Section 80G of the Income Tax Act, 1961 allows tax deductions for donations to eligible charitable organizations. An 80G certificate signifies that an organization is recognized by the Income Tax Department, enabling donors to claim deductions on their taxable income.
Brief About 80G Registration
Tax Deductions with 80G Registration Benefits
Section 80G of the Income Tax Act, 1961 is a provision that allows individuals and organizations to claim tax deductions on donations made to eligible charitable organizations. When an organization obtains an 80G certificate, it means that it has been registered and recognized by the Income Tax Department as eligible to receive donations exempt from income tax. Donors who contribute to such organizations can claim deductions on their taxable income, up to a specified limit, based on the amount donated.
| Eligibility Criteria | ||
|---|---|---|
| i | Proper Registration | The organization should be properly registered under the Societies Registration Act of 1860 or any equivalent legislation under Section 8 of the Companies Act of 2013. The organization must be registered as a trust, society, or non-profit company under the relevant laws in India. It should have a valid registration certificate issued by the appropriate authorities. |
| ii | Charitable Objectives | The organization's objectives should not include provisions for utilising its income or assets for purposes other than charitable ones. The organization must engage in activities under the "charitable purposes" definition specified in the Income Tax Act. These purposes include relief of people with low incomes, education, medical relief, preservation of the environment, promotion of art and culture and more. |
| iii | Tax Compliance | The organization must comply with all income tax regulations and maintain proper books of accounts for its income and expenses. It should also submit its audited financial statements to the income tax department. |
| iv | Non-Business Income | The organization should not have any income that is not exempt, such as income derived from business activities. If the NGO does generate business income, it must maintain separate accounting records and ensure that donations received are not used for purposes unrelated to charitable activities. |
| v | Non-Religious Exclusivity | The organization should not work exclusively to benefit any specific religious community or caste. |
| vi | Darpan Portal Registration | Under the revised provisions of Section 80G, it is compulsory for organizations seeking registration or re-validation to provide their registration number obtained from the Darpan portal of Niti Aayog. This requirement also applies when the applicant organization receives or plans to receive grants or assistance from the Central Government or State Government. |
Key Benefits of 80G Registration
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Documents required for 80G Registration
Navigate the complexities of business setup effortlessly with our comprehensive document checklist. From identity verification to legal formalities, we cover all the essentials for a seamless registration process. Count on our expertise to guide you through every step, ensuring compliance and peace of mind as you embark on your entrepreneurial journey.
Documents required for 80G Registration
Navigate the complexities of business setup effortlessly with our comprehensive document checklist. From identity verification to legal formalities, we cover all the essentials for a seamless registration process. Count on our expertise to guide you through every step, ensuring compliance and peace of mind as you embark on your entrepreneurial journey.
- Self-certified copy of the incorporation document of the Trust/Society, whether created through an instrument or otherwise.
- Self-certified copy of the registration certificate issued by the Registrar of Companies, Registrar of Firms and Societies, or Registrar of Public Trusts, depending on the type of organisation.
- Self-certified copy of the registration under the Foreign Contribution Regulation Act (FCRA) if the applicant is registered under this Act.
- Self-certified copy of the existing order granting approval under clause (23C) of section 10.
- For existing entities, copies of the annual accounts for up to three years immediately preceding the year when the application is being made.
- If the entity’s income includes profits and gains from the business as per the provisions of the sub-section (4A) of Section 11: Copies of the annual accounts and audit report as per Section 44AB for the three years immediately preceding the year when the application is made.
- Details of the organisation’s operations since its inception or for the last three years, whichever is shorter.
