80G Registration
80G Registration allows NGOs, trusts, and charitable institutions in India to offer tax deductions to their donors under Section 80G of the Income Tax Act, 1961. This encourages donations to registered organizations by reducing the donor’s taxable income.
Key Features of 80G Registration
- Tax Benefits for Donors: Donors can claim tax deductions of 50% or 100% of the donation amount (subject to limits).
- Increased Credibility: Enhances trust and increases donations from individuals and corporates.
- Dual Advantage: NGOs with both 12A and 80G registrations can benefit from tax exemptions while offering tax relief to donors.
Eligibility Criteria
- The organization must have a 12A registration.
- The income and donations of the NGO must be used only for charitable purposes.
- The NGO should not engage in any political or religious activities.
Documents Required for 80G Registration
- Registration Certificate of the NGO (Society/Trust/Company).
- 12A Registration Certificate.
- PAN Card of the NGO.
- Audited Financial Statements for the past 3 years.
- Balance Sheet, Income & Expenditure Account, and Receipts & Payments Account.
- Details of Activities and Beneficiaries.
- Donor List (if available).
- Bank Account Statements of the NGO.
- Declaration from trustees or members stating compliance with eligibility criteria.
Steps to Apply for 80G Registration
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Prepare Documents:
- Ensure all required documents are complete and accurate.
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File Online Application:
- Submit Form 10A (for new registration) or Form 10AB (for renewal) through the Income Tax e-filing portal.
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Attach Documents:
- Upload scanned copies of the documents during the application process.
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Verification by Tax Authorities:
- The Income Tax Department may request additional details or conduct an inspection.
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Grant of Certificate:
- Upon approval, an 80G Certificate is issued, typically valid for 5 years.
Benefits of 80G Registration
- Attracts more donations due to tax benefits for donors.
- Enhances the organization’s credibility and reputation.
- Enables access to CSR (Corporate Social Responsibility) funds.
