80G Registration

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, LegallensIndia is here to help. Our experts guide you through the entire registration process, ensuring a smooth and efficient experience from application to certificate issuance.

What is Section 80G?

Section 80G of the Income Tax Act, 1961 allows individuals and organisations to claim tax deductions on donations made to eligible charitable organisations.

When an organisation obtains an 80G Certificate, it is recognised by the Income Tax Department as eligible to receive tax-deductible donations. Donors contributing to such organisations can claim deductions on their taxable income up to the prescribed limits, encouraging charitable giving while reducing their tax liability.

What is 80G Registration?

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

The registration provides tax benefits to both the donor and the recipient organisation. Charitable institutions registered under Section 80G are authorised to receive tax-deductible donations, while donors can claim deductions while filing their Income Tax Returns.

The Finance Act, 2020 introduced significant amendments requiring organisations registered under Section 80G to file annual returns, undergo verification by the Income Tax Department, and comply with renewal requirements. Registrations may also be reassessed or revoked for non-compliance.

Importance of 80G Registration

Section 80G Registration allows donors, including individuals, companies, associations, and organisations, to claim deductions on donations made to eligible NGOs under the Income Tax Act.

The deduction is available provided the donated amount does not exceed 10% of the donor's gross total income.

Donations must be made in monetary form, as only financial contributions qualify for deduction under Section 80G.

While issuing donation receipts, NGOs must mention the 80G Registration Number, Certificate Date, and the Validity Period of the certificate to enable donors to claim tax benefits.

Eligibility Criteria for 80G Registration

Before applying for an 80G Certificate, the charitable organisation must satisfy the following eligibility conditions.

• Legal Structure: The organisation must be registered as a Trust, Society, or Section 8 Company under the applicable laws in India.
• Non-Profit Objective: The primary objective of the organisation should be charitable activities and not profit generation.
• Proper Documentation: Accurate books of accounts must be maintained, and annual audits should be conducted wherever applicable.
• Compliance with Income Tax Act: The organisation must comply with the provisions of Sections 11 and 12 of the Income Tax Act.
• Business Income: Any business income should be separately accounted for, and donations must be utilized only for charitable purposes.
• Non-Exclusive Benefit: The organisation should not exist solely for the benefit of any particular religious community or caste.
• Darpan Registration: Registration on the NITI Aayog Darpan Portal is mandatory for organisations receiving or intending to receive grants from Central or State Governments.
• Audit Reports: Where income exceeds the prescribed threshold, accounts must be audited by a Chartered Accountant.
• Utilisation of Funds: At least 85% of the organisation's income should be utilised within India for its charitable objectives.

Benefits of 80G Registration

Obtaining Section 80G Registration offers several benefits to both the charitable organisation and its donors.

• Tax Benefits for Donors: Donors can claim tax deductions of 50% or 100% of the donated amount, depending on the eligible category of the organisation.
• Enhanced Credibility: Organisations registered under Section 80G are viewed as more reliable and trustworthy by donors.
• Higher Donations: Tax benefits encourage individuals and businesses to contribute more generously.
• Wider Donor Base: Registration helps organisations attract a larger number of potential donors.
• Compliance & Transparency: Section 80G Registration demonstrates legal compliance and promotes transparent financial management.

Documents Required for 80G Registration

The following documents are mandatory for obtaining an 80G Registration Certificate. These documents should be submitted along with Form 10A or Form 10G, as applicable.

• Trust Deed, Society Registration Certificate, or Section 8 Company Incorporation Certificate.
• Memorandum of Association (MOA) and Articles of Association (AOA) (applicable only for Section 8 Companies).
• PAN Card of the organisation.
• Bank Account Statement of the organisation.
• Audited Financial Statements for the last three years.
• List of Trustees, Members, or Directors.
• Details of charitable activities carried out by the organisation.

Keeping these documents ready before initiating the registration process helps ensure faster verification and approval.

80G Registration Validity and Renewal

The initial provisional registration under Section 80G is valid for three years. After the provisional period expires, organisations must apply for renewal.

Upon successful renewal, the registration remains valid for five years. Thereafter, organisations are required to renew their registration every five years to continue enjoying the benefits available under Section 80G.

Important Note

For Section 8 Companies, the validity of the existing 80G Registration is up to March 2025. It must be renewed for the Assessment Year (AY) 2025–2026 in March 2025 to continue availing tax benefits under Section 80G.

80G Registration Process

The procedure for obtaining 80G Registration depends on whether the organisation is applying for provisional registration or seeking regular registration after the provisional period. Both processes are governed by the Income Tax Department and require submission of prescribed forms and supporting documents.

Process for Provisional 80G Registration

New charitable organisations seeking an 80G Registration Certificate must first obtain provisional registration. The following steps explain the process.

Step 1: Submit the Application

File an application in Form No. 10A before the jurisdictional Commissioner of the Income Tax Department along with the prescribed documents.

Step 2: Verification of Documents

The Income Tax Department carefully examines the application and all supporting documents submitted by the organisation.

Step 3: Furnish Additional Information (If Required)

If the authorities require any clarification or additional documents during verification, the organisation must furnish the requested information within the prescribed time.

Step 4: Issue of 80G Certificate

Once the Commissioner is satisfied with the application and supporting documents, the 80G Registration Certificate is issued to the organisation.

Important Note on Provisional Registration

The validity of provisional 80G Registration begins from the Assessment Year for which registration has been granted.

The application for renewal should be submitted:

• At least six months before the expiry of the current registration period, or
• Within six months from the commencement of the organisation's charitable activities, whichever is earlier.

Before the provisional registration expires, NGOs must apply for regular registration. Upon successful verification of the organisation's charitable activities and financial records, regular registration is granted for a period of five years.

Process for Regular 80G Registration

After obtaining provisional registration and commencing charitable activities, organisations are required to apply for regular 80G Registration. The following steps explain the procedure.

Step 1: Submit Form 10G

The organisation must complete and submit Form 10G along with all the prescribed supporting documents to the Income Tax Department.

Step 2: Inspection by Income Tax Department

The Income Tax Officer (ITO) may conduct an on-site inspection or verification to validate the information furnished by the organisation and ensure compliance with the provisions of the Income Tax Act.

Step 3: Approval of Regular Registration

After successful verification and satisfaction of all statutory requirements, the Income Tax Department grants Regular 80G Registration, which remains valid for a period of five years.

Streamline 80G Registration with LegallensIndia!

LegallensIndia simplifies the complete 80G Registration process by providing professional assistance from application preparation to successful certificate issuance.

Our experts help you prepare the required documentation, file Form 10A or Form 10G accurately, respond to departmental queries, and ensure compliance with all statutory requirements under the Income Tax Act.

Whether you are applying for provisional registration, renewal, or regular 80G Registration, LegallensIndia provides end-to-end support, allowing you to focus on your charitable objectives while we take care of the registration process..