Apply Online for 80G Registration

Registering your NGO under Section 80G can significantly enhance your ability to attract donors by offering them the benefit of tax deductions on their contributions. This financial incentive makes donating to your organisation more appealing and can boost your fundraising efforts. If you are a charitable organisation seeking 80G registration, IndiaFilings is here to help. Our team can guide you through the 80G registration process, ensuring a smooth and efficient experience from start to finish.

What is Section 80G?

Section 80G of the Income Tax Act 1961 is a provision that allows individuals and organisations to claim tax deductions on donations made to eligible charitable organisations. When an organisation obtains an 80G certificate, it has been registered and recognised by the Income Tax Department as eligible to receive donations that qualify for tax exemption. Donors who contribute to such organisations can claim deductions on their taxable income for the amount donated up to a specified limit, thereby reducing their tax liability and encouraging charitable giving.

What is 80G registration?

80G registration enables donors to claim tax deductions on donations made to eligible charitable organisations.

The registration grants tax benefits to both the donor and the recipient. Charitable organisations registered under Section 80G are entitled to receive tax-deductible donations, and donors can claim deductions on the amount donated while filing their income tax returns.

The Finance Act 2020 introduced amendments to India's 80G registration provisions. These amendments include the requirement for organizations with 80G registration to file annual returns, verification of donees by the Income Tax Department, and the possibility of reassessing and revoking registrations for non-compliance.  

Importance of 80G Registration 

80G Registration under the Income Tax Act allows donors, whether individuals, companies, associations, or organisations, to claim deductions on their total income for donations to an NGO. This exemption is provided under Section 80G of the Income Tax Act, stipulating that the donated amount must not exceed ten per cent of the donor's gross total income.

Donations must be made in monetary form, and only financial transactions are considered valid under this section.  When issuing receipts for donations, NGOs must include the number and date of the 80G certificate, indicating the validity period of the certificate.

Eligibility Criteria for 80G Registration Certification

To qualify for 80G registration, charitable organisations must meet the following criteria:

• Legal Structure: The organization must be registered under a recognized legal structure in India, such as a trust, society, or non-profit company.
• Non-Profit Objective: The organisation's primary focus should be charitable activities, not profit generation.
• Proper Documentation: The organization must maintain accurate accounting records and have its accounts audited annually to ensure compliance with income tax regulations.
• Compliance with Statutory Requirements: To be eligible for 80 G registration, the organization must adhere to all requirements under Sections 11 and 12 of the Income Tax Act.
• Non-Exempt Business Income: The organization should not have any non-exempt income from business activities. If there is business income, it must maintain separate accounting records, and donations should only be used for charitable purposes.
• Non-Exclusive Focus: The organization should not focus exclusively on benefiting a specific religious community or caste.
• Darpan Portal Registration: For registration or re-validation, obtaining a registration number from the Darpan portal of Niti Aayog is mandatory, especially if the organisation receives or plans to receive grants or assistance from the Central or State Government.
• Audit Reports: If the NGO's total income exceeds the minimum threshold specified under the Income Tax Act, its accounts must be audited by a chartered accountant.
• Utilization of Funds: At least 85% of the income should be spent on the organizationâ??s objectives within India to ensure the funds are used effectively for charitable purposes.

Benefits of 80G Registration

Section 80G Registration Offers Many Benefits, listed as follows:

• Tax Deductions: Donors can claim tax deductions of up to 50% or 100% of their donations, depending on the type of charitable organization.
• Enhanced Credibility: Organizations with 80G registration are viewed as more trustworthy, making it easier to attract donors.
• Increased Donations: The tax benefits make these organisations more attractive to donors, leading to more donations from both individuals and businesses.
• Wider Reach: With 80G registration, charities can connect with a larger number of potential donors, increasing their ability to raise funds and support their causes.
• Compliance and Transparency: Registered under 80G ensures that the organisation meets legal standards and operates transparently.

Documents Required for 80G Registration

To get your 80G certificate, the following documents are mandatory along with Form 10A/10G:

• Trust deed/society registration certificate/section 8 company certificate
• Memorandum of Association and Articles of Association (for section 8 companies only)
• PAN card of the organisation
• Bank account statement of the organization
• Audited accounts of the organization for the last three years
• List of trustees/members/directors of the organization
• List of activities carried out by the organization

80G Registration Validity and Renewal

The initial provisional registration under Section 80G is valid for three years. After this period, organizations must renew their registration. Following a successful renewal, the registration is valid for an additional five years.

To continue enjoying the benefits of 80G registration, organisations must renew it every five years thereafter.  

80g registration Process

The process for obtaining 80G registration for NGOs can be approached in two ways, depending on whether the organisation is a new entrant or seeking renewal of an existing provisional registration. 

Process for Section 80g Provisional Registration

To receive an 80G Registration Certificate, follow these four basic steps:

Step 1: Application Submission

Submit an application in Form No. 10A for 80G registration to the Commissioner of the Income Tax Department in the organisation's jurisdictional region.

Step 2: Document Examination

Once the application and documents are submitted, the Income Tax Department will thoroughly examine the provided materials.

Step 3: Additional Information (if required)

If the officials require additional information, they will request further documents from you. You must submit the requested documents within the specified time frame.

Step 4: Certification Issuance

If the department is satisfied with verifying the papers and information presented, the Commissioner will issue the 80G Certificate to the organisation.

Note: The validity of the 80g provisional registration starts from the Assessment Year for which the organisation sought the registration. The renewal application should be submitted:

• At least six months before the end of the current validity period, or
• Within six months from the commencement of their activities, whichever comes first.

The Transition from 80g Provisional Registration to Regular 80G Registration: Before the provisional registration expires, NGOs must apply for regular registration, which is valid for five years. This stage involves a detailed review of the NGOâ??s activities and financial records.

Process for Regular 80g Registration

• Submit Form 10G: NGOs must complete Form 10G and submit it with the required documents to the Income Tax Department.
• Inspection: The Income Tax Officer (ITO) may conduct an on-site inspection to verify the NGOâ??s information.
• Approval: Upon satisfactory review, the NGO will receive regular 80G registration, valid for five years.

Streamline 80G Registration with IndiaFilings!

Simplify your 80G registration process with IndiaFilings. Our experts guide you through each step, from application submission to getting an 80 G certificate, ensuring a smooth and efficient experience. Let us handle the complexities while you focus on your charitable activities.