What is 80G?
A donor of a Charitable Trust, Society, NGO or other charitable entity is entitled to get tax benefit under section 80G of the income tax act as deduction from his income on account of the donation made by him.
Who is required to obtain registration u/s 80G?
The trust or charitable institutions should register themselves under Section 80G to enable the donors who contribute to them to avail certain tax benefits on their contributions. A NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations.
Eligibility
80G and 12A registrations apply only to NGOs and Charitable Organizations if they fulfil the following conditions:
- They must not have any income generated from a business.
- They should either be a charitable trust or a registered society.
- Also, such organizations should not be using their assets or income for any other purpose other than making charity.
- Furthermore, they must maintain a regular book of accounts in favor of their receipts and expenses
- The trustees or any other body governing the organization should not be involved in deriving any undue benefits from these funds
- They should not be working for the benefit of any particular caste or religion
- Also, in the case of business-related income, the organization should maintain a separate book of accounts.
Documents required for 80G registration
The following documents are required for 80G approval:
- MoA and Registration certificate in case of Section 8 companies and Societies and a Trust Deed in case of a Trust
- NOC from the proprietor of the land where the registered office is situated.
- Copy of the Pan Card of the Trust/Institution
- Copy of electricity bill, house tax receipt, or water bill
- The list of the welfare activities being carried out & the progress report of the last three years.
- Form 10G
Procedure for 80G registration
The prior requirement for getting registration under section 80G is obtaining registration under Section 12A. 80G Registration Procedure Consists of The following Steps:
- The application for approval of any institution shall be made in form no. 10G which shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assesse
- Form No. 10G shall be furnished electronically,—
- under digital signature, if the return of income is required to be furnished under digital signature; or
- through electronic verification code in a case not covered under clause (i).
- The Principal Commissioner or Commissioner may call for such further documents or information from applicant or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of the applicant.
- Where the Principal Commissioner or Commissioner is satisfied that one or more of the conditions laid down in section 80G(5) are not fulfilled, he shall record the reasons in writing and reject the application for approval after giving the applicant an opportunity of being heard.
Forms and Timelines
| Category | Forms | Timeline to make application |
| Trusts already approved/registered and their approval/registration is continuing an on 01-04-2021. | 10A | On or before 31-03-2022 |
| Trusts making application for provisional registration/approval | 10A | 1 month before the commencement |
| Conversion of provisional registration into regular registration | 10AB | At least 6 months before the expiry or within 6 months of commencement of its activities, whichever is earlier |
| Renewal of registration/approval after five year said registration period. | 10AB | At least 6 months prior to expiry of the said registration period |
Author
Deepthi Reddy
