What is the Exemption under 80G
Exemption under section 80G exempt a donor from paying Income Tax. If the public charitable organization (NGO) has 80G certificate then the donors of that organization would not need to pay tax on the amount of money they donate to the organization.
How to apply for 80G 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 Exemption
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.
Conditions for getting 80G exemption?
There are few conditions to be fulfilled under the section 80G:
- The NGO should not have any income which are not exempted, such as 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.
- The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than charitable.
- The NGO is not working for the benefit of particular religious community or caste.
- The NGO maintains regular accounts of its receipts & expenditures.
- The 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.
Documents required for registration for 80G
- 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?
80G can be applied just after registration of the NGO.
Where is 80G to be applied?
8G can be applied to the Commissioner of Income-tax (Exemption) having jurisdiction over the institution.