An NGO itself is registered under section 80G. If a Donor is making the donation to the NGO, Donor will get exemption of 50% of donation amount from taxable income. An NGO has to obtain approval from income tax department under section 12A, which has a lifetime validity and then 80G registration shall be granted by the Income Tax department with validity for 2-3 years.
When an NGO eligible to apply for 80G Certificate
An NGO can apply for 12A certification and 80G certifications just after the registration of an NGO.
Requirements for the eligibility of 80G certificate
NGO should have principal objective for charitable purposes and entire, incomes should be from donations. If in case, NGO has a business income then the trustee of an NGO should separate books of accounts to ensure that NGO should not divert donations received for the purpose of such business.
Bylaws of the NGO must contain that spending the income or assets should be exclusively for the purpose of charity.
NGO should not be formed with the benefit of a particular religious community or caste.
Proper books of accounts of the NGO should be maintained, including its receipts and expenditures.
Mandatory registration of NGO’s bye laws
Documents required for 80G Certificate & 12A License
Following Registration Documents are required:
- Duly filled in Form – 10G.
- Trust Deed / MOU of Section 8 company.
- NOC from the landlord if registered office is on rent.
- A copy of PAN Card (NGO).
- Any Valid utility bills.
- Summary of welfare activities carried in the preceding 3 years.
- Balance sheet and books of accounts for the preceding 3 years.
- List of donors along with their address and PAN.
- List of governing board of trustees members with their contact details.
- Original Registration Certificate.