80G Registration is applicable only to NGO’s and charitable organisations that:-
Have no income being generated from the business
Is either a charitable trust or a registered society
Should not be using their assets or income for any other purpose than charity
Maintains regular book of accounts of their receipts and expenses.
The trustees or the governing body of the organisation are not deriving any undue benefit from these funds
They should not be working to benefit any particular caste or religion
If there is business related income, there should be separate accounts maintained for it. The donations received by the NGO should not be used for such businesses.
80G Registration procedure typically need to be done by an NGO immediately after its incorporation.
What is 80G Certificate?
80G Certificate is issued to a non-profit organisation or non-governmental organisations (NGO), a charitable trust or a Section 8 Company by the Income Tax Department. The objective behind the 80G certificate is to encourage more and more donors to donate funds to such organisations. The benefit that the donor avails by donating to such an NGO is that he gets tax exemption on 50% of his donation as the donor is allowed to deduct their donations from their Gross Total Income. To avail the tax exemption, the donor needs to attach the stamped receipt against the donation that is issued by the NGO – the receipt needs to include the name, date, and PAN of the organisation.
80G Registration Process
80G Registration procedure consists of following steps:
The application for 80G certificate needs to be submitted to the Commissioner of Income Tax (Exemption) in the jurisdictional area of the institution.
Once the form and the required documents for 80G registration are submitted, an on-the-premise inspection is done by the Income Tax department.
The officials might ask for additional documents and evidence that are required to be made available by the institution.
On satisfactory verification and scrutinising of documents and the office of the NGO, the 80G certificate is awarded to the institution by the Commissioner.
Validity: 80G Certificate valid for a lifetime.
Documents Required for 80G Registration
The documents required for 80G registration are as follows:
Registration certificate and MoA in case of Section 8 companies and Societies; Trust Deed in case of a Trust.
No objection certificate from the owner of the property where the registered office of the Institution is located.
PAN card copy of the NGO.
Copy of Utility Bills – Electricity bills, water bills or House Tax Receipt.
Donor list along with their complete address and PAN.
Book of Accounts & Income Tax Return documents, of last three years.
List of welfare activities being carried out & the progress report for last three years.
Detailed list of the board of trustees.
Deed for Verification – Original RC, MOA or Trust Deed.
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