80G Certificate comes under Income Tax Act, 1961. It basically deals with donations made towards charity, to provide tax incentives to Individuals indulging in charitable activities. It provides tax deductions on donations which made to certain funds or charities. If any person donated an amount to an eligible charity can be claimed as a tax deduction while filing an Income Tax Return.
Eligibility For 80G Certificate
All tax payers are eligible to make donations to the charity under Section 80G and claim a deduction, subject to the limits which set down by the Government. NRI’s donations are eligible to Trusts or Institutions and are also entitled to the benefits under Section 80G.
Procedure of 80G Registration
In this section, the registration will be processed by The Commissioner of Income Tax Department after receiving an application from the applicant in form 10G. The application should be attached by the following documents.
- Registration Certificate.
- MOA /Trust Deed.
- NOC from the proprietor of the land where the registered office is situated.
- Copy of the Pan Card of the Trust/Institution.
- Copy of electricity bill, house tax receipt, or water bill.
- Proof of welfare activities pursued.
- Progress Report since the foundation of the NGO or for the previous 3 years.
- The statement of accounts and balance sheet since the foundation/previous 3 years.
- List of contributors along with their address and PAN.
- List of governing body of trustees with their contact details.
80G Certificate Requirements
- If a non-profit organization start any business then they have no right to mix any amount which they receive for a social cause. For this they should maintain a differ account from business account.
- Other than the charitable cause, the organisation or its byelaws should not represent any other cause. None of the donations can be spent toward anything.
- The organisation shall not be able to apply for 80G if it supports religion-based, caste- or creed-based activities.
- The organisation should be registered under the Societies Registration Act, 1860, or registered under section 25 of the Companies Act, 1956.
The Income Tax Department has the right to either approve or reject such approval upon disqualification of the non-profit organisation or dissatisfaction found by the department towards the non-profit organisation activities