80G Registration

80G Registration is very necessary registration for NGOs for the purposes of exemption from tax on income. A donor who can be a person, company, association could be eligible to a reduction in total income while donating a certain amount to a non-profit organization (NGO). The exemption is under 80G of the Income Tax Act. However, the amount offered by a donor, should not exceed ten percent of the total gross income of the donor.

Donations must be made in cash and cash transactions are indicated in this case. No other items such as bike, bicycle, car or any other physical object to be evaluated other than money. As donor certificates are issued by an NGO, they must have a the number and date of the 80G certificate. This indicates that the period to which the certificate is valid.

The registration process requires a period of 3-4 months and is granted for a period of time. The documents required for this purpose are- a copy of the document, the statutes, certificate and details trusted recording work for three years or the creation, whichever is less, copies of audited accounts. There are a number of conditions that must be met for 80G is that the NGO should not have non-exempt income, as business income. NGOs should not work for the benefit of a community or religious caste. NGOs must keep regular accounts of expenditure and revenue.

The advantage in this case is limited to the sum of the amounts given are to be ordered by the exemption, that, the donor is to receive. There is a limit on the benefit that may be received for registration.