Blogs

India has always been at the forefront of inspiring compassion and goodwill. The government has a lot of influence because it rewards donations to worthy causes. Some of the most important tools used by the Income Tax Act, 1961 for this purpose are Section 80G. You have found the right place whether your organization is a non-governmental organization (NGO) seeking 80G registration or you are a provider seeking information. Darshan Corporate can help you make smart decisions and make the process easier.

What is 80G Registration?

The Income Tax Department gives a certification; 80G registration is for trusts, charity agencies, and NGOs. Section 80G of the Income Tax Act permits contributions to assert tax deductions after a frame receives this certification. This now not most effective evokes people and organizations to advise social concerns but also permits the business to increase recognition.

The 80G certification guarantees tax advantages on items and encourages participants to make certain their money is getting used for real charitable purposes. For non-governmental groups, it promotes donations by means of consider-constructing amongst capability sponsors.

Eligibility Criteria for 80G Registration

Before applying for 80G registration, an organization must meet specific eligibility requirements. Here are the key criteria:

• Registration Under Another Act: The organization must already be registered as a trust, society, or Section 8 company under the relevant acts like the Indian Trusts Act, Societies Registration Act, or Companies Act, 2013.
• Charitable Objectives: The primary purpose of the organization should be charitable in nature—such as promoting education, alleviating poverty, protecting the environment, or providing healthcare.
• No Profit Distribution: The enterprise must now not distribute any profits or income amongst its contributors.
• Proper Books of Accounts: Maintaining accurate monetary facts and books of bills is crucial.
• No Religious Activities: Organizations undertaking sports which might be totally non secular in nature are not eligible for 80G registration.
• Utilization of Funds: The enterprise need to make certain that at least eighty five% of its profits is applied for charitable purposes in India.

Benefits of 80G Registration

For NGOs, 80G registration is a critical step to enhance credibility and appeal to donors. Here are some blessings:

• Increased Donations: Helping groups providing tax deductions on their donations is more likely from donors.
• Tax Deduction for Donors: Under Section 80G, contributors could be entitled to deductions of up to 50% or 100% depending on the kind of gift.
• Enhanced Credibility: An 80G certificate assures funders and stakeholders of openness and conformance to government criteria, therefore building confidence.
• Corporate Contributions: Many businesses would want to donate to NGOs registered under 80G in order to meet their Corporate Social Responsibility (CSR) duties and claim deductions.

Documents Required for 80G Registration:

Usually, one requires the following paperwork to be registered for 80G:

• Trust Deed/Registration Certificate: Documentation proving the organization's registration as a Section 8 business, trust, or society.
• PAN Card: A copy of the organization’s PAN card.
• Financial Statements: Audited financial statements of the last three years.
• Activity Report: A detailed report of the organization's activities and achievements.
• List of Donors: A list of donors contributing to the organization.
• Bank Account Details: Information about the organization’s bank account.
• Board Member Details: Information about the trustees, members, or directors of the organization.

The Process of 80G Registration

1. Application Submission: File Form 10G online using the Income Tax Department portal and attach the necessary paperwork.
2. Verification by the Income Tax Department: The department will review the application and may request additional information.
3. Inspection: The department may conduct an inspection to verify the organization’s operations and adherence to eligibility criteria.
4. Grant of 80G Certificate: Upon approval, the department issues the 80G certificate. It typically lasts five years and requires renewal later.

Conclusion

Not just a certificate, 80G registration provides a channel to enable your company to acquire financial backing, confidence, and legitimacy. With 80G certification, NGOs can increase donations and have a greater impact on society. Darshan Corporate can help you achieve a flawless registration process. Start the process toward 80G registration by getting in touch with Darshan Corporate today!