12A

Income of an organization is exempted if NGO has 12A registration. All income shall not be taxable after 12A registration. This is one time registration. If the NGO is not registered, income tax is payable on surplus during the year. This is one time registration.

Exemption under section 80G exempt a donor from paying Income Tax. If the public charitable organization (NGO) has 80Gcertificate then the donors of that organization would not need to pay tax on the amount of money they donate to the organization.

multi state cooperative society

Though donations to charitable institutions is a noble cause, there is an upper limit on how much amount we donate can be used for tax exemptions. The general rule is "50% of the amount donated subject to a maximum of 10% of the Total Taxable Income of the Individual can be donated and exempted under Section 80G of the Indian Income Tax act of 1961". A point to note is that, any donations done beyond the allowed limit is not considered for tax purposes. However, there are some donations, where this limit of 50% of the donation does not apply.

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. One of the less commonly used sections of our Income Tax is Section 80G. Not many of us know about this Section and most importantly most of us don't even use it. The purpose of this article is to throw some light on this section.

Application for registration of an organisation under the Clause 12A of Income Tax Act is required in a prescribed Form for seeking charitable status from the Department of Income Tax. the provision of the said Clause read.

fcra, 80g,12a

There are few conditions to be fulfilled under the section 80G: The NGO should not have any income which are not exempted, such as business income. lf, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business. The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than charitable. The NGO is not working for the benefit of particular religious community or caste.

section 12A

Income of an organization is exempted if NGO has 12A registration. All income shall not be taxable after 12A registration. This is one time registration.

section 80G

If an organization has obtained certification under section 80G of Income Tax Act then donors of that NGO can claim exemption from Income Tax. This is not one time registration. This needs to get renewed after validity period.

ngo registration

Section 80G provides a tax deduction for donations to certain funds and charitable institutions. Deduction under section 80G is available to all who make an eligible donation. Donations made in cash or cheque are only eligible for deductions i.e., donations made in kind like in the form of food, clothing etc are not eligible. Donation may be paid either out of taxable or exempted income.

multi state cooperative society

Ensure that the fund /institution is approved by the Income tax department for deduction under this section. For check this, please ask for a photocopy of 80G eligibility certificate from the fund/institution. Always ensure that the Receipt issued by the fund /institution carries the Name and address of the trust, your name, registration number issued to the trust and the validity period of the Registration. Also make sure to tally the the amount written in words and in figures.

ngo amendment

As per clarification provided on Income Tax department website, deduction under Section 80G can be claimed through employer only in case of contribution to the institutions specified. No deduction should be allowed by the DDO from the salary income in respect of any donations made for charitable purposes. The tax relief on such donations as admissible u/s80G will have to be claimed by the taxpayer in the return of income. However, DDO, on due verification, may allow donations to the following bodies to the extent of 50% of the contribution.