35 AC Registration

Section 35AC of Income Tax Act, 1961 is the section which entitles an NGO to receive tax exempt donations. Section 35AC recognition of an NGO empowers it to pass on unlimited deduction to its donor i.e, 100% without any limit as against normal approval u/s 80G of Income Tax Act, 1961 entitles only 50% deduction .

An NGO approved under Section 35AC can easily mobilize foreign contributions as most of agencies abroad require 35AC recognition as pre condition for grant of foreign contribution to Indian organizations.

Section 35AC is available to persons who have income under the head "Income from Business or Profession" but the persons not having income under the head are going to get the deduction under section 80GGA which generally provides for the donation made to these organizations. Here total deduction is available in respect of the amount paid as donation subject to the availability of the Income for claiming deduction as it cannot be carried forward as in case of Section 35AC.

PROJECTS ELIGIBLE TO BE NOTIFIED UNDER SECTION 35 AC ARE:-

Construction and maintenance of drinking water projects in rural areas and in urban slums including installation of pump-sets, digging of wells, tube-wells and laying of pipes for supply of drinking water;

Construction of dwelling units for the economically weaker sections;

Construction of school buildings primarily for children belonging to the economically weaker sections of the society;

Establishment and running of non-conventional and renewable source of energy systems

Construction and maintenance of bridges, public highways and other roads;

Any other programme for uplift of the rural poor or the urban slum dwellers, as the National Committee may consider fit for support;

Promotion of sports;

Pollution control;

Establishment and running of hospitals and medical facilities in rural areas, exclusively for women and children up to 12 years of age etc

THE APPLICATION AND ITS ENCLOSURES

The application is to be made in 2 Sets, written either in Hindi or English.

Details such as name, address and status of applicant, the district/ ward circle where assessed/PAN number.

Audited Balance Sheet, Profit& Loss Account or Income& Expenditure Account for the latest year and two preceding years.

How is it constituted i.e. whether as a trust, society, etc supported by relevant documents like trust deed, rules & regulation, memorandum of association etc. and registration certificate, if any.

Name & Addresses of the persons managing the affairs of the association or institution, including those who left the organization but were managing the affairs of the association or institution during the 3 years preceding the date of application.

If the association or institution is notified under section 10(23)(C) or is approved for the purposes of section 80G, the particulars of such approval granted.

Brief particulars of the activities of the association or institution during 3 years preceding the date of application or since inception if the association or institution is less than 3 years old.

Such other information as the association or institution may like to place before the National Committee.

     
   
     
   
     
   
     
 
     
   
     
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