Section 80 G
An 80 G certificate is issued by the Internal Revenue Service to a non-governmental organisation (NGO), such as a charity trust or a Section 8 corporation. The 80 G Certificate is offered to donors who wish to make a financial contribution to a non-profit organisation. In fact, by contributing to such an entity, the donor is entitled to a 50% tax break because the amount is deducted from their Gross Total Income. In order to benefit from the exemption, the donor must also include a signed receipt of the donation. The name of the charity, the date of the donation, and the PAN will all be included on such a receipt.
A charity donation or a donation to a relief fund can be claimed as a tax deduction under section 80G of the income tax act. This clause, however, does not allow for the deduction of any form of contribution. The only donation that qualifies as a deduction is one made to a designated fund.
Any taxpayer, whether an individual, a corporation, a partnership, or another entity, can claim a deduction under this section.
The deduction is only available if the contribution was made in cash or by check or draught. This clause does not allow for a deduction for in-kind contributions.
Section 12A
A tax exemption is provided by Section 12 A of the Internal Revenue Code for income or amounts received by a nonprofit organisation. When a trust/society/section 8 company registers under section 12A of the Income Tax Act, they are eligible for an exemption when filing their income tax return.
Trusts, NGOs, and Section 8 enterprises are all eligible for a one-time tax exemption under Section 12 A of the 1961 Income Tax Act. Organizations that are registered under section 12A are exempt from paying tax on their surplus income. Non-governmental organisations (NGOs) are charitable and non-profit organisations. They do, however, earn money and, if not reported under Section 12A of the Income Tax Act, are required to pay tax at the standard rate.
It can be used in conjunction with each other or independently. If a corporation is willing to file both applications independently, the first application for registration under section 12A should be filed first. To apply for registration under the Income Tax Act of 1961, Section 80G, you must first get a 12A registration.