80g | 12a

The NGO should not have any income which are not exempted, such as business income.

If an NGO gets itself registered under section 80G then the person or the organisation making a donation to the NGO will get a deduction of 50% from his/its taxable income. The NGO has to apply in Form No. 10G As per Annexure - 29 to the Commissioner of Income Tax for such registration. Normally this approval is granted for 2-3 years.

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.

Section 80G of the  Act of 1961 provide tax relief to the Citizens of India on the amounts donated as contributions to Approved Charitable Organizations.

The new financial year has just started. All the Salaried employees among us would be busy submitting investment declarations or proposed investments to their respective employers to avail tax exemptions.

Let us take an illustration. Mr. X an individual and M/s. Y Pvt. Ltd., a Company both give donation of Rs. 1,00,000/- to a NGO called Satyakaam. The total income for the A.Y. year 2011-2012 of both Mr. X and Ms. Y Pvt. Ltd. is Rs. 3,00,000/-. The tax benefit would be as shown in the table:

Donations paid to specified institutions qualify for tax deductionunder section 80G but is subject to certain ceiling limits. Based on limits, we can broadly divide all eligible donations under section 80G into four categories:

Deduction if donation deducted from Salary and donation receipt certificate is on the name of employer

Validity of Registration U/s. 80G  on the date of Donation