{"id":1214,"date":"2019-11-18T13:11:09","date_gmt":"2019-11-18T13:11:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1214"},"modified":"2021-03-25T14:59:11","modified_gmt":"2021-03-25T09:29:11","slug":"procedure-of-80g-registration-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/","title":{"rendered":"What is the Procedure of 80g Registration in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Making\ndonations is a noble task; it is not only recognized by god, but also by the\ntaxation departments. Obtaining 80G Registration for your non-profit\norganization can grant the donors a chance to avail tax deductions on\ndonations. Additionally, obtaining 80G Certificate can also help increase the\ntotal count of donations your non- profit organization collect. This article\nall about 80G Registration and the advantages of holding an 80G Certificate.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#What_is_80G_Registration\" >What is 80G Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#Benefits_of_80G_Registration\" >Benefits of 80G Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#Who_can_avail_tax_savings_under_Section_80G\" >Who can avail tax savings under Section 80G?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#Who_can_not_avail_tax_savings_under_Section_80G\" >Who can not avail tax savings under Section 80G?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#Deduction_percentage_under_Section_80G\" >Deduction percentage under Section 80G<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#Mode_of_payment_that_is_eligible_for_a_tax_deduction\" >Mode of payment that is eligible for a tax deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#Step_by_step_Procedure_for_80G_Registration\" >Step by step Procedure for 80G Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#80G_Certificate_issuance\" >80G Certificate issuance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_80G_Registration\"><\/span>What is 80G Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/80g-and-12a-registration\"><strong>80G Registration<\/strong><\/a>\u00a0or 80G Certificate is a certificate that allows the people making donations in your organization to avail tax deductions under Section 80G of Income Tax Act, 1961. Furthermore, religious charities or angel businesses are not generally issued an 80G Certificate. Moreover, gifts made to or trusts that are operating outside India or foreign trusts are not eligible for tax deductions.\u00a0 \u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_80G_Registration\"><\/span>Benefits of 80G Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Obtaining 80G\nRegistration has many advantages which are discussed below in detail;<\/p>\n\n\n\n<ul><li><strong>Tax benefits<\/strong>: You are provided with various tax benefits when your institution is registered under Section 80G<\/li><li><strong>Attract more donors<\/strong>: Also, obtaining 80G Registration attract more donors as they get tax deductions under Section 80G of the Income Tax Act<\/li><li><strong>Better access to funding<\/strong>: Furthermore, the chances for your trust to raise funds increases when you hold 80G Registration<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_avail_tax_savings_under_Section_80G\"><\/span>Who can avail tax savings under Section 80G?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following\ncategory of people can claim deductions under Section 80G of the&nbsp;<strong>Income\nTax Act<\/strong><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/acts\/income-tax-act.aspx\">[1]<\/a><\/sup>;<\/p>\n\n\n\n<ul><li>A person who makes a donation in the prescribed mode of payment can avail tax exemption under 80 G<\/li><li>Furthermore, donations made to listed\u00a0<a href=\"https:\/\/corpbiz.io\/trust-registration\"><strong>trust\u00a0<\/strong><\/a>and organizations only qualify for deduction under Section 80G<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_not_avail_tax_savings_under_Section_80G\"><\/span>Who can not avail tax savings under Section 80G?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Also, a\nspecific group of people are not entitled to take advantage of these deductions\nunder specified circumstances. The conditions under which tax deductions are\nnot available are as follows;<\/p>\n\n\n\n<ul><li>You are not qualified for tax savings under section 80G if a donation is made to a foreign trust<\/li><li>If you make donations in one or more political parties, you cannot claim a deduction for such contributions.<\/li><li>Also, you cannot avail deductions for printing or publishing of brochures, pamphlets and flyers<\/li><li>Donations by a Non-Resident Indian made to eligible institutions and trusts also qualify for tax exemption under section 80G<\/li><li>If a donation is made from salary and if the receipt carries the name of the employer then the employee can claim deduction under section 80G <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deduction_percentage_under_Section_80G\"><\/span>Deduction percentage under Section 80G<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Deductions\nare provided to the taxpayers in some percentage as prescribed by relevant\nlaw.&nbsp;<\/p>\n\n\n\n<ul><li>Donations made to Prime minister relief fund is eligible for 100% deduction under section 80G without any upper limit<\/li><li>Payments made to trusts like \u201cIndira Gandhi memorial trust\u201d is suitable for 50% deduction without any specified limit<\/li><li>An approved institution, i.e. institutions encouraging and promoting family planning is eligible for 100% exemption under section 80G<\/li><li>Any\u00a0<a href=\"https:\/\/corpbiz.io\/learning\/forfeiture-of-exemption-to-charitable-trust-ngo\/\"><strong>charitable trust\u00a0<\/strong><\/a>that is included in the list is suitable for 50% deduction under section 80G<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"582\" height=\"506\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/image-22.png\" alt=\"deduction under section 80G\" class=\"wp-image-28164\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/image-22.png 582w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/image-22-300x261.png 300w\" sizes=\"(max-width: 582px) 100vw, 582px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Documents required to claim deductions under Section 80G<\/h3>\n\n\n\n<p>The documents\nrequired to register under Section 80G of the Income Tax Act are as follows;<\/p>\n\n\n\n<ul><li>A copy of PAN Card (NGO)<\/li><li>Duly filled Form 10G<\/li><li>Trust Deed \/ MOU<\/li><li>Summary of welfare activities carried in the preceding three years<\/li><li>Balance sheet and books of accounts of the previous three years<\/li><li>List of donors along with their address and PAN<\/li><li>List of the governing board of trustee\u2019s members with their contact details<\/li><li>Original Registration Certificate<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">For Proposed Registered office (Residential or commercial)<\/h3>\n\n\n\n<ul><li>Any Utility bills<\/li><li>Scan copy of Rent agreement with NOC from owner<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mode_of_payment_that_is_eligible_for_a_tax_deduction\"><\/span>Mode of payment that is eligible for a tax deduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Not all form\nof payment is qualified for claiming tax deductions under Section 80G.\nFurthermore, only a specified method of payment is allowed for the deductions\nwhich are as follows;<\/p>\n\n\n\n<ul><li>Donations made in the form of gifts do not qualify for tax benefits<\/li><li>Also, the donations made in kind will not help you with tax benefits during a disaster such as floods, earthquake<\/li><li>Contributions deducted from salary can be claimed by providing the receipt received at\u00a0 the time of payment<\/li><li>Only cash or cheque donations qualify for a tax deduction<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Compliance requirements for 80G Registration<\/h3>\n\n\n\n<p>The applicant\nof the 80G Registration must comply with the following conditions;<\/p>\n\n\n\n<ul><li>An application can only be made by registered societies, public charitable trusts, recognized educational institution or any institution funded by the Government<\/li><li>The institution or trust applying for the Certificate must be duly registered under the\u00a0<a href=\"https:\/\/corpbiz.io\/society-registration\"><strong>Society Registration<\/strong><\/a>\u00a0Act, 1860, Section 25 of the Companies Act or under any other relevant laws.<\/li><li>Applicants of the Certificate must not correspond to any religion-based or caste and creeds based activity.<\/li><li>The donated funds received by these trust\/ institution should only be used for charitable purposes<\/li><li>The registered trust should not hold any income which is not exempted<\/li><li>Institutions pursuing any other businesses side- by- side are required to maintain a separate book of accounts so that the received donations are not confused with savings of any other kind<\/li><li>The applicant should manage an appropriate record of\u00a0<a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/\"><strong>filing annual returns<\/strong><\/a>, accounting and bookkeeping before applying for the Certificate.<\/li><li>Lastly, the recipient of the Certificate must ensure timely renewal of licenses which will help the donors to receive associated tax benefits<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Time Limit of\nPassing Order<\/strong><\/h3>\n\n\n\n<p>Under section 80G (5) the order that grants approval or rejects the application shall be passed within the six months time period from the month\u2019s end in which the application was received.<\/p>\n\n\n\n<p>In calculating the period of six months, the time taken\nby the applicant in not abiding with the Commissioner\u2019s directions shall be\nexcluded.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_by_step_Procedure_for_80G_Registration\"><\/span>Step by step Procedure for 80G Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Given below\nare the steps that you need to follow to obtain the 80G Certificate for your\ninstitute;<\/p>\n\n\n\n<ul><li>Submit the application for 80G Certificate to the Commissioner of Income Tax along with relevant documents<\/li><li>After successful submission of application and documents, the Income Tax Department will conduct an On-premise inspection<\/li><li>The department officials may ask for additional documents or evidence if they feel the need for the same<\/li><li>After satisfactory verification of the premise and the documents, the 80G Certificate is issued to the institution<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"80G_Certificate_issuance\"><\/span>80G Certificate issuance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Upon the\nreceipt of the application, the Commissioner will pass a written order upon\nsuccessful verification of the application which would effectively register the\ntrust\/ institution under Section 80G of the Income-tax Act.<\/p>\n\n\n\n<p>Also, the\nCommissioner may demand further documents from the applicant if the need for\nthe same is felt, or reject the application in the worst case. The Registration\naccorded to the trust is valid for a period of one-three years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Obtaining 80G registrations is helpful to you in many ways; it helps attract more donors, builds trust and helps raise fund from the Government. Also, it helps the people who make donations to your trust can avail some or all part of the donation made. Basically, it is a win-win situation. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/registration-of-ngo-in-india-under-12a-and-80g\/\">Tax Exemption for NGOs: Section 12A &#038; 80G\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Making donations is a noble task; it is not only recognized by god, but also by the taxation departments. Obtaining 80G Registration for your non-profit organization can grant the donors a chance to avail tax deductions on donations. Additionally, obtaining 80G Certificate can also help increase the total count of donations your non- profit organization [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":1216,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[192],"tags":[194],"acf":{"service_id":"12"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":78009,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1214"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1214"}],"version-history":[{"count":22,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1214\/revisions"}],"predecessor-version":[{"id":28184,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1214\/revisions\/28184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1216"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}