80g Registration

NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations.

The Income Tax Act has certain provisions which offer tax benefits to the "donors".

All NGO's should avail the advantage of these provisions to attract potential donors. Section 80G is one of such sections.

If an organization has obtained certification under section 80-G of Income Tax Act then donors of that NGO can claim exemption from Income Tax.

If an NGO gets itself registered under section 80G then the person or the organization making a donation to the NGO will get a deduction of 50% from his/its taxable income

TAX EXEMPTION LIMIT ON DONATIONS?

There is a limit on how much money can be exempted from the Income Tax.* 

  If the amount of deduction to a charitable organisation or trust is more than 10% of the Gross Total Income computed under the Act (as reduced by income on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G.

     The persons or organisation who donate under section 80G gets a deduction of 50% from their taxable income. Here at times a confusion creeps in, that the tax advantage under section 80G is 50%, but actually it is not so. 50% of the donation made is allowed to be deducted from the taxable income and consequently tax is calculated.

The ultimate benefit will depend on the tax rates applicable to the assessee. 

REQUIREMENTS FOR GETTING 80G CERTIFICATE

There are a few conditions that must to be fulfilled if you want to apply for exemption under the section 80g:

  1. NGO should not have any incomes which are not eligible for exemption. For example, business income. lf, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business.
  2. By laws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than the charitable objectives mentioned in the Trust Deep or Rules of Association.
  3. NGO should not be working for the benefit of particular religious community or caste.
  4. NGO maintains regular accounts of its receipts & expenditures.
  5. NGO is properly registered under the Societies Registration Act 1860 or under any law corresponding to that act or is registered under section 25 of the Companies Act 1956 1956 / or Section 8 of Companies Act 2013
  6. Trustees or governing body members are not drawing any undue benefits from NGO funds.

 

  • Basic
  • Preperation Of Documents & Submission Of Application
  • 5000.00
  • Gold
  • Preperation Of Documents, Submission Of Application & Follow Up & Reply To Notices
  • 20000.00
  • Diamond
  • Preperation Of Documents, Submission Of Application & Follow Up & Reply To Noticesattending Hearing
  • 30000.00

Note:






ADVANTAGES

  • The persons or organisation who donate under section 80G gets a deduction of 50% from their taxable income
  • NGO can avail more donations /funds by providing 80G Registration Benefit to Donors

MINIMUM REQUIREMENTS

    Who Can Apply:

    • All Registered NGOs (Society, Trust, Non Profit Company)


DOCUMENT REQUIRED

    • Copy of Registration Certificate
    • Copy of Trust Deed /Bylaws / Memorandum of Association & articles of Association
    • Copy of Pan Card of NGO
    • Office Proof : Copy of Electricity Bill / Tax Receipt /Water
    • NOC from Landlord (where registered office is situated);
    • Activities Reports, Photos, News paper Cutting since inception or last 3 years.
    • Audit Reports & ITR (if any), since inception or last 3years.
    • List of governing body / board of trustees members with their Address, contact details – Attached Format
    • Copy of PAN Card of governing body/ board of trustees members
    • List of donors along with their address and PAN


     

FAQS

Income of an organization is exempted if NGO has 12-A registration. This is one time registration.
If an organization has obtained certification under section 80-G of Income Tax Act then donors of that NGO can claim exemption from Income Tax. Earlier it was not not one time registration and trust were required to get 80G Certificate renewed after validity period. But As per Circular 7/2010 dated 27.10.2010 issued by the CBDT, all Trusts enjoying exemption u/s 80G as on 1.10.2009 and other Trusts obtaining 80G certificate after 1.10.2009 shall continue to hold and enjoy the same for perpetuity unless revoked by the Income Tax Authorities.
Application for registration under section 12A and 80G can be applied just after registration of the NGO.
Yes, Both applications can be applied together or it can be also applied separately. If some organization is willing to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration must for applying application for registration u/s 80G of Income Tax Act
There are few conditions on section 80G. 1) The NGO should not have any Income which is not exempted, such as business income. If the NGO has business income then it should maintain separate books of account and should not divert donations received for the purpose of such business. 2) The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of NGO for the purpose other than charitable. 3) The NGO should not work for the benefit of particular religious community or caste. 4) The NGO should maintain regular accounts of receipt & expenditure. 5) The NGO should properly register under the societies Regulation Act 1860 or under any law corresponding to that Act or should register under section 25 of the Companies Act 1956 or under section 8 of Companies Act 2013
There is a limit on how much money can be exempted from the Income Tax:· If the amount of deduction to a charitable organization or trust is more than 10% of the gross total Income computed under the Act (as reduced by income on which income tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G.· The persons or organizations who donate under section 80G gets a deduction of 50% from their taxable Income

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