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Can anybody guide me on the procedure to go acquiring an 80 G certificate for an ngo of 3 years' registration to avail tax exemption for donors? - Hire CA : Knowledgebase
Know about the 80G registration process and how to get 80G Certificate and Certificate to get tax exemption for the charitable trusts and societies (NGOs). Income Tax department issues these certificates for tax exemption on donated money. The main role of 80g certification is to encourage the donors who donate funds to the nonprofit NGO organization. That is organization hold this 80g certificate to provide tax exemption to the donors who donate their funds and they will get 10% tax exemption on their Gross total income of an accounting year.
When you apply for 80g you shall check yourself for the fitness of 80g approval under the following factors——
1. If nonprofit NGO organization is under going with any business, then they have to maintain a separate account and should not mix the donations they receive for social cause.
2. Other than charitable cause the organization or its byelaw should not represent any other causes towards spending of such donation amounts or the assets and incomes of the nonprofit NGO organization.
3. The nonprofit NGO organization shall not be able to apply for 80g if it support religion based, caste and creeds based activity.
4. The nonprofit NGO organization should have the qualification of registration which might have been registered under Societies registration act 1860 or registered under section 25 of Companies act 1956.
5. Proper annual returns, accounting, book keeping should be in manner before applying for 80g.
6. If you have already received the 80g certificate, then proper renewal is must to hold such tax benefits.
Income tax department has the power to approve or reject such approval upon disqualification of the nonprofit organization or dissatisfaction found by the department towards the nonprofit NGO organization activities.
