80g | 12a

Structuring Of Ngo 

A Non Governmental Organization (Ngo) is observed to be a cooperation of persons or a collection of people. Such form with a distinct name and destination may be an enrolled one or unregistered one. Lawful character is procured just after enlistment (joining) of the cooperation of persons under any of the appropriate laws.

Relevant Laws 

A companionship of persons with non-benefit rationale may be enlisted under any of the taking after Indian Acts:

1. as a Charitable Trust

INTRODUCTION OF 80G

Section 80g of the Income Tax Act, 1961 allows benefactors to Societies Registered U/s 80g profits of salary duty exclusion on their gift. This is one of the motivation accommodated the individuals to give for a honorable cause. As such, all Ngo might as well attempt and get enlistment under segment 80g. This is restricted in which the Ngo can express their appreciation to the benefactors.

Income Tax : Deduction U/s 80 G of Income Tax Act 1961

Registration under section 80G of Income Tax Act provides benefit to NGOs. If NGO has 80G certificate with them, donor gets financial benefit in his/her taxable amount of their income. If an NGO gets itself registered under section 80G then the person or the organization making a donation to the NGO will get a deduction of 50% from his/its taxable income. By availing 80G Certificate, NGO can attract more donors.

 INTRODUCTION OF NGO 

There are few conditions to be fulfilled under the section 80G:

In this Act, unless the context otherwise requires, - (1) "Advance tax" means the advance tax payable in accordance with the provisions of Chapter XVII-C; 

(1A) "Agricultural income" means - (a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes;

(b) Any income derived from such land by - (i) Agriculture; or 

(1) Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person :

(1) Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person :