About 80G exemption certificate
NGO itself is registered under section 80 G, if a Donor is making the donation to the NGO, Donor will get exemption of 50% of donation amount from taxable income.
NGO has to obtain approval from income tax department under section 12A, which has a lifetime validity and then 80 G registration shall be granted by the Income tax department with validity for 2-3 years.
How an NGO eligible to apply for 80G Exemption Certificate?
NGO can apply for 12A certification and 80G certifications just after the registration of an NGO.
Eligibility of 80G certificate:
- NGO should have principal objective for charitable purposes and entire, incomes should be from donations.
- If in case, NGO has a business income then the trustee of an NGO should separate books of accounts to ensure that NGO should not divert donations received for the purpose of such business.
- Bylaws of the NGO must contain that spending the income or assets should be exclusively for the purpose of charity.
- NGO should not be formed with the benefit of a particular religious community or caste.
- Proper books of accounts of the NGO should be maintained, including its receipts and expenditures.
- Mandatory registration of NGO’s bye laws
Doc’s required for 80 G & 12A License:-
- Duly filled in Form 10G.
- Trust Deed, MOU of Section 8 company.
- NOC if registered office is on rent.
- PAN Card (NGO).
- Valid utility bills.
- Summary of welfare activities carried in the Last 3 years.
- Balance sheet and books of accounts for the last 3 years.
- List of donors along with their address and PAN Card Copy.
- List of governing board of trustees members with their contact details.
- Original Registration certificate of NGO.