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80G Registration

Explore all the details you need about 80G Registration, tailored for your needs.

Registering your NGO under Section 80G can significantly enhance your ability to attract donors by offering them the benefit of tax deductions on their contributions. This financial incentive makes donating to your organization more appealing and can boost your fundraising efforts.

80G registration allows donors to claim tax deductions on their contributions to your organization, making it more attractive for potential supporters. At Solocorp Verifocus Legal LLP, we provide expert guidance to help your organization obtain 80G registration, ensuring a smooth and efficient process from start to finish. With Section 80G registration, your NGO can unlock significant advantages in donor engagement and fundraising, enhancing your ability to support your charitable mission.

Section 80G of the Income Tax Act

Section 80G of the Income Tax Act 1961 allows individuals and organizations to claim tax deductions on donations made to eligible charitable organizations. Once an organization obtains an 80G certificate, it is recognized by the Income Tax Department as eligible to receive donations that qualify for tax exemption. Donors contributing to such organizations can reduce their taxable income by claiming deductions on the amount donated, promoting charitable giving and supporting the sustainability of nonprofit initiatives.

What is 80G Registration?

80G registration enables donors to claim tax deductions on donations made to eligible charitable organizations. The registration grants tax benefits to both the donor and the recipient. Charitable organizations registered under Section 80G are entitled to receive tax-deductible donations, and donors can claim deductions on the amount donated while filing their income tax returns.

The Finance Act 2020 introduced amendments to India's 80G registration provisions. These amendments include the requirement for organizations with 80G registration to file annual returns, verification of donees by the Income Tax Department, and the possibility of reassessing and revoking registrations for non-compliance.

Importance of 80G Registration

80G Registration under the Income Tax Act allows donors, whether individuals, companies, associations, or organizations, to claim deductions on their total income for donations to an NGO. This exemption is provided under Section 80G of the Income Tax Act, stipulating that the donated amount must not exceed ten per cent of the donor's gross total income. Donations must be made in monetary form, and only financial transactions are considered valid under this section. When issuing receipts for donations, NGOs must include the number and date of the 80G certificate, indicating the validity period of the certificate.

1

Tax Deduction for Donors

Donors can claim tax deductions on donations made to eligible NGOs, reducing their taxable income.

2

Monetary Donations Only

Donations must be in monetary form, and only financial transactions are valid for tax deductions.

3

Receipts and Documentation

NGOs must issue receipts that include the 80G certificate number and its validity date to maintain compliance.

Eligibility for 80G Registration

To qualify for 80G registration, organizations must meet specific criteria to receive tax-deductible donations.

Legal Structure

The organization must be registered as a trust, society, or non-profit company under a recognized legal structure.

Non-Profit Objective

The primary objective of the organization must be charitable, with no profit motive.

Proper Documentation

The organization must maintain accurate accounting records and have audited financial statements.

Compliance with Statutory Requirements

The organization must comply with Sections 11 and 12 of the Income Tax Act.

Non-Exempt Business Income

No non-exempt income from business activities, or separate records for any such income.

Non-Exclusive Focus

The organization must not exclusively benefit a specific religious community or caste.

Darpan Portal Registration

For registration or re-validation, the organization must have a registration number from the Darpan portal of Niti Aayog.

Audit Reports

If the total income exceeds the threshold, the organization's accounts must be audited by a chartered accountant.

Utilization of Funds

At least 85% of the income should be spent on charitable activities within India.

Benefits of 80G Registration

1

Tax Deductions for Donors

Donors can claim tax deductions of up to 50% or 100% of their donations, depending on the type of charitable organization.

2

Enhanced Credibility

Organizations with 80G registration are viewed as more trustworthy, making it easier to attract donors.

3

Increased Donations

The tax benefits make these organizations more attractive to donors, leading to more donations from individuals and businesses.

4

Wider Reach

80G registration allows organizations to connect with a larger number of potential donors, increasing their fundraising ability.

5

Compliance and Transparency

Registered organizations meet legal standards and operate transparently, ensuring donor trust and compliance.

Documents Required for 80G Registration

Trust Deed/Society Registration Certificate/Section 8 Company Certificate

Memorandum and Articles of Association (for Section 8 Companies)

PAN Card of the Organization

Bank Account Statement

Audited Accounts for the Last Three Years

List of Trustees/Members/Directors

List of Activities Conducted by the Organization

80G Registration Validity and Renewal

  • The initial provisional registration under Section 80G is valid for three years. After this period, organizations must renew their registration. Upon successful renewal, the registration is valid for an additional five years. To continue enjoying the benefits of 80G registration, organizations must renew it every five years thereafter.

Process for Obtaining 80G Registration

The process for obtaining 80G registration for NGOs involves several steps to ensure that the organization qualifies for tax-deductible donations and meets the necessary criteria.

1

Step 1: Application Submission

Submit an application in Form No. 10A for 80G registration to the Commissioner of the Income Tax Department in the organization’s jurisdictional region.

2

Step 2: Document Examination

The Income Tax Department will thoroughly examine the application and documents submitted.

3

Step 3: Additional Information (if required)

If additional documents or information are required, the Income Tax Department will request them. The organization must submit the requested documents within the specified time frame.

4

Step 4: Certification Issuance

If the Income Tax Department is satisfied with the submitted documents and information, the 80G Certificate will be issued to the organization.

Streamline 80G Registration with Solocorp Verifocus Legal LLP!

Simplify your 80G registration process with Solocorp Verifocus Legal LLP. Our experts guide you through each step, from application submission to getting an 80G certificate, ensuring a smooth and efficient experience.

Let us handle the complexities while you focus on your charitable activities. With our support, you can complete the 80G registration effortlessly, ensuring full compliance and maximizing your organization's potential.

  • 1

    Consultation

    Our experts will help you understand the 80G registration requirements and guide you through each step, ensuring a smooth process.

  • 2

    Document Collection

    We assist you in gathering all necessary documents, such as trust deeds, registration certificates, and financial statements, ensuring no step is missed.

  • 3

    Application Preparation

    Our team ensures that your 80G application is completed accurately, with all required details and documents for submission.

  • 4

    Submission

    We will submit your 80G application to the relevant authorities on your behalf, ensuring timely processing.

  • 5

    Follow-Up

    We handle any follow-up with the authorities, ensuring that any issues or additional information requests are addressed promptly.

  • 6

    Affordable Service

    Our services are cost-effective, ensuring high-quality assistance with your 80G registration at competitive prices.

  • 7

    80G Certification Issuance

    Once approved, we assist you in receiving your 80G registration, allowing you to enjoy the tax benefits available under the Income Tax Act.

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Startup
Registrations
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