80G Regn. Service
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.
FAQ
Who can avail tax savings under 80G?
- A person who makes an eligible donation is entitled to claim tax exemption under 80 G.
- Donations made to listed trust and organizations under income monts 1961 only qualify for deduction u/s 80G
What are the compliance requirement for taking 80G registration.
- The applicant of the 80G registration must comply the following requirements given below:
- -The application can only be made by a public charitable trust, registered society, recognized educational institution or an institution funded by the Government.
- -The trust/institution applying for the certificate must be duly registered under the Societies Registration Act, 1860; or Section 25 of the Companies Act; or Trust Acts 1882.
- -Applicants of the certificate must not represent any religion based or caste and creeds based activity.
- -Entity’s pursuing any other businesses are required to maintain a separate account, so that the donations received are not confused with savings of any other kind.
- -The applicant should have maintained the appropriate annual returns, accounting and book keeping before applying for the certificate.
- The recipient of the certificate must ensure the timely renewal of certificates, so as to receive the eligible tax benefits.
When an NGO is eligible for Government funding?
An NGO gets eligible for Government funding after three years. However, in some exceptional cases, an NGO can get Government funding even after one year if its project gets approved.Do I need to have office property for NGO Registration?
No, you can start an NGO in a leased property as well. You just need a No Objection Certificate (NOC) from the owner of the leased property.What are the Laws associated with NGO Registration?
- NGOs can be registered in India under the subsequent laws-
- Trust Registration under the Indian Trust Act, 1882
- Society Registration under Societies Registration Act, 1860
