80G is a section that comes under Income Tax Act which allows certain contributions or donations made to Charitable Trust, Non-Profit Organizations (NGOs), Section 8 companies, or organizations that are registered are eligible for tax exemptions. This deduction can be claimed by any taxpayer like individuals, companies, firms, or any other person.
Who are not eligible to avail exemption:
- Any contribution made to a trust which is situated outside India or we can say a foreign trust is not allowed to avail exemption under 80G.
- The contribution made to a private trust who is not registered under this section is not allowed to avail exemption.
- If you contribute to any political party then you are not allowed to avail the exemption.
Eligibility to take the certification:
To apply for 80G registration for getting eligible to take certification you have to follow certain rules and regulations as not every NGO/Trust is eligible for 80G certification. The rules are as follows:
- The donation received should not be misused for some other purposes even within the organization.
- Proper accounting should be followed by the organization. The accounting books and all transactions should be properly organized as they are required to keep as proof at the time of applying for 80G.
- You must segregate your business activities if any from the organizations’ activities.
- Registration Certificate.
- Trust Deed/ Society Deed/ MoA.
- Permanent Account Number(PAN).
- Copy of last 3 years Audit Reports, if any.
- Copy of 12A Certificate or Acknowledgement of application of 12A.
- NOC from the proprietor of the land where the registered office is situated
- Proof of welfare activities conducted by the organization.
- Copy of Electricity bill/ Water bill or House tax receipt.
Mode of Payment:
The payment should be made in the form of cheques or demand drafts. In case you made a cash contribution, it should be less than Rs.10,000 otherwise you are not eligible for tax exemption.
Steps for registration:
For registration you have to follow the give steps :
Step 1:Logon to the e-filing website link(www.incometaxindiaefiling.gov.in/home)
Step 2: Enter your credentials ( Id, Password and captcha code)
Step 3: Go on the E-file tab the list will appear now you have to select the Income-tax form column from that list.
Step 4: Now a window opens in that you have to click on a select form and select Form no. 10G- Application u/s 80G.
Step 5: Now you have to choose the type of submission, now you have to select Prepare and submit online.
Step 6: Now you have to fill all the required details in form 10G like Name, Address, Mobile Number, Email, etc.
Step 7: Fill Trustee/ Board member details and also fill the other details which are applicable according to your organization.
Step 8:Fill the details of the signing authority like Name, Address, Mobile Number, Email, etc.
Step 9: After completing the form now you can download a PDF format and check the correctness of details you entered.
Step 10: Upload all the documents scan copy which is mentioned earlier and click on the submit button.
Step 11: After uploading the form now you have to do the E-verification of form from the given options.
Step 12: All the steps are now completed after E-verification is done. You now get an Acknowledgement number, please note down it for future reference.
Now Assessing officer will review your application and documents you serve to them if there is any query regarding the documents he will ask for the same or he can ask for a personal visit by the trustee or the authorized person to clarify the same. When everything is resolved or if the assessing officer does not find any error then it will take 2-3 months to give the certificate of 80G.