Privileges of Income Tax Act, 1961 u/s 80G
Privileges of Income Tax Act, 1961 u/s 80G
INTRODUCTION
Section 80G of the Income Tax Act, 1961 avail an Income Tax Payee to claim deduction for donation made by them to certain organizations. This enables the people to donate for a very noble cause. You will get Income Tax benefits only in the case you have applied for Income Tax 80G benefits. It offers a deduction for donations to certain prescribed funds and charitable institutes. If a trust gets registered itself under this act, then the organization giving donation to the trust will get a 50% deduction from its taxable income.
REGISTRATION PROCEDURE
Generally the NGO which is six months old is taken into consideration to get the certificate from the Government. It’s not necessary that you can apply after 6 months only. You can also apply for this after 1 or 2 months after registering the NGO but in this case you will have to submit all the data of your works like: You have to show the bills of the social work that you have done and some of the photographs of your work along with the necessary documents which are mentioned below. It might take four to six months to get the certificate from the date of filing of the application. Some important documents which are required to get 80G approvals are as follows:
• Photocopy of registration certificate,
• Memorandum of the non government organization,
• Annual Report,
• Balance Sheets,
• PAN Card of the NGO,
• Bank Account details of the NGO along with Bank Statements.
• Bills of the social activities you have done for the NGO,
• Pictures of the charitable activities.
TIME FRAME
This might take four to six months to get the certificate from the Income Tax Department.
ADVANTAGES
There are many advantages of this certificate. The organization or the person will get 50% deduction of their taxable income after getting the certificate from the Government. So if you want 50% tax exemption of your income, then you must register your NGO. If an organization has obtained certificate under section 80G, then the donors of the NGO can claim for tax exemption. The validity of 80g is lifetime nowadays.
