{"id":19111,"date":"2020-11-07T16:27:37","date_gmt":"2020-11-07T10:57:37","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19111"},"modified":"2024-09-27T12:08:06","modified_gmt":"2024-09-27T06:38:06","slug":"jurisprudential-views-of-teaching-under-ngo-by-budget-2020-21","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/jurisprudential-views-of-teaching-under-ngo-by-budget-2020-21\/","title":{"rendered":"An Overview on Jurisprudential Views of Teaching under NGO by Budget 2020-21"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Budget 2020 has\namended specific provisions of the Income Tax Act, 1961 that has a great impact\non the performance of the registered Charitable Trusts and NGOs. The charitable\ntrusts and NGOs are loaded with the setting an expiry date for registration, renewal\nof existing registration, filing of statement for donation receipts and other\nformalities in the performance of Charitable institutions &amp; NGOs.<\/p>\n\n\n\n<p>Still, relaxations\nare being provided in new registration of trusts or societies formed for social\nwell-being like educational, religious or any other activities done in the\npublic interest. In this Article, we are going to discuss about the Jurisprudential\nViews of teaching under NGO by budget 2020.<\/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\/jurisprudential-views-of-teaching-under-ngo-by-budget-2020-21\/#Impact_of_Budget_in_Teaching_under_NGO\" >Impact of Budget in Teaching\nunder NGO<\/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\/jurisprudential-views-of-teaching-under-ngo-by-budget-2020-21\/#Things_to_keep_in_mind_while_forming_Educational_Institutions_under_NGO\" >Things to keep in mind while forming\nEducational Institutions under NGO<\/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\/jurisprudential-views-of-teaching-under-ngo-by-budget-2020-21\/#Documents_Required_Registering_Educational_institutional_for_Teaching_under_NGO\" >Documents Required Registering\nEducational institutional for Teaching under NGO<\/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\/jurisprudential-views-of-teaching-under-ngo-by-budget-2020-21\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_Budget_in_Teaching_under_NGO\"><\/span>Impact of Budget in Teaching\nunder NGO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Budget 2020 proposed various changes related to societies and educational institutions. The budget has laid down few provisions that affects teaching under NGO. All such proposed changes are explained below-<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"602\" height=\"270\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-28.png\" alt=\"Impact of Budget in Teaching under NGO\" class=\"wp-image-19163\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-28.png 602w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-28-300x135.png 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Changes in Section 10(23C) of\nIncome Tax Act, 1961<\/h3>\n\n\n\n<p>Every permitted\ntrust institution, university or educational institution &amp; hospital or medical\ninstitution specified as per Section 10(23C) has to make a fresh application\nfor grant of approval by 31<sup>st<\/sup> August 2020. These fresh approvals are\nvalid for five years only.<\/p>\n\n\n\n<p>Income Tax\nDepartment should pass an order for approval of such grant within three months from\nfiling of the application. All assessee are required to make a fresh\napplication for grant of approval after completion of five years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Changes in Section 11, 12AA and\n12AB of Income Tax Act, 1961<\/h3>\n\n\n\n<p>Every <a href=\"https:\/\/corpbiz.io\/ngo-registration\"><strong>NGO registration<\/strong><\/a> as well as educational institutions has to make a fresh application for grant of approval by 31<sup>st<\/sup> August 2020. Validity of fresh approval is for five years only.<\/p>\n\n\n\n<p>Income Tax\nDepartment has to pass an order for approval of grant within 3 months of the\nfiling of the application. Moreover, an NGO having approval under Section\n10(23C) as well as Section 12AA can apply for registration.<\/p>\n\n\n\n<p>Every NGO as well\nas educational institutions having registration under Section 12AB will be\ngranted a provisional registration for 3 years. Provisional registration holder\nare required to make a fresh application for registration at least 6 months earlier\nto the termination of the provisional registration or within six months of beginning\nof its activities.<\/p>\n\n\n\n<p>Section 12AA will\ncease to exist effective from 1<sup>st<\/sup> June 2020 and Section 12AB is\neffective from 1<sup>st<\/sup> June, 2020. Section 12AB administers the registration\nprocess, effective from the above mentioned date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Changes in Section 80G of Income\nTax Act, 1961<\/h3>\n\n\n\n<p><em><strong>Every NGO as well as educational institutions will make a fresh application for grant of approval by 31st&nbsp;August 2020.<\/strong><\/em><\/p>\n\n\n\n<p>Every NGO as well as educational institutions has to file for an application for <strong><a href=\"https:\/\/corpbiz.io\/80g-and-12a-registration\" title=\"12a and 80g registration online\">registration under section 80G<\/a><\/strong>. The institutions shall be granted a provisional registration for 3 years. Provisional registration holder are required to make a fresh application for registration at least 6 months earlier to the termination of the provisional registration or within six months of beginning of its activities.<\/p>\n\n\n\n<p>Every NGO as well\nas educational institutions will prepare and provide a statement as may be\nprescribed that consists of the details of donors along with donation received\nby the trust or any institutions. After providing such statements, NGO will\nissue a certificate to Donor specifying the donation details.<\/p>\n\n\n\n<p>Explanation 2A has been inserted under section 80G(5D) by the Budget 2020 that mandates providing details of donors&nbsp; by the NGO to claim deduction under Section 80G by the donor while <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>ITR filing<\/strong><\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Changes in Section 80GGA of\nIncome Tax Act, 1961<\/h3>\n\n\n\n<p><em><strong>The changes in Section 80GGA of Income Tax Act are as follows-<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>Limit for donation in cash has been reduced from INR 10,000 to INR 2,000;<\/li>\n\n\n\n<li>Deduction under section 80GGA to the donor shall be allowed on the basis of statement furnished by the payee to income tax department from time to time.<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/shedding-light-on-subjects-and-benefits-of-educational-ngo\/\">Shedding Light on Subjects and Benefits of Educational NGO<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Things_to_keep_in_mind_while_forming_Educational_Institutions_under_NGO\"><\/span>Things to keep in mind while forming\nEducational Institutions under NGO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The points to keep in mind while forming Educational Institutions for Teaching under NGO are-<\/strong><\/em><\/p>\n\n\n\n<ol>\n<li>As per The&nbsp;Emblems Act, 1950 use of any name, emblems, official seal, etc. without prior&nbsp;permission of the competent authority is prohibited. Additionally, the act also forbids the use of the name of any \u2018national heroes\u2019&nbsp;and other names mentioned in the act.<\/li>\n\n\n\n<li>If the suggested&nbsp;name is used&nbsp;by any other <a href=\"https:\/\/corpbiz.io\/society-registration\"><strong>registered society<\/strong><\/a> should be&nbsp;avoided.&nbsp; &nbsp;<\/li>\n\n\n\n<li>You should be careful about the&nbsp;Memorandum of Association (MoA)&nbsp;that should contain the following-<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Name&nbsp;of Educational Society;<\/li>\n\n\n\n<li>Objects&nbsp;of Educational Society;&nbsp;<\/li>\n\n\n\n<li>Details&nbsp;such as the name, address and professions of the governors, council, directors, committee or other governing body;<\/li>\n\n\n\n<li>Certified copy of the&nbsp;rules and regulations&nbsp;of the Institution by no less than 3 of the members of the governing body.&nbsp;&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_Registering_Educational_institutional_for_Teaching_under_NGO\"><\/span>Documents Required Registering\nEducational institutional for Teaching under NGO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The documents required for registration of educational institutions for teaching under NGO are as follows-<\/strong><\/em><\/p>\n\n\n\n<ol>\n<li>An affidavit has to be provided regarding the&nbsp;ownership and No Objection Certificate&nbsp;for the registered office of the proposed educational institution;<\/li>\n\n\n\n<li>An affidavit has to be provided related to the persons&nbsp;not related to each&nbsp;other stating the name of the institution;<\/li>\n\n\n\n<li>ID Proofs&nbsp;have to be submitted of all the members of the proposed Educational Institution;<\/li>\n\n\n\n<li>All the members of the proposed Educational Institution has to provide &nbsp;their&nbsp;Address proof;<\/li>\n\n\n\n<li>Cover Letter stating the objective or the purpose of the Educational Institution signed by all the founding members;<\/li>\n\n\n\n<li>Property papers&nbsp;copies related to the proposed Educational Institution;<\/li>\n\n\n\n<li>Provide the&nbsp;Minutes of the previous&nbsp;meeting of the proposed educational institution;<\/li>\n\n\n\n<li>Provide the Bank Statements&nbsp;of the proposed Educational institution;<\/li>\n\n\n\n<li>Declaration&nbsp;has to be provided by the chairman of the proposed institution stating that he is willing as well as competent to hold the position of the chairman;<\/li>\n\n\n\n<li>Memorandum of Association&nbsp;(MoA) has to be prepared and it should consist of the following clauses and facts-<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>The work and the&nbsp;objectives&nbsp;of the proposed educational institution;<\/li>\n\n\n\n<li>The details of the&nbsp;members&nbsp;forming the proposed educational institution;<\/li>\n\n\n\n<li>It will include the&nbsp;address&nbsp;of the registered office of the proposed educational institution.<\/li>\n<\/ul>\n\n\n\n<p>11. Articles of Association&nbsp;(AoA) have to be prepared and it should contain the following facts:-<\/p>\n\n\n\n<ul>\n<li>The&nbsp;Rules and regulations&nbsp;related to the operation of the educational institution;<\/li>\n\n\n\n<li>It has to include the rules for taking the&nbsp;membership&nbsp;of the proposed educational institution;<\/li>\n\n\n\n<li>It has to insert the details about the&nbsp; and the regularity in which they are going to get held;<\/li>\n\n\n\n<li>It should include the information related to the&nbsp;Auditors&nbsp;of the proposed educational institution;<\/li>\n\n\n\n<li>It has to include the&nbsp; \u2018Arbitration&nbsp;Clause\u2019 in case of any dispute between the supporters of the proposed educational institution;<\/li>\n<\/ul>\n\n\n\n<p>12. The MOA and AOA documents have to be signed by every member of the proposed institution, observed by a notary with the address and official stamp.<\/p>\n\n\n\n<p>13. It is desirable to hire a professional to figure the clauses on Memorandum of Association (MoA) and Rules and regulations under Articles of Association (AoA) of the proposed institution. It makes sure that you have what the registrar is searching for approval.<\/p>\n\n\n\n<p>14. After the arrangement of Rules and Regulations if you want to change the rules but the new set of rules will have to sign by the Chairman, Vice President, and the Secretary of the educational institution.<\/p>\n\n\n\n<p>15. Beside requisite fees, two copies of the above-mentioned documents are to be submitted to the Registrar and signed by the registrar. One copy is submitted and the other one is kept for further use. <\/p>\n\n\n\n<p>16. After the approval on the documents, the registrar will issue Registration Certificate by assigning a number of registrations to the proposed education institution.<\/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>It is visible that all operations under educational institution depend on the managerial control of the founders. It is just because the educational institution can be created as a Non-Profit Organization so that the purpose of teaching under NGO can avail advantages delivered by the Central or the <em><strong>State Government<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/State_government\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>. Contact our <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> Professionals to know more about NGO Registration.<\/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\/exemptions-given-to-educational-institution-as-ngo\/\">What are the Exemptions given to Educational Institution as NGO?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Budget 2020 has amended specific provisions of the Income Tax Act, 1961 that has a great impact on the performance of the registered Charitable Trusts and NGOs. The charitable trusts and NGOs are loaded with the setting an expiry date for registration, renewal of existing registration, filing of statement for donation receipts and other formalities [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":19117,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[1188],"acf":{"service_id":"407"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":2905,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19111"}],"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\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19111"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19111\/revisions"}],"predecessor-version":[{"id":66483,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19111\/revisions\/66483"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19117"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}