"

What is 80g registration or 80g certificate?

80g registration certificate is a recognition provided by the government to your NGO like trust, society or section 8 company. With this 80g certificate for trust, if any individual or company, makes a donation to your NGO, you can issue an 80g certificate with the name of your NGO and the donor can claim the deduction of the amount paid as a donation to your NGO. If you have a question like how to get an 80g certificate, this 80G registration procedure guide will be helpful to you

Benefits/ advantage of 80g registration

Deduction under section 80g is available on account of any donation made by the donor to specified institutions. Limit of 80g deduction is 100% in some cases and 50% in some. There are some trust, in which donation made is eligible for 100% deduction like

• National defense fund
• PM care fund
• National children fund
• National sports fund

There is a complete list in which 100% deduction is allowed. Further, apart from this 80g exemption list, if any individual made a donation to your 80g approved NGO, he is eligible to claim 50% of the donation made to trust, society or section 8 company having 80g certificate provided deduction limit shall not exceed 10% of adjusted gross total income. I will explain it to you in short with an example.

Mr. Abhinav is a salaried person and his salary is 1800,000 per annum. His income from other sources is 200,000. He don’t have capital gain etc. so now, his total income is 20 lakhs.

Now, he made a 200,000 donation to your 80g approved NGO, he can claim deduction of 50% that is 100,000 and its also less than 10% of gross total income i.e. 20 lakhs. NGO will issue a receipt to donor. Receipt must mention, name, pan, date and donation made by donor.

So, with 80g certificate, your NGO get eligibility to receive donation and issue receipt to donor so that he can avail the exemption.

80g Registration Online or Online apply for 12a and 80g registration

• As per the rule 11aa of income tax rules 1962, application is made online in form 10g for 80g registration. Form will be filed electronically along with required documents with verification by digital signatures of assessee. 80g form name is 10g.
• Principal Commissioner of income tax will assess the application and may ask for additional requirement, documents from applicant and cause inquiry to be made as he/she thinks necessary for the approval of 80 g certificate.
• After completing the additional requirement and answering the questions of the Commissioner, he will record his willingness for approval of NGO in 80g and and grant approval under clause (vi) of subsection (5) of section 80g of income tax.
• Where the principal commissioner of income tax has reason to believe that application made is incomplete, or conditions laid down in section 80g are not fulfilled, he shall record the reasons in writing and reject the application for approval after giving the applicant an opportunity of being heard.
• Time limit for passing an order by Principal commissioner for granting approval under section 80g of income tax act is six month from the end of month in which application is received. In computing the period of six months, if applicant takes time in replying of the queries raised by commissioner, that period shall be excluded.

You may also like- Income From House Property

Documents required for 80g Registration

• MOA and certificate of incorporation in case of section 8 company. Trust deed in case of trust & by laws in case of society.
• No objection certificate from the owner of the property in which registered office of the NGO is situated.
• Pan Card copy of Trust/ Society/Section 8 company.
• Form 10G
• Proof of ownership like electricity bill, House tax receipt or water bill.
• A complete list of donors along with their pan and complete address.
• List of trustees shall be attached in case of trust.
• NGO’s last 3 Income tax returns, Balance sheet, Audit report and books of account in case NGO is in existence for more than 3 year.
• In case NGO exists for less than 3 year, attach all the above documents for that period.
• Social welfare activity record conduct by the NGO and the progress report of last 3 year.
• 12A Certificate in case 80g is applying after 12a approval.

Click here for NGO Registration

Conditions for 80G Registration

• If you are going to apply for 80G registration or 12A Registration, there are many conditions which have to be complied with.
• 80G or 12A approved NGO must not involved in any business activity. They shall not have any income from Business.
• They should either be a Charitable trust, Society or Section 8 company.
• The organization must not use its assets or income for purpose other than charitable activities.
• NGO should not be working for a benefit of a particular caste or religion.

Amendment has been made by Finance act in regard to 80G registration. The Charitable/religious trusts institution etc. shall file an application before the Commissioner or Principle Commissioner within the prescribed time limits to sought registration under Section 80G. Procedure and time limit to file an application for registration under Section 80G is same as the procedure for registration under Section 12AB.

80G Registration Fees

80g registration fees vary from state to state. With Tax Advisory, you can get your 80g Registration online file in just rs.24999/- you can mail or call us for further assistance.

By Arjun Mittal

Founder- Tax Advisory

"