80G Registration

If you are a charitable organisation or a donor looking for tax benefits, then you have come to the right spot. We at IndiaFilings specialise in helping organisations obtain 80G registration under the Income Tax Act, which allows them to avail of tax exemptions. Our expertise and experience makes the registration process seamless and hassle-free for our clients.

What is 80G registration?

80G registration is a provision under the Income Tax Act of 1961 that enables donors to claim tax deductions on donations made to eligible charitable organisations. The registration grants tax benefits to both the donor and the recipient. Charitable organisations registered under Section 80G are entitled to receive tax-deductible donations, and donors can claim deductions on the amount donated while filing their income tax returns.

The Finance Act 2020 introduced amendments to the 80G registration provisions in India. These amendments include the requirement for organizations with 80G registration to file annual returns, verification of donees by the Income Tax Department, and the possibility of reassessing and revoking registrations for non-compliance. These amendments aim to promote transparency, accountability, and ensure donations are directed to genuine charitable institutions. Organizations and donors should familiarize themselves with these amendments in order to operate smoothly.

Eligibility Criteria for 80G Registration:

To qualify for 80G registration, charitable organisations must meet specific eligibility criteria set forth by the Income Tax Act 1961. The requirements include the following:

• The organisation should be properly registered under the Societies Registration Act of 1860 or any equivalent legislation under Section 8 of the Companies Act of 2013. The organisation must be registered as a trust, society, or nonprofit company under the relevant laws in India. It should have a valid registration certificate issued by the appropriate authorities.
• The organisation's objectives should not include provisions for utilising its income or assets for purposes other than charitable ones. The organisation must engage in activities under the "charitable purposes" definition specified in the Income Tax Act. These purposes include relief of people with low incomes, education, medical relief, preservation of the environment, promotion of art and culture and more.
• The organisation must comply with all income tax regulations and maintain proper books of accounts for its income and expenses. It should also submit its audited financial statements to the income tax department.
• The organisation should not have any income that is not exempt, such as income derived from business activities. If the NGO does generate business income, it must maintain separate accounting records and ensure that donations received are not used for purposes unrelated to charitable activities.
• The organisation should not work exclusively to benefit any specific religious community or caste.
• Under the revised provisions of Section 80G, it is compulsory for organisations seeking registration or re-validation to provide their registration number obtained from the Darpan portal of Niti Aayog. This requirement also applies when the applicant organisation receives or plans to receive grants or assistance from the Central Government or State Government.

Documents required for 80G registration:

To apply for 80G registration, the following documents are typically required along with Form 10A/10AB:

• Self-certified copy of the incorporation document of the Trust/Society, whether created through an instrument or otherwise.
• Self-certified copy of the registration certificate issued by the Registrar of Companies, Registrar of Firms and Societies, or Registrar of Public Trusts, depending on the type of organisation.
• Self-certified copy of the registration under the Foreign Contribution Regulation Act (FCRA) if the applicant is registered under this Act.
• Self-certified copy of the existing order granting approval under clause (23C) of section 10.
• For existing entities, copies of the annual accounts for up to three years immediately preceding the year when the application is being made.
• If the entity's income includes profits and gains from the business as per the provisions of the sub-section (4A) of Section 11: Copies of the annual accounts and audit report as per Section 44AB for the three years immediately preceding the year when the application is made.
• Details of the organisation's operations since its inception or for the last three years, whichever is shorter.

It is important to note that specific document requirements may vary based on jurisdiction and the concerned income tax department. Our experts at IndiaFilings will guide you through the document collection process and assist you in ensuring that all necessary documents are submitted accurately.

Overview of 80 G Registration:

Organisations must apply to the Principal Commissioner or Commissioner to apply for fresh registration under Section 80G. Provisional registration is granted for three years. Once approved, the registration remains valid for three years from the Assessment Year in which the registration is sought. Organisations seeking renewal of the new registration must adhere to either of the following timelines, whichever is earlier:

1. Submit the renewal application at least six months before the expiry of the validity period.

OR

2. Submit the renewal application within six months from the commencement of activities.

The provisional registration, initially granted for three years, must be renewed upon reaching the specified timelines. The renewed registration is valid for five years and must be renewed at the end of each subsequent five-year period.

For existing registrations, the approval under section 80G was previously valid indefinitely. However, the Finance Act 2020 introduced changes that require the re-validation of all existing 80G approvals. Organisations with existing registrations must apply for re-validation within three months. The re-validation of registrations, as per the amended provisions, remains valid for five years. After the five-year period, organisations must apply for approval again at least six months before the expiry of the registration.

Our Registration Process:

At IndiaFilings, we follow a streamlined process to ensure a hassle-free experience for our clients. Here's an overview of our registration process:

1. Consultation: Our experts will conduct an initial consultation to understand your organisation's charitable activities, legal structure, and other relevant details. Based on this information, we will determine your eligibility for 80G registration.

2. Documentation: Once your eligibility is established, we will assist you in gathering and preparing the necessary documents, including your organisation's registration certificate, audited financial statements, and project details.

3. Application Preparation: Our team will meticulously prepare the 80G registration application, ensuring that all required information is accurately included. We will also guide you on any additional documentation or clarifications the authorities require.

4. Submission and Follow-up: We will apply to the appropriate authority on your behalf, along with the supporting documents. Our team will diligently follow up with the authorities to track the progress of your application.

5. Certificate Issuance: Upon successful verification and approval of your application, you will receive the 80G registration certificate. This certificate will enable you to receive tax-deductible donations and attract potential donors who seek tax benefits.

Why register with IndiaFilings?

IndiaFilings is a leading provider of business compliance and registration services in India. Our team of highly dedicated experts has extensive experience in assisting organisations with 80G registration, ensuring a smooth and efficient process. Choose us for our expertise, experience, and proven track record in obtaining 80G registration for numerous organizations.

We provide tailored solutions based on your unique needs, ensuring a hassle-free process by taking care of all paperwork and compliance requirements. With our commitment to timely completion, transparent pricing, and detailed fee information upfront, you can confidently enhance your organization's credibility and access tax benefits. Contact IndiaFilings today to begin your 80G registration journey with expert assistance.