Importance of 12a and 80g for charitable organization registration
Registration of charitable organization under section 12a and 80g of income tax act is a milestone step which can boost the credibility of the organization to a considerable extent, reduce operational complexities and strengthen its financial viability. The section 12a is a formal recognition given to charitable organizations that have to operate in the form of tax-exempt charities. Besides creating a legal confirmation as to the nature of the organization being a charitable organization, this registration will also simplify fundraising since it will assure the donors that an organization is legitimate. The organization will be exempted of paying income tax on the donation they will give once an organization has been registered under section 12a and thus through this, more individuals, corporations and other organizations will respond to the call of the donation by giving more. These advantages play a crucial role in increasing the reach and influence of the organization since it will...