80g.co
DESCRIPTION
A NGO can benefit salary impose exception by getting itself signed up and granting certain different conventions, yet such registration does not provide any profit to the individuals making gifts. The Earnings Tax Act 1961 has certain procurements which provide tax cuts to the "benefactors". All could as well profit the playing point of these procurements to attract prospective factors. Segment 80g is among such locations. In the event that gets itself signed up under section 80g then the specific or the company making a contribution to the NGO will get a derivation of 50 % from his/its assessable salary. Assuming that a NGO gets signed up under 12a and 80g, then just it is pertinent for any administration financing. A just recently enrolled NGO can also seek 80g enlistment. The accompanying archives required for 80g enlistment. 1. Copy of Registration certification of the NGO and its bye-laws. 2. Copies of Detail of activities because its creation or last 3 years whichever is less. 3. Copies of audited accounts of the institution/NGO since its creation or last 3 years whichever is less. 4.Copy of Pan Card. 5. Information of the members of the NGO.TRANSCRIPT
NGO CONSULTANCYAddress :-Room No-204 ,45-B , 1st Floor , Hasanpur Main Road , I.P. Extension , Patparganj , Delhi-110092
Contact :- 011-43557608 , 22235922 ,
#7838272423 Website: www.80g.co
What is 80g?Section 80g offers a tax
deduction for
donations to certain
prescribed funds and
charitable institutions.
Benefits of 80gThose organizations who donate to NGO under section 80g, they get deduction of 50% in their tax.
Eligible Assesses for 80gThis section is applicable to all Ngo, who make an eligible donation, whether an individual, HUF, NRI or a company.
Applying for 12a Certification
shall ensure the acceptance of the organization by Income Tax department. After getting the 12a certification the Ngo organization gets the perfect legal entity. The entire tax of Ngo is exempted.
Apply for 80g certificationBy showing their record of achievements in social welfare activities and by proving their service to the public. By getting this 80g certification, organization are privileged to provide tax exemption to the donors who donates their organization.
That is when an organization receives donation from public, individual or from a group it shall issue 80g tax exemption to the donor, where donors are entitled to donate from their 10% of gross total annual income. In that 10% of their donation, donors shall receive 10% tax exemption for their donation. So this type of certification, gives the power to the organization to encourage their donation to donate more .
What is the validity period of the registration under section 12A and 80G of Income Tax Act?
12A registration : Lifetime validity
80G registration : 1 to 3 years validity
1. If nonprofit Ngo organization is under going with any business, then they have to maintain a separate account and should not mix the donations they receive for social cause.
2. Other than charitable cause the
organization or its byelaw should not represent any other causes towards spending of such donation amounts or the assets and incomes of the nonprofit Ngo organization.
When you apply for 80g you shall check yourself for the fitness of 80g approval under the following factors.
3. The nonprofit Ngo organization shall
not be able to apply for 80g if it
support religion based, caste and
creeds based activity.
4. The nonprofit Ngo organization should
have the qualification of registration
which might have been registered
under Societies registration act 1860 or
registered under section 25 of
Companies act 1956.
5. Proper annual returns, accounting, book keeping should be in manner before applying for 80g.
6. If you have already received the 80g certificate, then proper renewal is must to hold such tax benefits.
Income tax department has the power to approve or reject such approval upon disqualification of the nonprofit organization or dissatisfaction found by the department towards the nonprofit Ngo organization activities.
Donations with 100% deduction without any qualifying limit .
1. Prime Minister’s National Relief Fund
2. National Defense Fund
3. Prime Minister’s Armenia Earthquake Relief Fund
4. The Africa (Public Contribution - India) Fund
5. The National Foundation for Communal Harmony
6. Approved university or educational institution of national eminence
7. The Maharashtra Chief Minister’s Earthquake Relief Fund
8. Donations made to Zila Saksharta Samitis.
9. The National Blood Transfusion Council or a State Blood Transfusion Council.
10. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.
Donations with 50% deduction without any qualifying limit1. Jawaharlal Nehru Memorial
Fund
2. Prime Minister’s Drought Relief Fund
3. National Children’s Fund
4. India Gandhi Memorial Trust
5. The Rajiv Gandhi Foundation
Deduction amount u/s. 80g. Donations paid to specified institutions qualify for tax deduction under section 80G but is subject to certain ceiling limits. Based on limits, we can broadly divide all eligible donations under section 80G into four categories:
a) 100% deduction without any qualifying limit (e.g., Prime Minister’s National Relief Fund).
b) 50% deduction without any qualifying limit (e.g. Indira Gandhi Memorial Trust).
c) 100% deduction subject to qualifying limit (e.g., an approved institution for promoting family planning).
d) 50% deduction subject to qualifying limit (e.g. An approved institution for charitable purpose other than promoting family planning).
NGO CONSULTANCY
Contact: 011- 22235922, 43557608
MOB:- 07838272423
Email :- [email protected]
Website:- www.80g.co