Registration for 80G Certificate to Get Tax Exemption for NGOs

Know about the 80G registration process and how to get 80G Certificate and 12A Certificate to get tax exemption for the charitable trusts and societies (NGOs) in India. Income Tax department issues these certificates for tax exemption on donated money.

I realized that my articles on registration of charitable trust and society became popular and have been helping thousands of people, so I decide to take this series further and write about more related issues. Today, I am going to talk about exemption under the section 80G of the Income Tax Act.

What is 80G Certificate?

Exemption under section 80G gives rebate to a donor on the amount he donates to an organization that has 80G certificate. If the public charitable organization (NGO) has 80G certificate then the donors of that organization would not need to pay tax on the 50% of the donated amount.

How to Register for 80G Certificate to Get Tax Exemption

Exemption under section 80G is applied on a form called 10g. This form can be downloaded from Income Tax department’s website.

Validity of 80G Certificate

Income tax department issues 80G certificate only for a specific period (usually 1-3 years). After expiry, 80G exemption must be reapplied for and renewed.

Update (June 2014): Now Income Tax department is issuing 80G certificate for lifetime. You would no longer need to get it renewed.

Social work is important for a better society.

Social work is important for a better society.

Requirements or Getting 80G Certificate?

There are a few conditions that must to be fulfilled if you want to apply for exemption under the section 80g:

  • NGO should not have any income which are not eligible for exemption. For example, business income. lf, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business.
  • Bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than the charitable objectives mentioned in the Trust Deep or Rules of Association.
  • NGO should not be working for the benefit of particular religious community or caste.
  • NGO maintains regular accounts of its receipts & expenditures.
  • NGO is properly registered under the Societies Registration Act 1860 or under any law corresponding to that act or is registered under section 25 of the Companies Act 1956.
  • Trustees or governing body members are not drawing any undue benefits from NGO funds.
Documents Required for Registration of 80G Certificate
  • Dully filled in Form – 10G for registration u/s 80G registration;
  • Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head);
  • NOC from landlord (where registered office is situated);
  • Copy of PAN card of NGO;
  • Electricity Bill / House tax Receipt / Water Bill (photocopy);
  • Evidence of welfare activities carried out & Progress Report since inception or last 3 years;
  • Books of Accounts, Balance Sheet & ITR (if any), since inception or last 3years;
  • List of donors along with their address and PAN;
  • List of governing body I board of trustees members with their contact details;
  • Original RC and MOA /Trust Deed for verification;
  • Authority letter in favor of NGO Factory;
  • Any other document I affidavit / undertaking I information asked by the Income Tax department
When can you apply for 80G exemption certificate?

Exemption certificate u/s 80G can be applied for just after the registration of NGO is completed.

Where is 80G certificate to be applied?

Exemption under section 80G can be applied for at the office of Commissioner of Income-tax (Exemption) having jurisdiction over the institution.

I hope it was useful information for you. Please feel free to ask if you have any questions. Thank you for using TechWelkin.

Comments

  1. Revathi says

    Hi Lalit, thanks for the extensive info here.

    My question: What is the maintenance work required for a trust? In other words, after the trust has been registered, and I’ve obtained the exemption certificates, what procedures do I need to follow to ensure the validity of all the certificates? I understand that yearly IT returns & audits are necessary, could you explain these and any other requirements?

    • says

      Hi Revathi, primarily you need to maintain the transparent money flow. You must get the audit done from a qualified CA and file your IT returns on time. In addition, you should keep a proper register of your donors’ information (like name, address, amount, date of donation etc.) —it will also help you during the audit. It is also important that you keep the minutes of meetings of the Board of Trustees. You should also notify Income Tax department of any changes you make in Trust Deed. That should suffice.

  2. Aabid says

    Is this necessary to get 80G/12A certificate from the same state where the trust is registered or we can apply for the same from any other state.
    Please tell me is this possible to transfer the trust/head office of the trust from one state to another?.

    • says

      You will have to apply for 80G or 12A exemption certificates from the office which has jurisdiction over your current registered address. However, it may be possible to change the registered address through a resolution. Please speak with your lawyer about it.

  3. Mohit Saini says

    Thank you Lalit for this wonderful site. I received much important and helpful information regarding opening a NGO.
    Thanks :)
    Mohit

  4. SUDIREDDY NARENDAR REDDY says

    Very useful information about 80G exemption you provided. i am very happy. i hope your services are recognised very well. thank you

  5. Bharat Raul says

    Dear Lalit
    I have an NGO registered 2 years back in Pune, now I am looking for 80 G, 12 A & 35 Ac certifications so please suggest me a help desk or a agent who will do all this paper work and filing for me.

    • says

      I am sorry, Bharat, I will not be able to to give such specific details. I am sure you must have CAs and lawyers in your area who can help you in applying for income tax exemption certificates. Find and contact them.

  6. prem says

    Hi Lalit,my doubt is that think i am a settler now,i started a trust and funds are in trusts account and now who can draw the money from that account and who and al cant draw fund.who is eligible to draw funds completely for lifetime.

    • says

      When you open a bank account in the name of the trust, you need to tell the bank who will be the authorized signatory. Only that person will be able to sign cheques to make payments or withdraw cash. This person is usually one (or two) of the founding trustes.

  7. RAJESH KUMAR says

    Hi, Lalit, My organization is in mizoram and will it possible to apply from mizoram itself. There is no income tax office in mizoram and where should i apply for 80G?

    • Lalit Kumar says

      Hi Rajesh, you’ll have to find where is the Income Tax office under whose jurisdiction your registered office lies. Even if there is no IT office in Mizoram, there must be an IT office somewhere that takes care of IT matters of Mizoram. Find it out.

  8. RAJESH KUMAR says

    Hi, Lalit, Please help me in getting 80G as soon as possible.Is it possible to apply the same online?

  9. manish says

    hi Lalit, thank you for the good work. If it is not mandatory to register trust deed with office of sub registrar, and as you said getting Income Tax exemptions is the effective registration, then is the following process correct to establish public trust?

    step 1 – signed trust deed on non judicial stamp paper
    step 2 – fill form 10A
    step 3 – fill form 10G

    Is trust established at step 1 itself?
    At what stage can I open a bank account?
    Do I need a PAN for the trust?
    Form 10A asks for copy of accounts? How do I provide that upfront?

    • Lalit Kumar says

      Hi Manish, in theory, it is not necessary to register a trust with the sub-registrar. BUT for all practical purposes, you have to register! If you don’t register, you can not open a bank account. Yes, you need a PAN card (without which you can not apply for 10A or 10G). If the trust is newly established, you don’t need to show copy of accounts.

  10. jaipal takria says

    we have new ragistred section 25 act company 3 month old. can we alligeble for ragistration of 80g certificate

  11. Jabez says

    hi Lalit, thank you for the article it is very helpful. can u please let me know. after registering a NGO as a trust or society does there need to be a time period before applying for 80g exemption? or can we immediately apply for 80g after registering the NGO.
    thank you,
    Jabez

  12. mone says

    How many working days does it take to get the 80g certificate?

    What is the fee required to pay for the certificate?

    Is there any specific criteria for members in the ngo that should be a problem with the procurement of the certificate?

    • Lalit Kumar says

      It all depends on the Income Tax department. There is no specific time frame. NGO trustees should not draw personal benefits from the NGO funds -this is the most important criteria for getting 80G.

  13. Amit Sarawgi says

    Whether any specific clause is required in trust deed or any things which must be in trust deed for applying 80G certification

    • Lalit Kumar says

      Hi Amit, yes, the Trust Deed must mention that the trust’s funds will not be used for personal benefits of any of the trustees.

  14. Yogesh Verma says

    The Trustee donete the to trust Rs. 5 Lacs, Can allowed deduction u/s 80 G or any other section of income tax act.

    • Lalit Kumar says

      If the trust has 80G exemption and if the amount was not paid as Settler’s initial contribution to the trust, the amount would be tax-deductible under section 80G.

  15. KENCES EDUCATIONAL AND CHARITABLE TRUST says

    For applying or for getting 80-G certificate is it necessary to have 12 A certificate.

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