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80g registration for getting tax benefits

Section 80g is of a great benefit to the corporates and multi national companies where annual turnover are in crores. If they donate to NGOs having 80g registration, they will get fifty percent tax rebate of the donated amount. 

New Registrations

A request for a new registration under section 80g must be made to the Principal Commissioner or Commissioner. A provisional registration of three years will be given to organisations. Once approved, the registration is good for three years starting with the Assessment Year from which it was requested. It is necessary to file an application for the renewal of such a new registration:-

(a) at least six months before the validity term expires, or

(b) within six months after the start of the activities, whichever comes first.

80g

Get 80g deduction.

The temporary registration thusly obtained is valid for three years and must be renewed at the conclusion of the aforementioned time frames. The registration is only valid for 5 years after being renewed in this manner and it must be renewed after every 5 years.

Existing Registration- Validation and Re approvals

Previously, the permission under Section 80G was good forever. According to the Finance Act 2020, all current 80G approvals must be revalidated, and applications must be filed within three months of the first of April 2021, or on or before the 30th of June 2021. The revalidation of registrations will be permitted under the updated regulations for a period of five years, after which time a new application for 80G approval must be made at least six months before the registration expires.

Conditions that must be met to comply with section 80g

The following requirements must be met in order for section 80g to be approved:-

(a) The NGO shouldn't have any taxable revenue, such as that from a company. If an NGO earns money through a company, it must have separate books of accounts and must not use donations received for that reason.

(b) No provision for using an NGO's assets or revenue for anything other than charitable ones should be included in its bylaws or aims.

(c) The NGO is not acting in favor of a specific religious group or caste.

(b) The NGO keeps regular records of its income and outgoing costs.

(e) The non-profit organisation is duly registered in accordance with the Societies Registration Act of 1860, and other laws that are similar to that act or are registered in accordance with Section 8 of the Companies Act of 2013.

Know more about section 80g of income tax act.

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