35AC Registration
35AC Registration was a provision under the Income Tax Act, 1961, that allowed organizations to implement approved projects and offer 100% tax exemptions to donors. This scheme encouraged individuals and corporates to donate generously for social and charitable projects.
Key Features of 35AC Registration
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Tax Benefits:
- Donations to 35AC-approved projects were eligible for 100% tax exemption.
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Specific Projects:
- The scheme applied only to projects approved by the National Committee for Promotion of Social and Economic Welfare.
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Categories of Approved Projects:
- Education, healthcare, rural development, environment, and similar social welfare initiatives.
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Validity:
- Registration was project-specific and granted for a fixed period.
Documents Required for 35AC Registration
- Registration Certificate of the NGO (Trust/Society/Section 8 Company).
- Project Details:
- Description, objectives, and estimated budget.
- Audited Financial Statements:
- Balance Sheet, Income & Expenditure Account, and Receipts & Payments Account for the last 3 years.
- Details of Trustees/Directors:
- Names, addresses, and PAN details.
- Activity Report:
- Comprehensive details of past activities.
Application Process for 35AC Registration (Historical Reference)
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Prepare Proposal:
- Draft a detailed project proposal, including budget and expected outcomes.
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Submit Application:
- Submit the application to the National Committee for Promotion of Social and Economic Welfare.
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Approval by the Committee:
- The committee reviewed the proposal and granted approval.
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Notify Donors:
- Inform potential donors about the tax benefits associated with the approved project.
Current Status of 35AC
- Discontinued: Section 35AC has been phased out, effective from 1st April 2017, as per the amendments in the Finance Act, 2016. NGOs can no longer apply for 35AC registration.
- For tax benefits, NGOs are now advised to focus on CSR Funding, 12A, and 80G registrations.
