Under section 80G presents the laws for tax exemptions on donations and fund spent on the NGOs. You will get the tax exemptions benefits when there is a donation for NGOs. This law would encourage people to donate more fund for NGOs and most of the companies run NGOs to avail this benefit. This blog will explain the key points related to the donations and tax exemptions on that.
Register Under Section 80G -
The organization to be registered under the Section 80G. If the organization is registered under the Section 80G, the person or company making donations to such organizations are eligible to claim the Tax Exemption on the amount they donated. But, there is certain restrictions on how much can exempted from the whole donations are subject to the Income Tax rules under Section 80G. Please read the following sections to learn more about the details.
Conditions on Section 80G -
- The NGO should not have any income which is not exempted, such as business income. If, 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.
- The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than charitable.
- The NGO is not working for the benefit of particular religious community or caste.
- The NGO maintains regular accounts of its receipts & expenditures.
- The 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.
80G Registration Procedure -
The procedure for getting registration under section 80G -
Step-1: Dully filled-in application will be submitted to the Commissioner of Concerning Department.
Step-2: NGO will receive notice for clarifications from Concerning Department in 2-3 months after applying.
Step-3: Reply of notice will be submitted by the consultant (NGO SYSTEM INDIA) along with all relevant desired documents to the Concerning Department.
Step-4: Consultant (NGO SYSTEM INDIA) will personally visit the Concerning Department to follow-up the case on behalf of the applicant organization.
Step-5: 80G Certificate will be issued.
80G Registration is must for various Government & PSU Projects & Donation.
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