80 G Registration

80G offers a tax deduction for donations to certain prescribed funds and charitable institution

NGO can apply for 80G as early as possible just after the registration of the NGO


An NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The Income Tax Act has certain provisions which offer tax benefits to the "donors". 

All NGO's should avail the advantage of these provisions to attract potential donors. Section 80G is one of such sections. If an NGO gets itself registered under section 80G then the person or the organization making a donation to the NGO will get a deduction of 50% from his/its taxable income.  All institutions are eligible for registration provided they fulfill all the  conditions.

 

FOR APPROVAL UNDER SECTION 80G THE FOLLOWING CONDITIONS ARE TO BE FULFILLED 
 

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.

The Institutions should not spend any income or assets for any purpose other than a charitable purpose.

The Institution should not be for the benefit of any particular religion, community, or caste.

The Institution should maintain regular accounts.

Their expenses on religious activity should not exceed 5% of total income.

The NGO should not have any incomes which are 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

They should submit their income tax return regularly.

BENEFITS TO NGO FOR 80G REGISTRATION
 

NGO Can attract donations from the potential Donors, as the Donor can claim exemption U/s 80G Income Tax Act for the donation made to 80G registered NGO. 

NGO can avail Grants or Funds from Govt./Abroad/ other Agencies.

BENEFIT TO DONOR
 

Donor can claim exemption U/s 80G Income Tax Act.

VALIDITY PERIOD

80G Registration: lifetime

 

     
   
     
   
     
   
     
 
     
   
     
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