An NGO itself is registered under section 80 G. if a Donor is making the donation to the NGO, Donor will get exemption of 50% of donation amount from taxable income. An NGO has to obtain approval from income tax department under section 12A, which has a lifetime validity and then 80 G registration shall be granted by the Income tax department with validity for 2-3 years.When an NGO eligible to apply for 80G exemption certificate:
Requirements for the eligibility of 80G certificate:
- An NGO can apply for 12A certification and 80G certifications just after the registration of an NGO.
Following Registration Documents are required:
- NGO should have principal objective for charitable purposes and entire, incomes should be from donations. If in case, NGO has a business income then the trustee of an NGO should separate books of accounts to ensure that NGO should not divert donations received for the purpose of such business.
- Bylaws of the NGO must contain that spending the income or assets should be exclusively for the purpose of charity.NGO should not be formed with the benefit of a particular religious community or caste.
- Proper books of accounts of the NGO should be maintained, including its receipts and expenditures.
- Mandatory registration of NGO's bye laws
- Duly filled in Form – 10G.
- Trust Deed / MOU of Section 8 company.
- NOC from the landlord if registered office is on rent.
- A copy of PAN Card (NGO).
- Any Valid utility bills.
- Summary of welfare activities carried in the preceding 3 years.
- Balance sheet and books of accounts for the preceding 3 years.
- List of donors along with their address and PAN.
- List of governing board of trustees members with their contact details.
- Original Registration Certificate.