{"id":7051,"date":"2020-04-20T16:29:09","date_gmt":"2020-04-20T10:59:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=7051"},"modified":"2021-01-11T15:11:55","modified_gmt":"2021-01-11T09:41:55","slug":"how-to-get-80g-registration-for-trust","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-get-80g-registration-for-trust\/","title":{"rendered":"How to Get 80g Registration for Trust?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">80G is\na certificate of tax exemption that you got when you made donations to\ncharitable trusts or organizations that are registered under section 12 A. <\/p>\n\n\n\n<p>There\nis, however, a criterion for the maximum permissible deduction. The rule is<strong><em> \u201cif\nthe overall donation amount exceeds 10% of the total gross income, then the\nexcess amount will not eligible for any tax benefit\u201d<\/em><\/strong>. 80G certificates are\na vital tax-saving 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\/how-to-get-80g-registration-for-trust\/#Who_is_not_eligible_for_tax_savings_under_80G\" >Who is not eligible for tax savings under 80G?<\/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\/how-to-get-80g-registration-for-trust\/#Who_is_not_eligible_for_tax_savings_under_section_80G\" >Who is not eligible for 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-3\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-80g-registration-for-trust\/#Section_80G_%E2%80%93_Percentage_of_Deduction\" >Section 80G &#8211; Percentage of Deduction<\/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\/how-to-get-80g-registration-for-trust\/#Documentation_Needed_For_Claim_Deductions_under_80G\" >Documentation Needed For Claim Deductions under 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\/how-to-get-80g-registration-for-trust\/#Mode_of_Payments_comply_with_Tax_Deduction\" >Mode of Payments comply with Tax Deduction.<\/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\/how-to-get-80g-registration-for-trust\/#80G_Registration_%E2%80%93_Compliance_Requirements\" >80G Registration \u2013 Compliance Requirements<\/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\/how-to-get-80g-registration-for-trust\/#Process_of_obtaining_80G_registration\" >Process of obtaining 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\/how-to-get-80g-registration-for-trust\/#Issue_of_Certificate\" >Issue of Certificate<\/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\/how-to-get-80g-registration-for-trust\/#Salient_features_of_Section_80G\" >Salient features of Section 80G:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_not_eligible_for_tax_savings_under_80G\"><\/span>Who is not eligible for tax savings under 80G?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A person who avails a provisionary donation can get tax exemption under 80G.<\/li><li>Donations made to certified <a href=\"https:\/\/corpbiz.io\/trust-registration\"><strong>trust<\/strong><\/a> can only qualify for deduction u\/s 80G. <\/li><li>A donation by NRI is made to eligible institutions and trusts avail the tax exemption under section 80G.<\/li><li>&nbsp;If the donation is made by the salaried person.&nbsp; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_not_eligible_for_tax_savings_under_section_80G\"><\/span>Who is not eligible for tax savings under section 80G?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>If a donation serves foreign trust. <\/li><li>If donations have been made to political parties\nor for printing or publishing of brochures, flyers, and pamphlets.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_80G_%E2%80%93_Percentage_of_Deduction\"><\/span>Section 80G &#8211; Percentage of Deduction <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>100% deduction u\/s 80, if the donation is made\nto the prime minister relief fund&nbsp; <\/li><li>50% deduction in case if the contribution made\nto the trusts like &#8220;Indira Gandhi memorial trust.&#8221;&nbsp; <\/li><li>An approved institution that promotes family\nplanning is eligible for 100% exemption u\/s 80G. <\/li><li>Any charitable trust is eligible for 50%\ndeduction u\/s 80G.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documentation_Needed_For_Claim_Deductions_under_80G\"><\/span>Documentation Needed For Claim Deductions under 80G.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A stamped receipt is imperative for the claim of deduction under section 80G. The receipt has to be issued by the recipient trust. The receipt should contain the detail like <\/li><\/ul>\n\n\n\n<ul><li>Name, address &amp; PAN number for the trust. <\/li><li>The amount donated ought to clearly cited in numeric as well as words.<\/li><li>Donations are the best source of tax exemption and attract 100% deduction \u2013 in such circumstances; form 58 should also be asked from the trust<\/li><li>Form 58 comprises the authorized amount as well as the amount that was raised.<\/li><li>Without presenting form 58, the deductions claims will be rejected.<\/li><li>Registration number of the trust under 80G<\/li><li>The registration number issued by the <strong><em>income tax department<\/em><\/strong><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/Pages\/default.aspx\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> and it should be printed on the receipt. <\/li><li>The registration is issued by the income tax department stay valid for two years only. Therefore, the registration number and the validity should also be mentioned on the receipt.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mode_of_Payments_comply_with_Tax_Deduction\"><\/span>Mode of Payments comply with Tax Deduction.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Donations made as gifts don&#8217;t come under the category of tax exemption or benefits. During a disaster such as floods, the donations will not help you avail of the tax exemption.<\/li><li>Only cheque donations and cash qualify for the tax exemption. <\/li><li>Salary can act as a source of the donation, and its receipt should be obtained on the name of the employer. This will give you access to exemptions under section 80G.<\/li><\/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\/charitable-institutions-related-changes-12a-12aa-and-80g-budget-2020\/\">Charitable Institutions Related Changes u\/s 12A\/12AA and 80G-Budget 2020\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"80G_Registration_%E2%80%93_Compliance_Requirements\"><\/span>80G Registration \u2013 Compliance Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The applicant of the <\/em><\/strong><em><a href=\"https:\/\/corpbiz.io\/80g-and-12a-registration\"><strong>80G registration<\/strong><\/a><\/em><strong><em> must comply with the provisions stipulated below:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The application can only be made by a recognized\neducational institution or a Government-funded institute. <\/li><li>The trust\/institution must be duly registered\nunder Section 25 of the Companies Act; or any other relevant Acts.<\/li><li>Applicants must not represent any caste and\ncreeds based activity.<\/li><li>The utilization of the donated funds should be\ndone for charitable purposes.<\/li><li>The registered trust\/institution should avoid\nthe possession of the income, which is not exempted. <\/li><li>The separate account must be created for the other\nbusinesses to impart better transparency on the movement of donations. <\/li><li>The appropriate maintenance of annual returns,\naccounting and bookkeeping, must be practiced before applying for the\ncertificate.<\/li><li>To avail of the eligible tax benefits, the\nrecipient must ensure the timely renewal of certificates.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_obtaining_80G_registration\"><\/span>Process of obtaining 80G registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As soon\nas the Commissioner of Income Tax obtain the Form 10G from the applicant, the\nprocessing of registration get initiated. Here are the following documents one\nneeds to attach with the form 10G.&nbsp; <\/p>\n\n\n\n<ul><li>Registration Certificate<\/li><li>MOA \/Trust Deed<\/li><li>NOC from the landowner where the registered\noffice is established.<\/li><li>Xerox of the Pan Card. <\/li><li>Xerox of the electricity bill, water bill, or\nhouse tax receipt. <\/li><li>Proof of the activities pursued in the context\nof the welfare. <\/li><li>Progress Report for the previous 3 years.<\/li><li>Account details and balance sheet for the last 3\nyears. <\/li><li>List of contributors (with their address and\nPAN).<\/li><li>List of the governing body of trustees with\ntheir contact details. <\/li><li>Copy of registration (section 12A() or copy of\nnotification (10(23)or section 10(23C)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issue_of_Certificate\"><\/span>Issue of Certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On\nreceipt of the application, the Commissioner may pass a written order which would\neffectively register the trust\/institution under Section 80G of the Income-tax\nAct. If necessary, the Commissioner can demand further documents from the\napplicant.&nbsp; In addition, the Commissioner\nis entitled to reject the application if the need for the same is felt. The\nregistration granted to the trust will be valid for one-three years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Salient_features_of_Section_80G\"><\/span>Salient features of Section 80G:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section\n80G deductions turn out to be active when an assessee donates to the trust that\nworks under the provision of tax law. <\/p>\n\n\n\n<p>Now, as\nfar as the eligibility criteria for the deduction is a concern, every\nindividual assesse, firms and so on, can claim the benefit, provided they have\nample proof in the form of statements presented for the donations.<\/p>\n\n\n\n<p><strong><em>There\nis, however, an exception when it comes to the mode of payment.<\/em><\/strong><\/p>\n\n\n\n<ul><li>The cheque, demand drafts, or cash is the only\nmode of donation.<\/li><li>Rs 10000 is the limit imposed on the person who\nchooses to make the payment via cash. <\/li><li>Any donations made in the form of food,\nmaterials, clothing, and so on do not come under Section 80G.<\/li><\/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\/registration-of-ngo-in-india-under-12a-and-80g\/\">Tax Exemption for NGOs: Section 12A &amp; 80G<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>80G is a certificate of tax exemption that you got when you made donations to charitable trusts or organizations that are registered under section 12 A. There is, however, a criterion for the maximum permissible deduction. The rule is \u201cif the overall donation amount exceeds 10% of the total gross income, then the excess amount [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":7052,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[192,3],"tags":[503],"acf":{"service_id":"12"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":64224,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7051"}],"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\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=7051"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7051\/revisions"}],"predecessor-version":[{"id":23956,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7051\/revisions\/23956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/7052"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=7051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=7051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=7051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}