80G registration is obtained by Non-Governmental Organizations (NGOs). They need it to assure their donors about income tax benefits of donation. Section 80G allows donors to deduct their donations from their Gross Total Income. Therefore, it is also known as 80G registration.
The registration takes place according to section 80G (5) (vi) of the Income Tax Act. It is beneficial for both the NGO as well as the donor. For the NGO, it is beneficial because it is able to attract more donors with the promise of tax deductions. It benefits the donors because they are able to reduce their tax liability by donating money.
Conditions for 80G Registration:
For registration under this section, your NGO must fulfil the following conditions.
- It should not have any income from the business.
- It should be either a:
- public charitable trust
- registered society
- university or other recognized educational institute, or
- Government financed institution.
- The rules governing it should not allow the NGO to use its assets or income for any purpose other than charity.
- It should maintain proper records of its receipts as well as its expenditure.
- It should not work for the benefit of a particular caste or religion.
- If it has any business income, it should maintain separate accounts for it. Further, it should not use the donations received by it for such business. It should also issue a certificate to the donor, stating the same.
Documents for 80G Registration
For a smooth and seamless registration process, keep the below documents handy:
- Form 10G, duly filled in.
- Self-attested copies of MOA or trust deed.
- Proof of registered office. For example, a No Objection Certificate (NOC) from the landlord.
- PAN Card of your NGO.
- A copy of utility bills such as water bill, electricity bill or house tax receipts.
- Evidence of welfare activities performed, either since it started or during the last 3 years.
- Books of accounts, Income Tax Returns and the Balance Sheet for last 3 years or since it started.
- List of donors.
- PAN as well as the address of donors.
- Names of trustees and board members.
Fee for 80G Registration
The government fee for registration is Rs. 2000 for urban areas. For rural areas, the fee is Rs. 1000. Moreover, the professional fee will vary as per your needs.
Timeline for Registration under Section 80G
It takes anywhere between 50-80 days to complete the entire process.
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