In our dally life we must Listened a word NGO and thought what’s exactly Non-Governmental-Organization or maybe we saw some organizations, clubs or association helping needy people with foods, cloths, medicines, providing education to poor kids treat specially abled people even feeding left alone animals on streets provide them shelter or many more. This is a very small glimpse of what actually non-profit Association do for humanity. Lets take a deep dive and know about NGO’s
Non-Governmental-Organization what’s that?
Non-governmental organizations, or NGO’s, are a Community that do not seek any profit. As previously stated, in the name they have does not belong to the government; rather, they provide things, services, solutions, education for the betterment of Humanity, natural diversity, animal welfare, and so on. With a vision of making this world a better place for everyone.
History of NGO’s in India: –
The sole purpose of non-governmental organizations is to serve humanity and assist people affected by a variety of social issues such as discrimination, illiteracy, hunger, alcohol and drug addiction, dowry, rape crisis and rehabilitation, domestic violence, and hundreds of other issues. India has a long history of volunteering for social causes. It is embed in traditional Indian culture. The first NGO that has registered was established in 1917. Founded by Gangendra Nath Tagore the nephew of Guru Rabindranath Tagore, for the rehabilitation and reestablishment of wavers, Silk handloom industry, and artists of Calcutta now Kolkata. and it is still providing its contributions to their welfare.
Non-Governmental Organization Types
We’ve discussed what NGOs are and their history in India; now let’s look at the different types of NGOs and the differences between them.
- Significant international non-governmental organizations, such as the Red Cross
- An international non-governmental organization (NGO) such as Amnesty International
- Environmental non-governmental organizations (NGOs) that work to improve the environment, such as the Satpuda Foundation.
- Religious international non-governmental organizations (NGOs) that work for the advancement of any specific religion, such as “Aid to the Church in Need”
- Civil Society organizations that work for the welfare of civil society, such as the Rural-Urban Relationship Committee.
- Non-governmental organizations organized by the government, such as the Myanmar Women’s Affairs Federation.
How To Register For A Ngo In India: –
NGO’s require legal registration to build authority and received funds locally but globally. without registration the fund cannot be accepted by the name of trust but on any specific person’s name which can be misused in future. Registration also necessary for getting lifetime tax exemption on received funds.
Here are The Steps Below: –
Steps1: – The applicant must obtain DSC to the proposed directions of a non-governmental organization. Following a DSC, form DIR-3 with the ROC to obtain a DIN.
Documents require: – Identity and address proof – Aadhar card, electricity bill, driver’s license, PAN card, house tax receipt, proof of business address, society’s name, and so on.
Step 2: Following DIR-3 approval, the respective ROC will assign a DIN to the proposed directors.
Step 3: The applicant must then file Form INC-1 with the ROC in order to apply for a company name. A preference of six names can applied for, from which one will be assigned by ROC based on availability.
Documents to be attached to INC-12: Declaration in accordance with Form INC-14 (Declaration from CA).
Declaration in accordance with Form INC-15 Draft Articles of Association (AOA) and Memorandum of Association (MOA) in accordance with Form INC-13 Estimated Income and Expenditure for the Next 3 Years.
Step 4: – Following ROC approval, file Form INC-12 to apply for an NGO license.
Documents to accompany: – INC-12: Declaration, as per Form INC-14 (Declaration from CA) Declaration, as per Form INC-15 Draft Articles of Association (AOA) and Memorandum of Association (MOA), as per Form INC-13 Estimated Income and Expenditure for the Next Three Years
Step 5: – Following the approval of the Form, the NGO license will be issued in Form INC-16.
Step 6: – After Applying the NGO license, the applicant must file SPICE Form 32 with the ROC for incorporation. The ROC issues a Certificate of Incorporation with a unique Corporate Identification Number after reviewing and verifying the documents (CIN).
What is 80G and 12A Certification: –
80G is an certification issued by income tax department of India. nonprofit or charitable organizations the basic idea is to promote those organization and motivate donors to donate into these organizations. Second benefit is the donor get 50% tax privilege. For that donor needs to include the receipt provided by that NGO after donation.
Process For 80G Registration:-
- Form 10G. Registration certificate and Memorandum of Association in the case of Section 8 companies and Societies Trust Deed in the case of a Trust.
- No objection certificate from the owner of the property where the Institution’s registered office is located.
- Copy of the NGO’s PAN card.
- Utility Bill Copies – Electricity bills, water bills, or House Tax Receipt.
- Donor list, including full address and PAN.
- Documents pertaining to the last three years’ books of accounts and income tax returns.
- List of current welfare activities, as well as a three-year progress report. A detailed list of the trustees can be seen.
- Original RC, MoA, or Trust Deed for Verification.
What is 12-A Certification : –
The Indian Income Tax Department issues 12A certification to registered NGO’s, charitable trusts, and religious trusts, which exempts them from taxation on donations for life. Without a 12A registration, all NGOs must pay the same tax rates as other organizations. This certification is valid for life, but it can be dismissed at any time. if the applicant is unable to provide legal documentation and proof, or if they are found guilty of providing illegal support to people of color, or if they become biased toward any particular group or religion.
For Applying 12 Certification: –
- According to Rule 17A of the Income Tax Act of 1962.
- The application must be made on Form-10A.
- The application must be submitted to the Jurisdictional Commissioner of Income Taxes.
- The Commissioner verifies the authenticity of the organization’s activities after receiving the form documents.
- He has the authority to request additional documents and information as he sees fit.
- He will issue a written order for the grant of 12A Registration based on the satisfactory report.
- If the Commissioner is not satisfied, he will reject the application after which the applicant will be given a fair hearing.
- 12A Registration can be cancelled at any time if proof is provided that the organization’s activities are contrary to the institution’s objectives, are not genuine, or benefit a specific religion, caste, or funds.