Are you running a non-profit organization involved in charitable activities? Get your organization registered under ’80G registration’ to allow your donors to benefit from tax deductions on their taxable income. Register your trust or organization under ’80G registration’ with Ebizfiling.com at justINR 3,999/- only.
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Doing charity is a noble task. Not only is it recognized by the divine, but it is also acknowledged by the Income Tax Department. With 80G registration under the Income Tax Act, you gain more than just good karma from donating to charitable institutions. Section 80G of the Income Tax Act provides a tax deduction for contributions to certain prescribed charitable institutions. Specifically, 80G registration focuses on donations made for charitable purposes, while Section 80G(5) registration addresses the limitations on tax exemptions for donations made under Section 80G.
Registration under 80G(5) of the Income Tax Act offers benefits to NGOs. When an NGO possesses an 80G registration certificate, donors receive a financial benefit by reducing their taxable income. If an NGO obtains 80G registration, donors can claim a 50% deduction from their taxable income. By securing 80G registration, an 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.
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.
Also Read: 12A Registration
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.
(All Inclusive)
(All Inclusive)
(All Inclusive)
Donor Tax Benefits: Donations made to organizations registered under section 80G are eligible for donor tax deductions. This makes it more attractive for individuals and corporations to contribute as they can claim deductions of up to 50% of the amount donated (with certain limits).
Enhanced Fundraising: With 80G status, an organization can increase its fundraising capacity because potential donors are more likely to donate if they can receive tax benefits.
Better visibility: Registering under 80G can improve the visibility and credibility of an organization and potentially attract more support and resources.
Government and Corporate Funding: Many government and corporate funding programs require or prefer that the recipient organization be 80G registered, so this status can open the door to other funding opportunities.
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.
For approval under section 80G(5) the following conditions mentioned in Section 80G(5) vi are to be fulfilled:
Section 12 AA |
Section 12AB |
What NGOs are required to do? |
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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 |
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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 |
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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. |
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80G benefits available to donors for exempt NGOs on a stable basis |
80G donations now exposed to uncertainty. |
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5 Easy Steps
Fill in simple Checklist
Verification of documents
Online Application
Responding to queries
You get your 80G registration
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.
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.
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.
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.
Application for registration under section 8OG can be applied to the Commissioner of Income tax (Exemption) having jurisdiction over the institution.
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.
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.
If application for registration under section 80G(5) will be applied through NGO Factory, it should take 3 to 4 months.
Once registered, the validity period for 80G(5) registration would be 1 to 3 years.
For new application and renewal of registration under section 80G(5) of the Income Tax Act Form 10G would be used.
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.
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.
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.
Are you running a non-profit organization involved in charitable activities? Get your organization registered under ’80G registration’ to allow your donors to benefit from tax deductions on their taxable income. Register your trust or organization under ’80G registration’ with Ebizfiling.com at justINR 3,999/- only.
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