membership dues, private donations, the sale of goods and services, and grants. Despite their independence from government, some NGOs rely significantly on government funding.

Obtain 12 A Registration Certificate

Every NGO (trust, society or nonprofit company) is required to get registered with income tax department under income tax act 1961 in order to claim tax exemption for their income. Every NGO should apply for registration from the date of its establishment and get 12A certificate from income tax department. This 12A certificate is known as registration certificate.

Click here for Download Registration form 12A

Conditions as to Registration of Trusts, etc.

The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:-

  • the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12A: Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of section 11 and section 12 shall apply in relation to the income of such trust or institution –
  • from the date of the creation of the trust or the establishment of the institution if the Commissioner is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons;
  • from the 1st day of the financial year in which the application is made, if the Commissioner is not so satisfied;
  • where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds Rs. 50000 in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.
Registration Under Section 80g
Registration Under Section 35ac
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