Website :- http://www.80g.co

What is 80g?Section 80g offers a tax

deduction for

donations to certain

prescribed funds and

charitable institutions.

Benefits of 80gThose organizations who donate to NGO under section 80g, they get deduction of 50% in their tax.

Eligible Assesses for 80gThis section is applicable to all Ngo, who make an eligible donation, whether an individual, HUF, NRI or a company.

Applying for 12a Certification

 shall ensure the acceptance of the organization by Income Tax department. After getting the 12a certification the Ngo organization gets the perfect legal entity.  The entire tax of ngo is exempted.

Apply for 80g certificationBy showing their record of achievements in social welfare activities and by proving their service to the public. By getting this 80g certification, organization are privileged to provide tax exemption to the donors who donates their organization.

That is when an organization receives donation from public, individual or from a group it shall issue 80g tax exemption to the donor, where donors are entitled to donate from their 10% of gross total annual income. In that 10% of their donation, donors shall receive 10% tax exemption for their donation. So this type of certification, gives the power to the organization to encourage their donation to donate more .

What is the validity period of the registration under section 12A and 80G of Income Tax Act?

12A registration : Lifetime validity80G registration : 1 to 3 years validity

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.

When you apply for 80g you shall check yourself for the fitness of 80g approval under the following factors.

3. The nonprofit Ngo organization shall

not be able to apply for 80 g 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 80 g.

6. If you have already received the 80 g 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.

Donations with 100% deduction without any qualifying limit .

1. Prime Minister’s National Relief Fund

2. National Defense Fund

3. Prime Minister’s Armenia Earthquake Relief Fund

4. The Africa (Public Contribution - India) Fund

5. The National Foundation for Communal Harmony

6. Approved university or educational institution of national eminence

7. The Maharashtra Chief Minister’s Earthquake Relief Fund

8. Donations made to Zila Saksharta Samitis.

9. The National Blood Transfusion Council or a State Blood Transfusion Council.

10. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.

Donations with 50% deduction without any qualifying limit1. Jawaharlal Nehru Memorial

Fund

2. Prime Minister’s Drought Relief Fund

3. National Children’s Fund

4. India Gandhi Memorial Trust

5. The Rajiv Gandhi Foundation

Deduction amount u/s. 80g. Donations paid to specified institutions qualify for tax deduction under section 80G but is subject to certain ceiling limits. Based on limits, we can broadly divide all eligible donations under section 80G into four categories:

a) 100% deduction without any qualifying limit (e.g., Prime Minister’s National Relief Fund).

b) 50% deduction without any qualifying limit (e.g., India Gandhi Memorial Trust).

c) 100% deduction subject to qualifying limit (e.g., an approved institution for promoting family planning).

d) 50% deduction subject to qualifying limit (e.g., an approved institution for charitable purpose other than promoting family planning).

NGO CONSULTANCY

Contact: 011- 22235922, 43557608

MOB:- 07838272423

Email :- thengosystem@gmail.com

Website:- www.80g.co