Steps for Obtaining 80G Certificateby Enterslice ITES Pvt. Ltd. Start and Manage Business
Non-Governmental Organization (NGO) obtains 80G Certificate. Donors must be informed about such income tax benefit on donation. Under this, donors can deduct the donation from Gross Total Income.
This certificate provides a rebate to a donor on donation. Donors are not required to pay tax on 50% of the donation if NGO has obtained 80G Certificate. 80G registration is done as per section 80G (5) (vi) of the Income-tax Act, 1961.
It is not only good for donors but as well as for NGOs as it helps in attracting donors because of tax deductions. It reduces the tax liability of donors.
How to Obtain 80G Certificate for Tax Exemption?
For 80G registration, Form 10G is required to be given at the office of the income tax commissioner having jurisdiction over NGO which can be download from the website of the Income Tax Department.
What will be the validity of 80G Certificate?
Before June 2014, the 80G certificate was issued by the income tax department for a specified period and after the expiry of the prescribed period one had to apply for renewal.
But now authority is issuing an 80G certificate for a lifetime which is not required to be renewed.
What are the conditions for obtaining an 80G Certificate?
Below mentioned conditions must be fulfilled for obtaining an 80G certificate:
· NGO must not have such income which is not eligible for exemption such as business income.
· The main object of the NGO should be a charitable object and not other than that mentioned in the trust deed and its income should only be spent for that purpose.
· Its main object should not be concerned with a particular religious community.
· Regular maintenance of accounts for all receipts and expenditures by NGOs.
· NGO must be registered as the following:
1. Trust or;
2. Society or;
3. Section 8 Company.
· NGOs not taking any undue benefit of funds.
What Are The Documents Required For 80G Certificate?
Below mentioned documents are required for 80G Certificate:
· Duly filled Form — 10G;
· Two copies of Incorporation Certificates such as MOA /Trust Deed which must be self-attested by the head of NGO and original copy for verification;
· Details of donors;
· Address and PAN of donors;
· Details of the board of trustees along with their contact details;
· NOC from the landlord for registered office;
· One copy of NGO’s PAN;
· Copy of Utility bill (Electricity Bill / Water Bill);
· Welfare activities evidence of NGO since incorporation or for past 3 years.
· Books of Accounts and Financials of NGO (Balance Sheet & ITR)from the date of incorporation or for last 3years;
· Letter of authority in favor of NGO;
· Any other document asked by the Income Tax department.
Created on Jan 15th 2019 00:20. Viewed 474 times.