80G Registration

80G registration in Jharkhand– 80G Certificate is given to a non-benefit association or non-legislative associations (NGO), a magnanimous trust or a Section 8 Company by the Income Tax Department. The goal behind the 80G testament is to energize an ever increasing number of contributors to give assets to such associations.

NGOs primarily rely on donations to support their functioning. To claim those tax exemptions (available to both donors and recipients), NGOs are to register under Section 80G and Section 12A of the Income Tax Act. The process is complicated and time-consuming, and it can be difficult for non-professionals to do it.

Some donations meet all requirements for either half or 100% assessment conclusion though some others fit the bill for a similar finding yet up to a most extreme restriction of 10% of Adjusted Gross Total Income of the citizen.

80G registration in Jharkhand80G registration in Jharkhand is an efficient way to attract an abundance of donations in the NGO/charitable trust. It also elevates the public image of an NGO, since the donors usually prefer a registered trust. Also, with the certificate of 80G, the donors get numerous tax exemption and deductions as per their eligibility. If you also want to register your NGO under Section 80G, look no further than Jharkhand Consultant. We hold legal expertise and help you in drafting the application of 80G exemption certificate.

An 80G Certificate in India is a legal document granted by the Income Tax Department to an NGO or non-governmental organization such as a Section 8 Company or a charitable trust. The 80G Certificate is issued to encourage and promote the donors to contribute funds into such NGOs or non- profit organizations. Moreover, when the donor makes donations to such an organization, they will get a tax exemption of 50%  and also they become qualified to deduct such sum from their Gross Total Income. Furthermore, in order to obtain the tax exemption, the donor has to file the stamped receipt or document as evidence of the donation made. Such a receipt or document should have the name of the donor, date of contribution or donation made, and PAN number of the organization.

Who can avail tax savings under 80G?
  • A person who makes an eligible donation is entitled to avail tax exemption under 80 G.
  • Donations made to listed trust and organizations only qualify for deduction u/s 80G
Who cannot avail tax savings under section 80G?
  • If a donation is made to a foreign trust you cannot qualify for tax savings under section 80G.
  • If donations have been made too one or more political parties you cannot avail or claim deduction for such donations. Deductions cannot be claimed even for printing or publishing of brochures, flyers and pamphlets
  • Donations by NRI if made to eligible institutions and trusts also qualify for tax exemption under section 80G.
  • If donation is made from salary and if the donation receipt carries the name of the employer then employees can claim deduction under section 80G

Percentage of Deduction under Section 80G:
  • Payments made to Prime minister relief fund is eligible for 100% deduction u/s 80G without any limit
  • Deductions made to trusts like “Indira Gandhi memorial trust” is eligible for 50% deduction without any limit.
  • An approved institution i.e. institutions promoting and encouraging family planning is eligible for 100% exemption u/s 80G
  • Any charitable trust that falls under the list is eligible for 50% deduction u/s 80G.

Claim Deductions under 80G – Documents Required:

  • Stamped receipt is required for claiming deduction under section 80G. The receipt has to be mandatorily be issued by the recipient trust. The receipt should comprise of
    • Name, address & PAN number for the trust the donation was made to.
    • The name of the do not should be mentioned
    • The amount donated should be mentioned in numeric as well as words.
    • Donations that can attract 100% deduction – in such case form 58 from the trust should also be asked for
      • Form 58 comprises of the details of the amount that was authorized as well as the amount that was collected.
      • Without presenting form 58, the deductions made for 100% claims will be rejected.
  • Registration number of the trust under 80G:
    • It is extremely important to mention the registration number issued by the income tax department under section 80G. The registration number should be printed on the receipt. The registration is issued by the income tax department for a period of two years only therefore the registration number as well as the validity of the registration should also be mentioned on the receipt.
      • The validity of the registration should be valid as of the date the receipt is issued.
    • Photocopy of the 80G certificate is required too in addition to the receipt.
Benefits of 80G Registration in Jharkhand:

After an NGO or society is registered as per the requirements under 12A they would also claim the benefits under section 80G of the Income Tax Act, 1961. The following benefits are available to an entity that is claiming this form of exemption:

Increase in Reputation-

Having 80G registration certificate would make the entity more reputed in the eyes of the public. This certificate enables the donors to secure some form of exemption and paying less tax when it comes to donating to the particular NGO. Hence this certificate is useful for the donor.

More Donors-

Having this certificate not only increases the reputation of the NGO or society but also increases the amount of donors. More donors would be able to claim tax exemptions under this system.

Donors can save tax-

Donors can utilise this certificate of the NGO to save tax while paying certain amount of tax to the respective government authorities.

Government Funding-

Government are more likely to provide different forms of grants and related funding to NGO and societies having these certificates.

As per Section 80G of the Income Tax Act, if an NGO gets an 80G certification then it’s donors will be allowed to reduce the amount of donation made from its total Income (proportion of deduction allowed depends on the type of organisation), thus being incentivised to contribute some part of their disposable income towards good causes.

How to Register Under Section 80G:

Any NGO that wants to register under Section 80G has to be duly registered and should be working specifically towards charitable objectives.

Step 1: An application has to be filed in Form 10A with the Commissioner of Income Tax – Exemption.

Step 2: Important documents are to be submitted

Step 3: Upon submission, the documents would be reviewed by the Commissioner. If required, he may ask for additional documents or information and the same have to be provided within the timeframe to avoid rejection

Benefits:

  • 80G certification enhances the prospects and credibility of any organisation
  • Donors reap the benefits of less taxable incomes
  • Possibility of attracting more donors
  • Eligibility to get government funds
  • NGO owners can seek foreign contributions without many hassles

New terms of Registration and Re-registration under Section 80G and 12A:

  • Newly established trusts applying for income tax registration will be given provisional registration for three years. It becomes due for renewal either upon commencement of activities or upon completion of 3 years.
  • For Re-Registration, the tenure will be revalidated by income tax authorities for a period of 5 years and renewal will fall due upon completion of 5 years.

Fundamental Requirements for 80G Registration in Jharkhand:

Here is the list of requirements that every NGO needs to meet to acquire an 80G certificate:

  • The foremost requirement for 80G registration is to get registered under the Section 8 and Societies Registration Act, 1860.
  • One has to keep a record of all the transactions like receipt and expenditures of NGO in the book of accounts.
  • The primary objective of the NGO must be to promote charitable purposes rather than to generate profits or any other personal goal.
  • Also, the applicant NGO must utilize its assets and income exclusively for charitable purposes.
  • The charitable institution should only be established in India.
  • Lastly, the central income source of the NGOs should only be donations.

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