Contact Us For 80G Registration online
A 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 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. The NGO has to apply in form to the Commissioner of Income Tax for such registration.
Earlier registration under 80G was given as one time registration unless any specific restrictions are provided in the registration certificate itself but finance act 2020 has made some substantial changes in registration process and period for which approval will be given.
Any new application for registration made on or after 1st April 2021 (as amended by Finance Act, 2020) shall be approved only for a period of 3 years and thereafter approval for 80G needs to be reapplied at least 6 months prior to the validity period. The subsequent approval shall be valid for five years.
The registration takes place according to section 80G of the Income Tax Act. It is beneficial for both the NGO as well as the donor. For the NGO, it is beneficial because it is able to attract more donors with the promise of tax deductions. It benefits the donors because they are able to reduce their tax liability by donating money.
Conditions for 80G Registration:-
There are some conditions, which are need to fulfill by NGOs, these are some from them please follow.
> It should not have any income from the business.
> The rules governing it should not allow the NGO to use its assets or income for any purpose other than charity.
> It should be registered under public charitable trust, registered society or section8 for charity.
> School, universities or other recognized educational institutions, or Government financed institution.
> It should not work for the benefit of a particular caste or religion it’s object should be for public charity.
> It should maintain proper records of its receipts as well as its expenditure.
> If it has any business income, it should maintain separate accounts for it.
Documents for 80G Registration
For registration of 80G we required some documents so read carefully below points-
> Form 10G, duly filled in.
> Self-attested copies of MOA or trust deed.
> Proof of registered office. For example, a No Objection Certificate (NOC) from the landlord.
> PAN Card of your NGO.
> A copy of utility bills such as water bill, electricity bill or house tax receipts.
> Evidence of welfare activities performed, either since it started or during the last 3 years.
> Books of accounts, Income Tax Returns and the Balance Sheet for last 3 years or since it started.
> List of donors.
> PAN as well as the address of donors.
> Names of trustees and board members.
> Contact Us on – www.lawsathi.com
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