80G Certificate is issued by the Income Tax Department to a non-governmental organization (NGO) such as a charitable trust, or a Section 8 Company. The 80G Certificate is granted to encourage the donors to donate funds into such non- profit organizations. Furthermore, the donor gets a tax exemption of 50% when they make donations to such organization, as they become eligible to deduct such amount from their Gross Total Income. Additionally, in order to avail the exemption, the donor needs to attach the stamped receipt of the donation made. Such a receipt must contain the donor’s name, date of donation, and PAN of the organization.
80G registrations apply for NGOs and Charitable Organizations if they fulfil the following conditions:
♦ They should not be working for the benefit of any particular caste or religion
♦ They must not have any income generated from a business
♦ They should either be a charitable trust or a registered society
♦ Also, such organizations should not be using their assets or income for any other purpose other than making charity
♦ Furthermore, they must maintain a regular book of accounts in favor of their receipts and expenses.
♦ The trustees or any other body governing the organization should not be involved in deriving any undue benefits from these funds
♦ Also, in the case of business-related income, the organization should maintain a separate book of accounts. However, the donations received by the NGO must not be used for such businesses.
NGO must apply for 80G Registration immediately after its Incorporation.
The following documents are required for 80G registration is as follows:
♦ MoA and Registration certificate in case of Section 8 companies and Societies and a Trust Deed in case of a Trust
♦ No objection certificate from the owner of the property where the registered office of the Institution is situated
♦ Form 10G & PAN of the NGO
♦ Copy of Utility Bills such as Electricity bill, water bill or House Tax Receipt
♦ A list of the donors along with their address and PAN
♦ The documents related to Income Tax Return and the Book of Accounts of the past three years
♦ The list of the welfare activities being carried out & the progress report of the last three years
♦ A detailed list of the Board of Trustees