If an NGO gets itself registered under section 80G then the person or the organisation making a donation to the NGO will get a deduction of 50% from his/its taxable income. The NGO has to apply in Form No. 10G to the Commissioner of Income Tax for such registration.
Requirements for 80G Certificate
There are a few conditions that must to be fulfilled if you want to apply for exemption under the section 80g :
- NGO should not have any income which are not eligible for exemption. For example, business income. lf, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business.
- By laws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than the charitable objectives mentioned in the Trust Deed or Rules of Association.
- NGO should not be working for the benefit of particular religious community or caste.
- NGO maintains regular accounts of its receipts & expenditures.
- NGO is properly registered under the Societies Registration Act 1860 or under any law corresponding to that act or is registered under section 25 of the Companies Act 1956.
- Trustees or governing body members are not drawing any undue benefits from NGO funds.
Documents Required for Registration of 80G Certificate
- Dully filled in Form – 10G for registration u/s 80G registration;
- Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head);
- NOC from landlord (where registered office is situated);
- Copy of PAN card of NGO;
- Electricity Bill / House tax Receipt / Water Bill (photocopy);
- Evidence of welfare activities carried out & Progress Report since inception or last 3 years;
- Annual Reports of last 3years;
- List of donors along with their address and PAN;
- List of governing body I board of trustees members with their contact details;
- Original RC and MOA /Trust Deed for verification;
- Authority letter in favor of NGO Factory;
- Any other document I affidavit / undertaking I information asked by the Income Tax department
- Drafting & preparation of documents for 80G Application.
- Follow up with the department for hearing,
- Preparation of documents for hearing of the case,
- Finalization of case and obtaining order from the department.