2. What is 80g?
Section 80g offers a tax
deduction for donations to
certain prescribed funds
and charitable institutions.
3. Benefits of 80g
Those organizations who
donate to NGO under
section 80g, they get
deduction of 50% in their
tax.
4. Eligible Assesses for 80g
This section is applicable
to all Ngo, who make an
eligible donation, whether
an individual, HUF, NRI or
a company.
5. Applying for 12a Certification
shall ensure the acceptance of
the organization by Income Tax
department. After getting the 12a
certification the Ngo
organization gets the perfect
legal entity. The entire tax of ngo
is exempted.
6. Apply for 80g certification
By showing their record of
achievements in social
welfare activities and by
proving their service to the
public. By getting this 80g
certification, organization
are privileged to provide tax
exemption to the donors who
donates their organization.
7. That is when an organization receives
donation from public, individual or
from a group it shall issue 80g tax
exemption to the donor, where
donors are entitled to donate from
their 10% of gross total annual
income. In that 10% of their donation,
donors shall receive 10% tax
exemption for their donation. So this
type of certification, gives the power
to the organization to encourage
their donation to donate more .
8. What is the validity
period of the registration
under section 12A and
80G of Income Tax Act?
12A registration : Lifetime validity
80G registration : 1 to 3 years
validity
9. 1. If nonprofit Ngo organization is under going
with any business, then they have to maintain
a separate account and should not mix the
donations they receive for social cause.
2. Other than charitable cause the organization
or its byelaw should not represent any other
causes towards spending of such donation
amounts or the assets and incomes of the
nonprofit Ngo organization.
When you apply for 80g you shall
check yourself for the fitness of 80g
approval under the following factors.
10. 3. The nonprofit Ngo organization shall not be
able to apply for 80 g if it support religion
based, caste and creeds based activity.
4. The nonprofit Ngo organization should have
the qualification of registration which might
have been registered under Societies
registration act 1860 or registered under
section 25 of Companies act 1956.
11. 5. Proper annual returns, accounting, book
keeping should be in manner before applying
for 80 g.
6. If you have already received the 80 g
certificate, then proper renewal is must to
hold such tax benefits.
Income tax department has the power to
approve or reject such approval upon
disqualification of the nonprofit organization
or dissatisfaction found by the department
towards the nonprofit Ngo organization
activities.
12. Donations with 100% deduction without
any qualifying limit .
1. Prime Minister’s National Relief Fund
2. National Defense Fund
3. Prime Minister’s Armenia Earthquake
Relief Fund
4. The Africa (Public Contribution - India)
Fund
13. 5. The National Foundation for Communal
Harmony
6. Approved university or educational institution
of national eminence
7. The Maharashtra Chief Minister’s Earthquake
Relief Fund
8. Donations made to Zila Saksharta Samitis.
9. The National Blood Transfusion Council or a
State Blood Transfusion Council.
10. The Army Central Welfare Fund or the Indian
Naval Benevolent Fund or The Air Force Central
Welfare Fund.
14. Donations with 50% deduction
without any qualifying limit
1. Jawaharlal Nehru Memorial Fund
2. Prime Minister’s Drought Relief Fund
3. National Children’s Fund
4. India Gandhi Memorial Trust
5. The Rajiv Gandhi Foundation
15. Deduction amount u/s. 80g.
Donations paid to specified institutions
qualify for tax deduction under 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:
a) 100% deduction without any qualifying
limit (e.g., Prime Minister’s National
Relief Fund).
16. b) 50% deduction without any
qualifying limit (e.g., India Gandhi
Memorial Trust).
c) 100% deduction subject to
qualifying limit (e.g., an approved
institution for promoting family
planning).
d) 50% deduction subject to qualifying
limit (e.g., an approved institution
for charitable purpose other than
promoting family planning).
