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 topics. Today, I am going to talk about exemption under the section 80G of the Income Tax Act.
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.
Exemption under section 80G is applied for on a form called 10G. This form can be downloaded from the Income Tax department’s website.
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.
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 is not eligible for exemption. For example, business income. If 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 Deed or Rules of Association.
- NGO should not be working for the benefit of particular religious community or caste.
- NGO should maintain regular accounts of its receipts & expenditures.
- NGO is properly registered under the Societies Registration Act 1860, Indian Trusts Act 1882 or under any corresponding law or is registered under the Section 25 of the Companies Act 1956.
- Trustees or governing body members are not drawing any undue benefits from NGO funds.
- 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
Exemption certificate u/s 80G can be applied for just after the registration of NGO is completed.
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.
Do you really require a CA to audit the accounts every year. Can i not do a self audit.
What if initially the trust is only collecting money till it reaches a corpus fund target post after which it intends to start the charity activities with only the interest income on investment activities of the corpus fund. Even then is an audit required? In such cases the bank statements will themselves serve as proof till the corpus fund target is reached.
If you want to remain eligible for 12a and 80g, the accounts must be audited by a certified CA. Audit reports, signed and stamped by a qualified CA, need to be submitted to the Income Tax department.
Hi Lalit
First of many thanks to provides wonderful articles. I just got to know about your blog on landing on this article . As I did not post a query on that so I am posting here.
One of my friend registered a Society(NGO) with 7 board members and he got the certificate for the same. Now He want to include my name as additional board member. So What to do for this? There is need to make MOA & RR again with 8 members this time. Whats the process to add the name?
Thanks
If the existing MOA and RR mention that there can not be more than 7 members in Governing Body –then you will have to change the MOA and RR. Otherwise 8th member could be added by passing a resolution.
Hi Lalit,
Very helpful article.
Purpose of our trust is to spread the awareness of a meditation technique for children and adults , which helps them to alleviate mental sufferring and gain mental health and peace. The meditation technique is taught for free. As a part of our awareness activity, we write and publish newsletters and books, which we sell to refurbish our publication costs for current and future publications. These publications are purely for the purpose of the trust, which is to spread the benefits of meditation to people in their lives and reduce their sufferring through meditation courses which are given for free. Does our book sales as a part of our trust activities , inhibit our eligibility for 80G ?
I don’t think that it inhibits yours eligibility for 80G. As long as you use and show the funds generated from book sale in trust’s charitable activities; and as long as no trustees gets any benefit from trust’s funds, there should not be any problem in your 80g status.
How are online 80G receipts generated? Is there a software?
Hi lalit,
You are really doing a great job.. thanks for your efforts and time.
Well, recently we added a new trustee who’s a qualified CA.. can he audit and file our IT returns for our trust.. even though he’s trustee of our organistion?
Yes, he can. If he is a qualified CA and if he indulge in malpractices while auditing your trust’s accounts, he stand to lose his license of being CA. So, there is no issue in a qualified CA becoming a trustee and audit the accounts.
Our Trust Irengbam Thamcha Devi Nursing and Health Care Research Institute have obtained section 12AA and 80G for availing donation and grant funds for betterment of the weaker section of the society. We have seen all the consultants are working only Registration and they are not functioning fund raising consultancy service.
So we are highly interested to contact a good consultant for availing funds grants and donations under our 80G Certificate through his service.
Hi! If I want to register an NGO as a Trust. Will I be eligible to apply for the 80G and 12A certificates? As you have mentioned that only those which are registered under Societies Reg. Act 1860 or Sec 25 of the Companies Act 1956 can apply? Aren’t Trusts governed by any of these? Best regards
Trusts registered under Indian Trusts Act 1882 are also eligible for 80G and 12A certificates. I have updated the article.
Hello sir, our NGO is registered under society & public trust in 2010, we are having PAN, audited reports & 12A, now we want to apply for 80G but our one member resign this year and we took one person as a member on the place of resign person. can we apply for 80 G with new member name & submit change report at the same time? or we need to submit change report first and after approval from charity commissioner then apply for 80G. please give us guidance.
If I remember it correctly, you would need to give details of all the members of the governing body at the time of application for 80G. So, the proper way would be to notify the charity commissioner first and after approval apply for 80G.
Hi,
We have got 80G registration before 2014. when it was issued, validity was till 2010 only as per issued certificate. Is it required to renew it now to get life time validity or it is automatically valid for life time. Our CA says, he was told by dept people that it is valid for life time based on latest Govt. GO.
But i am not sure on that. Request clarify.
Well, on paper you have validity only up to 2010. So, it is better that you apply again and get 80G with lifetime validity.
Hi Lalit,
Wonderful articles. Thanks for taking the time and effort to educate everyone who is trying to learn how to go about starting an NGO.
Some friends and I have formed a network of parents of children with special needs. We have been organizing various activities for the parents and children. Now we are planning to formalize it by forming a trust or a society, and apply for 80G and 12A.
My query: Will a trust be allowed to charge for some of its activities? For example, we organize picnics and other outings for the children and the cost is shared between all the parents. Can we continue to do so, or does this violate any IT norm? There is no profit intention, only to recoup the costs.
Look forward to your response, and keep up the good work!
You can continue to do what you have been doing, i.e. collecting money from parents and then organizing picnics. Cost is shared on actual basis. I am not sure what charity is involved in this whole scenario. You’re doing a good job but your monetary needs are being satisfied by the parents on actual cost basis. You can register a trust, then seek donations from general public or various organizations. Then you can subsidize such events. You can however charge a fee from parents as long as you’re able to show that all the money was used for charity purpose.
Our CA filed the return without mentioning that we have 80g & 12a exemption. So, we received demand notice from income tax department for the assessment year 2013-14 and 2014-15. Now he is rectifying & refilling the same. Please help us by your opinion.
Your CA is doing the right thing by correcting the tax return. There should not be any problem as you have 80g and 12a.
Hi Lalit, Is it possible to send the 12AA and 80G approvals granted in one go as I am facing difficulty in explaining the same even to ITAT that both can be granted simultaneously in view of column No 6 (3) of Form 10G. Yet relying on Rule 11AA, CIT is insisting to get the 12AA first and then apply for 80G. If there is any citation in this regard it would be of great help.
Well, I don’t know of any such citation but 12a and 80g are granted simultaneously. I also got both of them in one go.
Brother – Thanks for all your valuable information. I have registered the NGO trust on Dec, 2015 for funding poor kids heart surgery. I have applied PAN card also. Still, I didn’t create a bank account for trust but collect the fund to my current account from donors / friends. I have few queries,
1) Do i need to Tax filing for 2014 / 2015 year?
2) Do i need to provide receipt for Trustee member’s donation amount also?
This is not the proper way. The money you’re collecting in your personal bank account will be considered your personal income and you will have to pay income tax on that. You should immediately open bank account for your NGO and apply for PAN. You can not file income tax unless you have PAN card. You should provide receipts for all the donations you get.
Thanks Lalit. I got PAN card on last Feb, 2016 but waiting to open the bank account for NGO Trust.
Do i need to submit Tax filing for 2014/2015?
Yes, if you have a registered NGO, you’re required to file tax return every year.
Hi Lalit,
Have you published any article on how to register for a not for profit company/organisation?
Not yet.
Hi Lalit,
I stay in Canada and its easy for me to get donations for my Foundation here.I have registered NGO as a trust this year,
What all steps I will require to receive donations legally from USA and Canada?
Is it just FCRA registration or still I will need 80G and 12A certificate?
Other thing is We use to work for this cause from last 10 year but never got it registered until this year so we have all proofs,receipt ,will it help us to get FCRA/80G/12A registration or we have to wait three more years?
Thank you so much for your great work!!!
You would need to get FCRA for receiving funds from abroad. But you should also get 80g/12a as well.
If an NGO is not registered for 80G, how much donation could be received? Can NGO apply for 80G registration before 3 years?
You can apply for 80g anytime you want. You can receive any amount as donation even if you don’t have 80g. However, in such a case you can not offer tax benefit to the donor.
A trust has a pan card since 2011 but has not obtained 80g or 12a certificate till date nor filed an income tax return for any of the years. Now there is a notice from the income tax department to file return of income. Whether after notice, application for 80g and 12a is made. Will the trust get exemptions in the previous year which are granted by 80g?
You can get exemption only on the funds collected after receiving 80g and 12a.
Thanks for valuable info.Our NGO is registered for last 7 years. We have worked and all the documentation is updated. So far we have not taken any money for any organization. But now our work is expanding we want to approach organizations. We will be needing 80G certificate now. We stay in DLF1 Gurgaon. Please guide where should we go for the things to be done.
You should approach the Income Tax office under whose jurisdiction your NGO’s registered office comes. You will get all the details there. Or if you don’t have time, just ask your CA to follow the process of getting 80G certificate.
Hi Lalit,
Useful info indeed.
I have moved from Arunachal Pradesh to Jammu and now to Hyderabad. I had registered NGO in Arunachal and need following info pl:-
– how to change address permanently
– where to apply for 12 A and 80 G? I cannot go back to Arunachal and action by post very slow. Are e services available? Details, if yes.
First change your registered address. Pass a resolution and then contact the sub-registrar who has jurisdiction over the new address. Once this is done, you should contact your local Income Tax office for 12A and 80G. Or just contact a local CA.
I am General Secretary of a Club which is registered with the concerned department of Govt. of West Bengal. Main activity of our club is to participate in Football League governed by IFA. We have audited reports etc since long. Currently our club is being run by a handful donators. In order to get more donator, Can we get 80g certificate? Kindly enlighten.
80g exemption certificate is given to those registered organizations that are involved purely in charity activities. If you think that is what you’re doing, you should approach the Income Tax Commissioner of your area for more details.
Hi,
I have an registered Sports NGO under the societies act in 2011.
Wanted to know can I apply for both 80G and 12 A? I do not have bank account.
or
first apply PAN card
bank account
Should I hire a CA?
Please suggest.
Thanks
Jitender
Yes, apply for PAN card… then open a bank account… then apply for both 80g and 12a (for this you can hire a CA if you want to).
In case of registration of trust under income tax what is meaning of Authority letter in favor of NGO Factory
Second Electricity bill is not on the name of trust, Its on the name of landlord.
As far as I know, NGO Factory is an organization that helps you in registering your NGO. So, you need to give them a letter which authorizes them to do registration process on their behalf. You need to take an NGO from the landlord if you want make your office in a rented property.
Hi Lalit,
Thank you for the informative article. I work with an IT firm. We have been doing CSR activities but not in a very structured manner as of now. We recently have established a separate entity as a Foundation for our organization. We wanted to run a payroll program for employees of our organization who are willing to donate in the projects the organization is supporting. We wanted to give the employees tax exemption benefits to the donation they make even if it is as low as rs 100/-. So my question is do we need to register out foundation as a trust or a society? Also, how important is it to register our foundation as a trust or society for carrying out other CSR activities or transactions.
Thanks
You can register either a trust or a society. Both are good in their own ways. Once the organization is registered, apply for 80g exemption. It is always better to register an organization because only then you can provide tax exemption benefits to the donors.
Hi Lalit,
We have an educational NGO running past 15 years of which we have the balance sheet maintained by CA. After reading your article we were keen for 12A and 80G since it’s a no profit educational institute runned by the NGO. But the primary requirement being PAN card is a issue which was not obtained back then. How should we proceed with this including obtaining of PAN card for the society and then 12A as 15 years have already passed?
Well, not possessing a PAN card as you run an educational institution defeats the whole purpose of balance sheets maintenance. You can apply for a PAN card as everybody does. Then open a bank account in the name of NGO. Then apply for 12a and 80g and receive all the donations in the bank account of your NGO.
Hi Lalit, your information is valuable. I am planning to register a trust for running a school for the underprivileged children from poor families. Can we use the fund of the trust to pay the salaries of the staff? Will it be objectionable when applying for 12A and 80G?
Hi Annie, you can pay reasonable salaries to the staff. Their is no problem in that.
How long does it take to receive the 80G certificate after applying for the same.
There is no set limit. How long it will take depends on the efficiency of the Income Tax office where your application has gone and also on the efficiency of the applicant in continuously following it up.
sir, we are a group of students of 11th class. We have used our parents’ id to register a society. We used to do social work through that. But we are regularly facing financial problem for the society. Can this 80g certificate help us? Is it valid for us? how can we get this certificate? what type of accounts we have to maintain? it is worth to mention here that we do not have any bank account&PAN till now. Please suggest sir how can we proceed and can arrange some sources of finance for our society? We want to continue our work sir, so please help.
Rishabh, if you have a properly registered society, you can apply for 80g certificate. This certificate will encourage people to donate to your society because it will give the donors tax benefit. You must get a bank account and a PAN card before you go to Income Tax office to apply for the 80g and 12a certificates. For more details you should contact a qualified CA (you would anyway need a CA to audit your accounts). All the best.
Hi brother Lalit!
Before I could start I would like to thank you for your kindness in helping the public. I’ve registered the society in June 2014. I have pan card and bank account for the society. I have conducted a couple of programmes for the poor people of remote villages. How do I go about getting 80g certificate? Please help me.
I think you should contact a good CA. A good qualified CA can help you in getting 12a and 80g certificates. And you will also need a CA to do the annual audit of your accounts.
Does the same rules apply to a company registered as section 8 of companies act 2013?
Hi Amrit, I am not sure about the rules in relation with the Section 8 of Companies Act 2013.
Hi lalit,
A great effort from you in providing the details. My question is: Our organization is registered as a SOCIETY under “Societies Registration act, 1860”. We already have PAN card and BANK Account in the name of organization. Now, as a society can we apply for 80-G & 12-A? Or Do we have to convert SOCIETY to TRUST to get TAX exemption benefit.
Please help us in clarifying this doubt.
Thanks….
Both society and trust are eligible for 80G and 12A certificates. You can apply for these.
Hi Sire, I don’t understand what is actual benefit to donors. Can you explain with example how tax are exempted? Please.
If you donate, let’s say Rs. 10,000 to an NGO which has 80G exemption certificate, then you will get income tax exemption on this donated amount of Rs. 10,000. Certificate given to some of the NGOs offer tax exemption on 100% amount while others offer lesser exemption. A donor should ask the NGO about tax exemption benefit before donating.
HI sir,
I am running an educational society which was registered in 2013. We do not have any land/propety and we are running the society from our rented residency. Is it must that we have our own place/land/building to get 80G Certificate? Without 80G certificate, can we raise funds and donations for the improvement of the society just by having registration certificate and MOA.
You don’t need to have own property in order to get 80G exemption certificate. You can take donations for your social work but without your having 80G your donors will not get any tax rebate.
I have a question Sir,
Firstly, It is great of you to be serving so many of them in many important subject. Thanks!
Can we running a NGO as a trust, change its name partly and still continue to hold on to the same PAN , EXIM, 12A and also apply for 80G and Fcra?
For your clarity, Our name ends with the word ‘India’ but would like to change it to ‘South Asia’
Hence, Could we ask the departments to change it in their records and help us not to re-seek all the permissions which is granted earlier??
Hope we have an answer from you sir. Thanks!
Hi Benjamin, if you change your trust’s name —all the certificates and PAN card will become invalid. You will have to reapply / notify at respective departments.
Appreciable article. i got my query resolved after going thru your golden article. God bless you. May you achieve all soon what you desired in life. You are not only giving learning to those who are in need but working as a charity as well. You are spreading the real fragrance of “Gyan”. Impressive.
Thank you for your kind words Vijay ji! If we all work together, we can even move mountains :-)
dear sir I want to know if there is an NGO/Society registered under MP society registrikaran adhiniyam sec. 44 of act 1973 and also got 12A and 80G certificate. Then if that NGO change their name and their all governing body name. Do they have to change or apply for the change the 12A and 80G certificate?
If yes, how much does it cost to get/change 12A and 80G certificate?
Hello Rajesh, in all probability, you will have to get fresh 12a and 80g certificates. You must immediately notify the Income Tax department of the changes you have made in your NGO.
Hi Lalit,
Once an NGO has obtained 80G and 12A registration, does it need to re-apply/re-register for 80G in case it changes its name?
Yes, I am sure you would need to reapply for the 80g and 12a certificates.
We have registered our Society in Sep-2014 under Register of Societies using Mee Seva – Telangana with President Address.
Unfortunately, our President expired due to Cancer in Jan-2015.
Actually we don’t have Pan Card and Bank Account for the Society till now.
We are trying to change the address from President to Secretary Address using Mee Seva – Telangana. But they are rejected due to By-Laws and other documents.
And we want to change the Members in the Society as well.
Please tell me the procedure to change Society Address and Members modification in the Society.
And we need 80G and 12A for the Society. We are doing so many Social Service Programs till date..
Kindly give the guidelines to continue for the Society…
Dear Venkatesh, you can change the members of the governing body by passing a unanimous resolution and then submit a copy of this resolution to the Registrar of Societies in your area. In the same way, you can also change the registered address of your NGO. You should go to the office of registrar and ask them the exact documents that they will need. I would highly recommend that you get a PAN card and bank account for your NGO.
How much does it cost to get 12a and 80g exemption certificates?
Application forms etc. are all free. But if you take services of a CA to get these certificates, then the CA will charge his own fee.
Hi Lalit,
Good job on the article and diligent efforts to reply to all comments. My question is different than those already asked. The objectives of the trust that I intend to register is to promote art, culture and education, with none of the trustees intending to make any profits. Will this fall into the category of charitable trust or NGO? Will 80 G/12 A exemptions apply for the promotion of art and culture? If any and all the proceeds from sale of music CDs are accounted for the trust, will it be considered as profit-making organization?
You can promote arts and culture through a public charitable trust. Anything you do for the benefit of society (without making personal profit) is considered a charitable work. You will get 12a and 80g as well. Just make sure that all the donations will be used only and only for your objectives. And don’t make any profit from your trust. That’s it.
Is it necessary to have PAN in the name of the trust or it can be in the name of the trustee also?
You have to have PAN card in the name of the trust.
Hey Lalit,
This was quite informative. Thank you. I just wanted to know that if the NGO I work for has the 80G certificate then is it valid from the date of receiving the certificate or from the date of application or from the beginning of that financial year?
80g certificate is valid from the date of issue.
Hi Lalit,
Good to see that you are solving the problems of lots of peoples. I also want to be one of them.
I have opened a play school in Delhi, which is not yet registered, because i was not aware of registration process of school. Now i came to know that it can be registered under NGO(Trust, Society or Pvt. ltd company). Still not sure which option i should go for. I need government support as well, because i am also looking to open school for uneducated people living in village areas (under Prodh Shiksha Abhiyan).
Kindly suggest.
If profit making is not your interest, then you can register an NGO and begin to support your existing play school with the funds you collect through NGO. As for whether you should register a trust or a society, you may read my article on the differences between the two. Then you’ll be able to decide on your own.
can a registered club in West Bengal get 80g certificate? if yes how we apply for this certificate?
80G certificate is given only to registered organizations that work for charitable purposes. If you have such an organization, you should contact the charity commissioner in the Income Tax office of your area.
Hi Lalit,
I am in the process of starting a company. I need your input.
– What is the difference between Foundation and Trust?
Hope you are aware of Murugappa group. I would like to start a business like that under foundation. Would it be possible?
I want to do some social work under foundation name with my part of the salary I earn from IT work. This foundation can accept donations from people for social work.
In this case, what is your suggestion? Can it have tax relief?
If I run a business (some manufacturing work) under foundation then do I need to register the manufacturing company as a private limited or it is fine to register as trademark?
BTW, Your article is very clean and understandable. Thank you so much.
Hi Mahendran, you should actually start a Section 25 company (which is a form of an NGO). Section 25 company allows you operate business and do social work at the same time. Please consult a lawyer or company registrar for this.
Dear Lalit,
I am planning to register a trust and I am in the process of preparing the trust deed. What are the next steps and what is the order that needs to be followed?
1. Register the trust
2. Open a bank account for the trust
3. Apply PAN for the trust
4. Apply for tax exemptions under Section 12A and 80G
4. Apply for FCRA clearance
Let me know if this is the right order. Thanks
All the steps are in correct order except that you need to apply for PAN Card first. Without PAN Card, bank account will not be opened.
Thanks Lalit. Much appreciated!!
I also have another question on Step 1. Register the Trust
A) To register a trust, first i need to create and register a trust deed
B) Use the trust deed to register a trust along with covering letter, Application form (Schedule II under rule 6), court fee stamp of Rs 2 affixed on application form, consent letter of Trustees.
Is this right? Also is there a format for consent letter for Trustees? if so, can you share the same with me? Thanks.
Go to a notary in the registrar’s office. He will help you in doing the registration process.
sir in dec 2014 we start welfare activities…but have not registered . now we think to take 12a registration and 80g registration…..shall we have to audit our accounts of previous year……..i.e. 31st march 2015 ..our receipt is less than taxable limit in previous year…..but in this year it might be more than taxable limit
First you’ll need to register an organization, i.e. a trust or a society. Assuming that you have already done that, yes, you would need to get the accounts audited for previous year as well.
ONE PRESIDENT OF ONE NGO HAS DONATED RS 40000/ FROM HIS PERSONAL A/C BY CHEQUE FOR THE WELFARE WORK OF THE ORGANIZATION WHICH DOES NOT HAS 80G CERTIFICATE AND DONAR IS PRESIDENT OF THE NGO, HE WANTS TO KNOW IS IT POSSIBLE FOR HIM TO CLAIM BENEFIT OF HIS DONATION MONEY ? PLS REVERT
If the NGO does not have 80G exemption certificate, tax benefit can not be claimed.
The site is very informative – thanks to you.
I need to change the registered address of a trust as mentioned in the 80G certificate.
How should I go about this ? Is there any specific form to be filled in ?
Any documents to be attached ?
Thanks and all the best for the efforts you put in making others life easy.
Anuradha
Anuradha, I have never come across such a query. I don’t know the answer but I think that you should go to the Income Tax office and meet the Income Tax Commissioner (or their aide). They can tell you how to proceed for changing the registered office address in 80G certificate. In any case, you need to notify Income Tax department for the change in your registered address. When you’re done with this change in 80G, please come back and share the process here for the benefit of other people.
Namaste sir,
Found ur article very useful . m planning to set up public Trust for Organic farming in Punjab . I do have my family ancestor home in my village which i wants to use as operational building for trust n official address too. Can i take my own building on long lease instead of declaring it trust property ?
thanks
mohanjit
Yes you can.
Dear Sir,
I’ve regd NGO in 2010, but I couldn’t apply 12A & 80G still today. But want to apply FCRA directly, is that possible?
I think you should first get 12a and 80g. That will make your case for FCRA stronger.
Sirs
i registered a charitable trust at
sub -register office in kerala last month. The trust’s registered office is at Kerala and administrative office is working in delhi. Opened a bank account in Delhi in the name of trust. My question is that.. could i apply 12A and 80G registration in Delhi. .Is Pan card necessary for appling 80g.
thanking u
You will have to get a PAN before applying for 80g and 12a exemption certificates. Also, you’ll have to apply for these certificates in the Income Tax office that has jurisdiction over your registered office. So, you will have to apply in Kerala.
Dear Sir,
We have a society running since 2000 and is a non profitable society which works for the welfare of the people, awareness and education programm in Telemedicine. And is registerd as Telemedicine Society of India under socities registration act 21 of 1860.
How we can get the 80 G certificate and 135 certificate i.e; CSR ( Corporate Social Responsibility).
Vaibhav, this article is exactly about how to get 80g exemption certificate. Please read it. As for the other certificate you mention (CSR certificate), I am afraid, I don’t have information on that.
Hello Sir,
I have just got my society registered. I have got the PAN card. I have applied for a bank account. Now I have not started any work with the society. How can I get my society registered under 80G?. Would I get it for lifetime?. What is the fees for 80G and 12A registration.
Now you can apply for 80g and 12a. These exemption certificates are now given for lifetime validity (or unless explicitly revoked by the Income Tax department)
Hello Sir ,
I Have registered my NGO section 8 company in December 2014 . so can I apply for 80 G , 12 A and what is the document required fro both certification . Please suggest me
If you have a PAN card and bank account for your NGO, you can apply for 80g and 12a exemption certificates. I would suggest that you speak with a CA for applying for the certificates.
hello sir
i register my ngo under society act.
but im nt maintained bookkeeping and other record last 4 year’s. bt nw i wany to maintain it and apply for 80g so wht i do
If you do not have audited financial records of last three years, you may not get 80G. So, I would suggest that you wait for 2-3 years, keep books, get them audited and then apply for 80G.
hi, sir
my NGO is registered from last 15 years.
can I apply directly income tax commisner office for 80 G and 12 A ? ang how much time get 80 g and 12 A to me ? and how much fees have to pay for this ?
please quick reply
thanks
You can apply for the 80G and 12A certificates anytime you feel like. Time and fee vary on the basis of how you want to apply. Using a CA is more expensive but it takes lesser time because CAs know the whole process and can do it fast.
Thank u lalit your information very useful. I had many questions but all r solve to read your article.
nawal kishore
That's great! All the best for your social work efforts.
Respected Sir,
I want 80G Certificate from ito do I first need to take 12A certificate and then apply for 80G or simultaneously both can be done If yes do I need to do documentation twice
You can and you should apply for both 12a and 80g certificates at the same time.
Dear Lalit,
Thanks for the information.
1,Please let me know what are the registrations required other 10A and 80g for smooth running of trust.
2,Does the trust need to collect service tax for the fees collected in the educational institution run by trust
3,Can a trustee be removed from trust if he is not actively participating in trust activities
4,is a chairman and vice chairman mandatory for trust,if so is it mandatory that the vice chairman and chairman should be elected from trustees
1) Nothing else is required. 2) I can’t comment on that. 3) Yes. 4) No.
Sir I have registered my ngo in 2011 at state level and now in the last year i have registered it at national level with little addition in the name of NGO. Please help me in knowimg thet can i apply for 12a, FCRA, ACG, Income Tax exemptions, etc. papers now? or i have to wait for 3 years? Please help asap. As some one told me to do all these before completing one year of the registration of NGO
You can apply for 12a and 80g right now. For FCRA, you'll have to wait for three years.
Sir,
if NGO is registered last month under trust act, can I apply for regstratn under 12a and 80g immediately? Since its the year of inception i do not have audited accounts so how can I get such regsitration?
You can apply for 12a and 80g immediately. If the Trust is fresh, you don't need to give audited reports of previous years.
after 3 years of registration can v apply for 80g n 12a
Yes you can apply for 80g and 12a anytime after registration.
Respected Sir/Mam.
My name is Rajender Nim, I have registered a trust in this month. Now I want to know that what more registrations are need to have to run that trust.
It is said that this is very necessary to have trust registration with Act of 80G & 12A and FCRA Act I would like to know from you sir/mam directly that when I have to apply for Both registration.
Thanks.
plz reply
Rajender Nim.
You should apply for 12a and 80g right now.
Hi Lalit,
Very informative article. I had a quick question. If I donate money to a charity that is 80G registered, what document will they give me (and what stamps should it have) so that I can claim the tax relief when I file my tax returns?
Just want to know what it looks like from the donor's side.
Thanks!
Karthik
Hi Karthik, good question! Well, when you donate to a charity and you want to claim tax exemption, you should take a receipt for your donations. On the receipt 80g registration number should mentioned. This receipt is all you would need to claim tax exemption. If you are donating large amount, you may ask the charity to give you a photocopy of their 80g certificate (just to be sure that they indeed have such a valid certificate). You would get tax exemption on the 50% of the donated money.
Hi lalit I want to know that without any property I can register a trust and get 80 g form .
No, you can not (and should not) create a trust in the thin air! It must have a physical address and therefore a property as registered office of the trust is must.
Great, just would like to add a clear question which has been eating my mind. I can rent a property and get all the documents required as a tenant. will that be enough to form a Public trust.
Yes, you would need to get a No Objection Certificate (NOC) from your landlord.
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?
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.
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?.
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.
what is time limit to submit 12 A Form for tax credit after registration of NGO Society?
You can apply for 12A and 80G anytime after registration of Trust.
Thanx a lot Sir :)
Thanks Mr Lalit, for providing very useful tips.
Nicely Explained
Thank you Lalit for this wonderful site. I received much important and helpful information regarding opening a NGO.
Thanks :)
Mohit
It’s a pleasure for me, Mohit, to help people in doing social work. All the best! Hope to hear more from you on TechWelkin!
Very useful information about 80G exemption you provided. i am very happy. i hope your services are recognised very well. thank you
Thank you! I hope that more and more people get benefited from this information.
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.
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.
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.
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.
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?
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.
Hi, Lalit, Please help me in getting 80G as soon as possible.Is it possible to apply the same online?
It is not possible to apply for 80G online.
Yes u can file form 10A and 10G online, just u need to login to Income Tax site and go to efile option then go to prepare and submit online form (other than ITR) and fill required details and upload requisites scanned document.
Thank you for the information, Sumit!
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?
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.
we have new ragistred section 25 act company 3 month old. can we alligeble for ragistration of 80g certificate
Sorry Jaipal, I have no idea about Section 25 company procedures.
Yeah you are eligible for 80G
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
Hi Jabez, you can apply for 80G and 12A right after registration is complete.
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?
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.
Your post is dam good and keep sharing ………
Whether any specific clause is required in trust deed or any things which must be in trust deed for applying 80G certification
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.
Process of 12a,80g and fee detail plz reply.
The Trustee donete the to trust Rs. 5 Lacs, Can allowed deduction u/s 80 G or any other section of income tax act.
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.
pl help me. ngo. 80g. fee
For applying or for getting 80-G certificate is it necessary to have 12 A certificate.
No, it is not necessary. In fact you make application for both 80G and 12A at the same time.
My CA didnt apply both together and told 12 A is must before 80 G.
I got both the certificates in one go.