80G Registration Under Income Tax

Section 80G of the Income Tax Act, 1961 in India provides for deductions on donations made to certain charitable institutions. If you are a non-profit organization or charitable trust and wish to avail tax benefits for your donors, you can apply for 80G registration with the Income Tax Department. Here are the key points to consider:

  1. Eligibility Criteria:

Your organization should be a registered trust or a section 8 company or a specified institution as per the Income Tax Act.

The activities of your organization should be aligned with the objectives specified in the Act.

  1. Documents Required:
  • Copy of the registration certificate of the NGO or trust.
  • Copies of audited accounts and balance sheets for the last three years.
  • Details of activities carried out by the organization since its inception.
  • Copies of the PAN card and address proof of the NGO.
  1. Application Process:
  • Apply in the prescribed form (Form 10G) to the Commissioner of Income Tax.
  • The application should be accompanied by the necessary documents.
  • The Commissioner may send an inquiry report to verify the genuineness of the activities of the NGO.
  1. Approval and Validity:
  • Once satisfied, the Commissioner may grant approval and issue a certificate under section 80G.
  • The approval may be granted for a specific period, and it’s important to renew it as per the prescribed timelines.
  1. Conditions for Approval:
  • The organization must apply income towards its objectives and not distribute profits to its members.
  • The NGO should not be involved in any religious activities or carry on any business for profit.
  1. Disclosure Requirements:
  • The organization needs to maintain regular books of accounts.
  • It should also be ready for scrutiny by income tax authorities.
  1. Communication with Donors:
  • Once the organization receives 80G approval, it should inform donors about the same.
  • Donors can then claim deductions for the donations made to the organization.

It’s important to note that the process and requirements may be subject to changes in the law and regulations. It is advisable to consult with a webetax professional or webetax legal expert to ensure compliance with the latest guidelines from the Income Tax Department.

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