Get your NGO

Registered Under Section 80G(5)

Are you running a non profitable organization which is involved in charitable activities? Register under section 80G(5) & let the donors of your NGO / Trust / Institutions avail the financial benefits from their taxable income. Register your trust or organisation under Section 80G(5) of the Income Tax Act with Ebizfiling.com at just INR 3,999/- only.

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What is section 80G(5)?

All you need to know about the section 80G(5)?

Doing charity is a noble task. Not just the God but the Income Tax Department acknowledges this fact. Therefore, you get more than just good karma for donating your income to charitable institutions. Section 80G of the Income Tax Act offers a tax deduction on contributions made to certain charitable institutions prescribed under the Income Tax Act, 1961. Section 80G registration of the Income Tax Act primarily deals with donations made towards charity while Section 80G(5) registration deals with the limitations on tax exemption on donations made under Section 80G.

 

Registration under section 80G(5) of the Income Tax Act provides benefits to NGOs. If NGO has 80G(5) certificate with them, donor gets financial benefit in his/her taxable amount of their income. If an NGO gets itself registered under section 80G(5) 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(5) Certificate, NGO can attract more donors.

 

If an NGO gets itself registered under section 80G(5) then the person or organisation making a donation to the NGO will get a deduction of 50% from his / its taxable income. 

New Compliances introduced in Budget 2020 for Section 12A and 80G

According to the new Compliance with regards to section 12A and section 12AA, All NGOs presently having exemption u/s 12AA of the IT Act shall have to reapply for the same by Dec 31, 2020. and shall have to obtain new registration u/s 12AB.

Latest Update

The new compliances under the mentioned Sections i.e under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Income Tax were to be completed till 31st August, 2020 which was extended till 31st December 2020. Then again the same scheme was extended to 01.04.2021 and 30th June 2021 and 31st August respectively.

 

Now looking in to the current situation the CBDT has again extended the due date for the application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc. has been extended till 31st March, 2022 and hence now all existing trust have to re-register themselves on or before 31.03.2022.

Difference between Section 12AA and newly introduced Section 12AB

 

Section 12 AA

Section 12AB

What NGOs are required to do?

The benefits of section 80G was available to all the NGOs registered under Section 12AA for the exemptions in the donations recieved by the NGOs. These benefits were available on a continuous basis.

Already registered NGOs u/s 12AA will have to reapply for the same and shall have to obtain new registration u/s 12AB

The NGOs are required to reapply before 31st Decmeber, 2020 and get new registration u/s 12AA

Exemptions are valid for Lifetime

Already exempted NGOs will have a 5 year validity. While the new registrations will be provided with 3 years provisional registration

NGOs shall have to provide evidence to and convince Income Tax authorities of the bonafides of their activities every 5 years (3 years in case of New registrations), in order to retain their tax exemption

Details required only for overseas contributions/ donations

Donor-wise details to be maintained and all donors will have to be given a certificate

NGOs will have to maintain Administrative records.

80G benefits available to donors for exempt NGOs on a stable basis

80G donations now exposed to uncertainty.

 

Condition for registration under section 80G(5) online / How to get approval u/s 80G(5) for Charitable Trust / Society  / NGO:

 

For approval under section 80G(5) the following conditions mentioned in Section 80G(5) vi are to be fulfilled:

 

  • The NGO should not have any income which are not exempted, such as business income. If, 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 purposes.
  • The NGO shall not work for the benefit of particular religious community or caste.
  • The NGO shall maintain regular accounts of its receipts & expenditures.
  • Donor-wise details to be maintained and all donors will have to be given a certificate.
  • Tax deductions under section 80G will not be available to donors who opt for reduced rate of tax.

 

EbizFiling.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Registering Non-profit Organisation under section 80G(5) is easy, seamless, cheapest and quickest with EbizFiling.com! Apart from this ebizfiling.com also helps in registration of trust / NGO / NPO under Section 12A. You may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation.

Fees for Section 80G 5 registration

Choose Your Package

ESSENTIAL

3999/-

(All Inclusive)

  • Section 80G registration Application for a Trust

ENHANCED

7999/-

(All Inclusive)

  • Section 80G registration Application for a Trust
  • Section 12AB registration Application for a Trust

ULTIMATE

9299/-

(All Inclusive)

  • Section 80G registration Application for a Trust
  • Section 12AB registration Application for a Trust
  • 1 DSC Application Class III Individual 2 Year Validity

New terms of registration and renewal of the registration under section 80G

  • All the existing registered trusts under the erstwhile section 80G, 12A or section 12AA would move to new provision section 12AB.
  • Newly established trusts and institutions applying to income tax for registration for the very first time will be given provisional registration for three years.
  • The provisional registration will be valid for three years.
  • Prior to 6 months from the completion of three years provisional registration, an application for renewal of provisional registration or rather registration has to be made.
  • After processing your application, your trust or institution’s registration under section 12AA and 80G may be re validated by income tax for a period of 5 years
  • Every charitable trust or institution registered u/s 80G shall be required to submit a statement of donations received in such form & manner as may be prescribed & the benefit of 80G shall be available to donors on the basis of information relating to donation furnished by the corresponding charitable trust or institution.
  • Tax deductions under section 80G will not be available to donors (individuals or companies) who opt for reduced rate of tax.

Documents required for Registration under Section 80G(5)

  • Company / Trust / Society registration certificate
  • Bye laws of this company, AOA, MOA copies
  • Details of activities since its incorporation
  • Digital signature of one of the directors/trustees
  • Audit reports for all financial years since incorporation
  • Audited Financials for all financial years since incorporation
  • Section 12A Certificate

Procedure for registration under Section 80G(5) online

 

5 Easy Steps

1

Fill in simple Checklist

2

Verification of documents

3

Online Application

4

Responding to queries

5

You get your 80G(5) registration

Fill in a Simple Checklist

A Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for processing for Income Tax Section 80G 5 registration application. Our team of experts will verify the documents provided by you and take the procedure further.

Application to the Commissioner


Once our expert team completes verification process of your documents, the team will proceed with registration formalities. All throughout the process, your dedicated Compliance Manager will keep you updated on the progress of registration of your NGO / Trust under section 80G(5). We will apply for Section 80G(5) Registration online.

Registration U/s 80G(5)

Once we applied for the registration u/s 80G(5), after satisfying the Commissioner about the objects or the trust of institution, he will pass an order in writing registering the trust or institution of Non Profit Organization / Non Governmental Organization. Note that if he is dissatisfied, he may refuse to register the trust / NGO  / NPO after hearing the applicant.

FAQs_Ebizfiling

FAQs on registration Under section 80G(5):

Get answers to all your queries.

  • What is section 80G(5) of the Income Tax Act. ?

    If an organization has obtained certification under section 80G(5) of the 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.

  • Where to apply for registration under section 80G(5) of the Income Tax Act?

    Application for registration under section 8OG can be applied to the Commissioner of Income tax (Exemption) having jurisdiction over the institution.

  • Can both the applications under section 12A and 80G of the Income Tax Act be applied together?

    Both applications need to be given separately. Note that 80G application needs to be supported with 12A registration certificate. Hence, it is imperative  that you obtain 12A first.

  • Can both the applications under section 12A and 80G(5) of the Income Tax Act be applied together?

    Both applications need to be given separately. Note that 80G application needs to be supported with 12A registration certificate. Hence, it is imperative that you obtain 12A first.

  • Generally what is the timeline for getting registration under section 80G(5) of the Income Tax Act?

    If application for registration under section 80G(5) will be applied through NGO Factory, it should take 3 to 4 months.

  • What is the validity period of the registration under section 80G(5) of the Income Tax Act?

    Once registered, the validity period for 80G(5) registration would be 1 to 3 years.

  • What application forms are being used for applying for registration under section 80G(5) of the Income Tax Act?

    For new application and renewal of registration under section 80G(5) of the Income Tax Act Form 10G would be used.

  • Who can avail the benefit?

    Deduction under this section is not restricted to any specific category of persons/ assesses. This deduction can be availed by any assesses who makes a donation to the notified institutions and the relief funds set up by the government.

  • What is difference between 12A and 80G(5)?

    Under Section 12A, NGO can avail income tax exemption by getting itself registered and complying with certain other formalities under section 80G(5), Donee will get benefit of tax exemption of amount given as donation.

  • Still have Confusion?

    Don’t worry! Our experts will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolvedd. Write to us at info@ebizzfiling.com or call us @+91 9643 203 209.

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