Registration U/s 80G of the Income Tax Act, 1961
EXECUTIVE SUMMARY
Section 80G of the Income Tax Act,1961 permits donors to Societies Registered U/s 80G benefits of income tax exemption on their donation. This is one of the incentive provided for the people to donate for a noble cause.As such, all NGO should try and obtain registration under section 80G. This is one way in which the NGO can express their gratitude to the donors.
What is Section 80G
Section 80G of the Income Tax Act enables an Income Tax Payee to claim deduction for donation made by them to certain organisation. This deduction is subject to certain conditions.
The amount of deduction depends on-
a). To whom the donation has been made.
b). The amount of donation. They are exempted from 100% to 50% of the amount of donation.
ARE ALL DONATIONS ELIGIBLE U/S 80G:
No. All donations are not eligible for deduction of U/s 80G. Only those donations qualify which is made to certain funds, charitable institutions registered or mentioned under U/S 80G.
WHAT ARE THOSE INSTITUTIONS:
a). Several Institutions of National importance such as-
National Defence Fund.
Prime Minister’s National Relief Fund.
Prime Minister’s Drought Relief Fund etc.
Are expressly mentioned in the Section 80G. Any donation to them quality for deduction U/s 80G by the Donor.
b). The Chief Commissioner of Income Tax can approve institutions under this section. Earlier Religious Institutions were expressly not allowed to be registered U/s 80G. However, those organisation whose expense were not related to religious activities were allowed. Currently, those religious organisations which spent an amount not exceeding 5% of its gross income towards religious activities, are also eligible to be registered.
WHY SHOULD I GET REGISTERED?
You should get yourself registered, as it will help your donor to get some relief and they can be motivated for donations.
CAN WE BE REGISTERED:
All institutions are eligible for registration provided they fulfill the following conditions:-
- The Institutions should not spend any income or assets for any purpose other than a charitable purpose.
- The Institution should not be for the benefit of any particular religion, community, or caste.
- The Institution should maintain regular accounts.
- The Institution should be registered under the Societies Registration Act or any other similar welfare Act.
- Their expenses on religious activity should not exceed 5% of total income.
- They should submit their income tax return regularly.
HOW TO GET REGISTERED:
To get your society registered U/s 80G, You have to apply in form no. 10G.
- Form No. 10G requires the following important information:-
- Name and Address of the Institution.
- Name and Address of the office bearers.
- Income tax Particulars.
- Amount of surplus and mode of their investments.
This application should be accomplished with the following documents:-
- Copy of the registration granted U/s 12A or copy of notification issued U/s 10(23) or 12(23C) if any.
- A note on the activities of the institution for the last three years.
- Copy of the audited accounts for the Past three years.
- Memorandum and Rules & Regulations.
- Copy of the registration Certificate of the society.
What happens after submission of your application
It is normally practice that after submission of the above form with the Commissioner of Income Tax, the form is sent by him to your Assessing Officer. He in terms depute an Inspector to visit your place to inspect your books of accounts and other relevant details. Based on such an inspection, a report is sent to the Commissioner by the Assessing Officer. This report is the most important element in the entire process. After submission of such inspection report, an order is received from the Commissioner granting the registration U/s 80G. In case, the Income Tax Authority decides not to allow registration of your Society a notice will be sent indicating the intention of the department and on receipt of which you can submit your comments or objections.
This registration is normally allowed for a period of two to three years. It has been further provided that commissioner will make his decisions within six months of the submission of application.
OBLIGATION AFTER REGISTRATION:
Once your society is registered, there are certain obligations, which is required to be followed.This registration enables donors of your society, a deduction on the amount donated by them to your society. To enable them to claim such exemption, the receipt issued by you should contain reference of approval commissioner order U/s 80G and preferably a copy of such approval should be given to the donors. The society should also submit its regular Income Tax Return in time even though, it is NIL.
RENEWAL OF APPROVAL
As mentioned earlier approval U/S 80G is allowed for a specific period of time. Hence, it is essential that you submit a fresh application requesting for renewal of such approval. Such renewal application should be made at least six months before the expiry of the current approval. This will ensure that there is no disruption in the availability of exemption.
OBLIGATION OR CAUTION BY DONORS:
In case, a donor is giving donation to a society which claim that it is registered U/s 80G, the donors should ensure that:
- He gets a proper receipt for his donation.
- Such receipt indicates that this society is registered U/s 80G and reference number of approval with date of expiry is mentioned on the receipt.
- He should try to obtain a copy of the approval from the society.
In case, these documents are not submitted by him along with the Income Tax Return, his claim of deduction may not be entertained by the Income Tax Department.
CONCLUSION
For the donor of the society Section 80G provides some relief by reducing their tax liability. wherever, society is entitled to registration U/s 80G, they should obtain such registration and intimate the same to the donors.
Related posts:
Sir,
Ammanni Charitable Trust is a charitable trust filed income tax from 2001 to 2009
we wanted to apply for 80G
What is the proceedure
keshava kumar.N
9845366097
You have to apply to the Commissioner of your area in form no. 10G, The details are mentioned in the story.
Sir, I am Accountant of Ideal Educational Movement, I Required 80 G notification of non renewal announced by Fianance Minister in budget 2010
we had 80 G exumption till 31 march 2010. Do we need to apply for continuation or it will get automatically renewed as per the new changes ?
You are suppose to apply again.
my Trust is a charitable trust birth of the trust is on 1st of October in 2010 we wanted to apply for 80G . can you tell me the procedure how to register in 80g .
m.i.baig
09958477786
Sir,
We were told by the concerned IT office that we need not file the renewal for 80g which was valid till March 2010.Please clarify
Anil Kumar
As per a new circular no. 7/2010 dated 27-10-2010, those organisation who has been granted 80G exemption, subsequent to 01-10-2009 and those whose registration is valid as on 01-10-2009, need not apply again.
complete circular is available at:
http://www.taxmann.com/TaxmannFlashes/flashst29-10-10_1.htm
Please search on our site for the details.
WE WANT 80G REGISTRATION. WE ARE FROM A NGO. PLEASE SUGGEST US.
Our organization’s 80G is expiring on 2011. Is it neccessary to renew the 80G again. Please tell us in details
No.It is covered under automatic renewal mode.
You may search on this site for the relevant topic.
We have 80G(5)(vi) and expiring on 2011, please tell us do we need to renew it??????
Dear Sir,
I have a Society in Howrah.Which is registered in 7th of sep.2010. So is our organization eligible for registering for 80G.being so new. Please guide us.
Thank You
Yes. You have to apply to your officer with all the details and convince him about your intentions. However, it is better if you apply after March 2011 with atleast one year financials.
No. It is covered by automatic renewal route.
Our Trust is a charitable trust birth of the trust (Regd.No.7953 dt.30.07.2010), we wanted to apply for 80G . can you tell me the procedure how to register in 80g .
A.K.Passy
Administrator
09971796526
Our Trust is a charitable trust registered under (Regd.No.7953 dt.30.07.2010), we wanted to apply for 80G . can you tell me the procedure how to register in 80g .
A.K.Passy
Administrator
09971796526
Please serch on this site.
Dear Sir,
I have a Society in vizianagaram Which is registered in 19th of jun.2009. So is our organization eligible for
Yes.
I was looking for a format for receipt to be issued by a Non-Profit registered u/s 80G(5)(vi).
my ngo is registerd under govt regd act i want 80g registration pls help me vijay tiwari faizabad u.p mob 09453571233
My NGO name is SAMATA Seva Samithi. It was registered under Societies Registration Act 2001 on 6th December 2010. Is it elegible for got 80G. Please suggest
I HAVE SOCITY IS REGISTERD UNDER GOVT REGD I WANT 80g REGD PLZ HELP ME SAILESH DELHI MOB 9718174743
Yes. There should be no issue. But it is better to apply after 31st March 2011, with one year financials.
how ca i apply plz tell me sailesh
This is definitely a blog worth following. Youve got a great deal to say about this subject, and so much knowledge. I think that you know how to make people listen to what you have to say, especially with an issue thats so important. Im glad to know this blog. Two big thumbs up, man!:)
Our organization’s 80G is expiring on 2011. Is it neccessary to renew the 80G again. Please tell us in details.
from
Kunal
Not. Circular published in the web site. Please search.
SUPPOSE I DONATE RS5000 UNDER SECTION 80G(5)(VI) OF I.T. ACT 1961, HOW MUCH EXEMPTION SHALL I GET OUT OF RS5000.
Sir,
We had registered our trust under Mumbai Trust Act 1960, in 2010 dec, is this eligible for 80G registration?????
I have a new trust can i apply for a 80G Plz Tell me
Dear Sir,
We have registered our TRUST on 29.02.2008 and so far We have not registered With Income Tax and not yet started charitable activities through Trust and not maintained books of accounts nor filed IT returns since 3 years.
Hence, We Want to raise donations from domestic as Well as through foreign contacts to do social activities through charity for poor etc. Are We eligible for 80G and FCR certificates and What is the procedure and Whom to approach.
Tks & Brgds,
Jeremi
My NGO got exemption under 80G with effect from 01.04.2006 to 31.3.2009. Please guide me whether my organisation requires renewal of 80G inspite of the new Act.
Can an unregistered society can get IT exemption for the funds received through its FCR accounts?
We have a school which is run by a society. now we want to upgrade our education system . Presently our school is follwing RTE Act and we do have free education facility for poor girls too.
Do let us know from where we can get funds and what we have to do .
Dear Sir,
We have newly registered our TRUST on July’2011 and how we get the 12aa and also 80G certificate, what is the procedure and Whom to approach. also we want know what is the minimum period of apply together or indivisual etc. ?
Thanks & Regards,
Pawan
My organization is registered as an educational NGO in MP (Adharshila Shiksha Samiti). We run a school for underprivileged children in MP.
However we also charge a nominal fee of Rs.50-100 per month from parents who can afford it, and who do not belong to ST or SC category.
Our request for registration u/s 80G was rejected last year by the IT Commissioner on grounds that our school charges a fee. We maintain a detailed account of the fees received, and these are not used for any commercial or profit purposes. In fact, even the children who pay fees are subsidized by the NGO, since their costs are not fully covered by the fees. We do not divert the donations received for charitable purpose for any commercial activities.
My hunch is that our application was rejected because the IT deptt. officers who came for verification to the school asked us for a bribe and we did not pay. I’ll appreciate your advise on how to respond to the rejection by the Commissioner.
Asmita Kabra
President, Adharshila
Dear Sir,
We Run a ngo help to poor and needy peoples, help for study to poor students, welfare programme for physically handicapped pesons, saminars for addiction less community in school and collages..kindly guid us for registration in 80g.
our society is registed under socitey registation act.
Respected Sir,
I want to know whether there is any time requirement for registration U/s. 80G.(i.e. if i’ve registered trust as on 01.04.2011 than can i apply for 80G registration at any time or should i wait for 3 years as it is compulsory for getting FCRA registration)
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Dear Sir,
I hv registered charitable trust “Sanjeevani Bahudeshiya Sevabhavi Sanstha, Aurangabad (M.S.)”on 11.11.2010 for social welfare and needy poor people.Can i get approval certification of 80g, if i can then how shoul i apply for the same, plz gv details.
Thanks!
Dr. Rahul Kale
Cell-09226836711
sir,
i have registered society”social welfare and rural development society”lucknow.on 08-01-2010.for provied moral education,physical education in rural areas children…..Can i get approval certification of 80g, if i can then how shoul i apply for the same, plz gv details.
thanks….
sateesh tiwari
cell:- 09554959231
i required the registration 80g & 12a our org
Dear Sir,
our NGO registered under 80 G and valid till 31.3.2010. Do i need to renewal it. I heard that there is no need of renewal of NGOs under 80G.
Clarify me.
Thanks
mr bhim kumar
machhuara yuva manch
bokaro, jharkhand
send me a not renewal notification copy to my e-mail
machhuara@yahoo.co.in
thank u sir