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80G Registration (NGO Registration)

About of Service

Purpose: 80G registration is a provision under Section 80G of the Income Tax Act, 1961, which allows donors to claim tax deductions on donations made to eligible NGOs. It encourages philanthropy by providing tax incentives to donors and supports the financial sustainability of NGOs.

Eligibility Criteria: NGOs engaged in charitable activities such as relief of the poor, education, medical relief, preservation of the environment, and advancement of any other object of general public utility are eligible to apply for 80G registration. However, certain activities may not be eligible for deduction under this section.

Types of Deduction,:

   - 100% Deduction: Donations to specified funds or institutions may be eligible for 100% deduction without any qualifying limit.

   - 50% Deduction: Donations to other eligible institutions may be eligible for 50% deduction with or without qualifying limits.

Application Process: NGOs seeking 80G registration must apply to the Commissioner of Income Tax (Exemptions) by submitting Form 10G along with necessary documents, including the organization's constitution, registration certificate, audited financial statements, and details of activities.

Assessment by Tax Authorities: The application for 80G registration is assessed by the tax authorities to ensure that the NGO meets the requirements stipulated under Section 80G of the Income Tax Act. This includes verifying the genuineness of the charitable activities and compliance with tax laws.

Issuance of Certificate: If the tax authorities are satisfied with the NGO's eligibility and compliance, they issue a registration certificate under Section 80G. This certificate enables donors to claim tax deductions on their donations to the NGO.

Validity and Renewal: 80G registration is typically granted for a specific period, and NGOs are required to renew their registration periodically to continue availing tax benefits for donors. Renewal is subject to compliance with ongoing reporting and compliance requirements.

Donor Attraction: 80G registration enhances the attractiveness of NGOs to potential donors, as donors can avail tax deductions on their contributions, thereby encouraging philanthropic giving and supporting the financial sustainability of NGOs.

Compliance Requirements: Registered NGOs are required to comply with certain reporting and compliance requirements to maintain their eligibility for 80G registration and ensure transparency and accountability in their operations.

In summary, 80G registration is a valuable mechanism for NGOs to attract donations, support their charitable activities, and promote philanthropy by providing tax incentives to donors. It plays a crucial role in supporting the financial sustainability and impact of NGOs in addressing social, economic, and environmental challenges.

Uses and Benefits
  • Tax Deduction for Donors: The primary scope of 80G registration is to enable donors to claim tax deductions on donations made to registered NGOs. Donors can claim deductions under Section 80G of the Income Tax Act, 1961, for donations made to eligible NGOs.
  • Eligibility Criteria: NGOs engaged in charitable activities such as relief of the poor, education, medical relief, preservation of the environment, and advancement of any other object of general public utility are eligible to apply for 80G registration.
  • Types of Deductions: 80G registration offers different types of deductions based on the nature of the donation: 100% Deduction: Donations to specified funds or institutions are eligible for 100% deduction without any qualifying limit. 50% Deduction: Donations to other eligible institutions are eligible for 50% deduction with or without qualifying limits.
  • Transparency and Accountability: 80G registration requires NGOs to maintain transparent financial records and comply with reporting requirements, ensuring accountability in the utilization of funds and donations.
  • Community Engagement: Registered NGOs can engage with the community and mobilize support for their causes more effectively by offering tax benefits to donors, thereby fostering a culture of giving and social responsibility.

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Charges Structure & Our Scope of Work

Additional Disclosure

  • Detailed Project Information:

    • Provide detailed information about the projects and activities for which donations are solicited, including objectives, beneficiaries, and expected outcomes.

  • Financial Details:

    • Submit audited financial statements for the last three years, including income and expenditure statements, balance sheets, and annual reports.

  • Utilization of Funds:

    • Disclose how funds received through donations are utilized for charitable purposes, ensuring transparency and alignment with the NGO’s objectives.

  • Board Members and Governance:

    • Provide details of board members, trustees, or governing body members, including their names, addresses, occupations, and roles within the organization.

  • Annual Report:

    • Include a copy of the NGO’s annual report, outlining achievements, impact assessment, and future plans.

  • Compliance with Legal Requirements:

    • Certify compliance with all relevant legal and regulatory requirements under Indian law, demonstrating adherence to governance norms.

  • Registration Under Other Acts:

    • Provide details of registration under other relevant acts, such as the Societies Registration Act, Trusts Act, or Section 8 of the Companies Act.

  • Benefits to Donors:

    • Explain how obtaining 80G registration will benefit donors by allowing them to claim tax deductions under Section 80G of the Income Tax Act.

  • Impact Assessment:

    • Provide evidence of the social impact of the NGO’s activities, including testimonials, case studies, or beneficiary stories.

  • Activities Outside India (if applicable):

    • If the NGO operates internationally, disclose details of activities conducted outside India and how they align with charitable objectives.

    • Terms & Conditions

    Documents & Detail Required

    • Covering Letter: A cover letter addressed to the Commissioner of Income Tax (Exemptions) requesting 80G registration for the NGO.

    • Application Form (Form 10G): Duly filled and signed application form for registration under Section 80G of the Income Tax Act, 1961.

    • Memorandum and Articles of Association (MOA and AOA):

      • Copies of the Memorandum of Association (MOA) and Articles of Association (AOA) of the NGO, which outline its objectives and governing rules.

    • Registration Certificate: Copy of the registration certificate of the NGO, issued by the relevant authority (e.g., Registrar of Trusts, Registrar of Societies, etc.).

    • Trust Deed or Constitution: In case of a trust, a copy of the trust deed, and in case of a society, a copy of the society's constitution, establishing the legal framework and objectives of the NGO.

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    OUR REVIEW

    FAQ'S

    What is 80G registration for NGOs?

    80G registration is a provision under Section 80G of the Income Tax Act, 1961, which allows donors to claim tax deductions on donations made to eligible NGOs. It encourages philanthropy by providing tax incentives to donors and supports the financial sustainability of NGOs.

    Who is eligible for 80G registration?

    NGOs engaged in charitable activities such as relief of the poor, education, medical relief, preservation of the environment, and advancement of any other object of general public utility are eligible to apply for 80G registration. However, certain activities may not be eligible for deduction under this section.

    What are the benefits of 80G registration for NGOs?

    The primary benefit is that donors can claim tax deductions on their donations to registered NGOs, thereby reducing their taxable income and tax liability. It also enhances the attractiveness of NGOs to potential donors, supports their financial sustainability, and promotes philanthropy.

    How can an NGO apply for 80G registration?

    NGOs seeking 80G registration must apply to the Commissioner of Income Tax (Exemptions) by submitting Form 10G along with necessary documents, including the organization's constitution, registration certificate, audited financial statements, and details of activities.

    What documents are required for 80G registration?

    The required documents typically include the organization's constitution (Trust Deed or Society Constitution), registration certificate, PAN card, audited financial statements, activity report, bank statements, details of trustees or members, certification from a chartered accountant, and any other supporting documents as required.