80g Certificate Registrations for Tax Exemption

It is required to get the 80G Certificates and 12A certificate to obtain the tax exemptions for the Non-Governmental Organization (NGO) in India. These certificates are issued by the Income Tax Authority. In this article, we will tell you about the 80G Certificate.

What is 80G Certificate?

80G Certificate gives the tax exemption to the donor on donation. It is not required for the holder of the 80G Certificate to pay tax on 50% of the donated amount.

Now next question strike in the mind is “How to get 80G Certificate?”

To get 80G Certificate, NGO has to file an application in Form 10G. The applicant can download this form from the website of the Income Tax Department. It is valid for a limited period of time which is required to be renewed from time to time.

There are certain requirements for obtaining an 80G Certificate such as:

• In case of any business income of NGO, separate books of accounts must be there and donations must not be diverted.
•  The object of the NGOs should not contain any provision regarding the use of income or assets for purposes other than the object defined in deed or MOA.
• It should not be for the benefit of any particular religious community.
• There should be proper maintenance of its accounts of its receipts & expenditures.
• NGO must be registered under any of the following:

o    Societies Registration Act 1860,

o    Indian Trusts Act 1882 or

o    Section 8 of the Companies Act 2013.

• Members are not taking any undue benefit from NGOs.

We hope that it gave you helpful information, further in case of any query you may contact us.