**12A / 80G Compliance Explained
In India, charitable organizations are governed by the Income Tax Act to ensure transparency and proper use of funds. 12A and 80G are two important registrations under this law.
**What is 12A? Registration under Section 12A allows a charitable organization like Baitulmal to claim exemption from income tax on the funds it receives, provided the money is used strictly for charitable purposes.
**What is 80G? Registration under Section 80G allows eligible donors to claim tax deductions on the donations they make to Baitulmal, as per applicable income tax rules.
Why This Matters to Donors Ensures the NGO operates legally and transparently
Confirms that funds are used only for charitable objectives Provides tax benefits to eligible donors Builds trust through audits and proper documentation
**Baitulmal’s Commitment Baitulmal maintains proper books of accounts, follows statutory guidelines, and undergoes audits as required. Compliance details are disclosed honestly, and no false claims regarding tax benefits are made.
12A / 80G compliance means legal transparency, accountability, and donor confidence.