Importance of 12A and 80G Registrations in Mumbai for a Charitable Trust or a Charitable Organisation

The Income Tax Act, 1961 has provided certain income tax exemptions to certain charitable organisations or charitable trusts. Such organisations or trusts not operating for profits, like NGOs, charitable trusts, religious organisations, Section 8 companies, are made eligible for certain income tax exemptions. Section 12A and Section 80G of the Income Tax Act, 1961 provide for such income tax exemptions to institutions or you can say organisations established in India which are not operating for making profits but are engaged into either charitable or religious activities. These organisations need to get registered under section 12A and 80G and obtain certificates thereunder to avail of the income tax exemptions, failing which they would not receive such benefits that would otherwise be available after obtaining these certificates. We are listing down some of the Benefits of 12A and 80G registrations in Mumbai for a charitable trust.

Benefits of 12A and 80G Registrations in Mumbai:

  1. Tax Exemption to Charitable Trust:
    The Charitable Trust enjoys the income tax exemption where if they have 12A registration in Mumbai, their income generated will be exempted from paying income tax.

  1. Receive Grants from various government organisations:
    The Charitable Trust who has 12A registrations in Mumbai are eligible for receiving various grants from various government organisations.

  1. Valid Existence Proof for a Charitable Trust:
    The Charitable Trust having 12A Registration in Mumbai is the proof of existence of the Charitable Trust and such proofs are mandatory for availing the above-mentioned government grants and other various schemes.

  1. Income Tax Exemptions available to the Doner:
    The doner is eligible to get income tax exemption us. 80G for the donation they give to such Charitable Trusts holding valid 80G certificates. The qualifying amount of exemption can be 50% or 100% depending upon the nature of activities of such Charitable organisations.

Now, the process to get the 12A and 80G registrations in Mumbai is online and more simplified than before. In order to avail the benefits of 12A and 80G registrations in Mumbai and to give maximum benefits to public at large and those who are needy its advisable for the Charitable Trust to get certificates through 12A and 80G registrations in Mumbai.

For more details, you can contact our Firm, Anam Shaikh & Associates, CA Firm in Mumbai for getting 12A & 80G registrations in Mumbai